To: Nadine Carroll who wrote (15887 ) 11/11/2003 2:31:07 PM From: LindyBill Respond to of 793707 California Insider A Weblog by Sacramento Bee Columnist Daniel Weintraub November 11, 2003 The budget fix Gov.-elect Arnold Schwarzenegger seems to be creeping closer toward a plan to restructure the state’s accumulated debt and borrow some more to ease the way to a balanced budget. As we reported here Oct. 9, such a bond -- possibly as large as $20 billion -- is the only plausible way for him to fulfill all of his campaign promises on the fiscal front, given the budget and political realities he confronts.The Times today reports that this approach is drawing protests from some Democrats while getting support, or at least acquiescence, from Republicans and anti-tax activists. Critics say it’s a cop-out, and are especially skeptical of the plan to cut the car tax and then put the first-year bill for that move on a credit card. Count me among the skeptics. I see nothing wrong with Schwarzenegger's plan to restructure the Davis debt and present it to the voters to protect the state from a legal challenge now pending. I would argue that it is prudent to get voter approval, as the constitution requires, rather than risk a court ruling that would strike down the deficit bonds adopted last summer and send the state into yet another crisis. I could even imagine adding a few other elements of existing, internal borrowing to the new debt measure in order to wipe the slate clean. But I think it would be folly to cut taxes and cover the difference with borrowing. Here is the problem, though. Schwarzenegger was just elected, convincingly, after a campaign during which he pledged to do pretty much this. He said over and over that he would cut the car tax. He said he would restructure the debt. And he said he would rein in state spending with a new constitutional spending limit that would prevent California from ever again getting itself into this kind of fix. I don’t think people who lost the election, or whose party lost the election, have the standing now to demand that the winner renege on his promises. Remember these elements: Rescind the car tax increase. Restructure the debt. Protect education. Adopt a “never again” spending cap. That’s what Schwarzenegger promised. Let’s see if he delivers.sacbee.com