Friday, July 24, 2009
Fiddling while Rome burns.
Well, today we have a budget. That is to say, a budget that will likely destroy the state of California, even if it manages to get past all the deserved lawsuits. In terms of public policy, it's an example of a farmer deciding to eat this year by devouring all the seed corn he'll need for next year.
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California desperately needs insolvency. All of the problems that we're buried under are legislatively locked and we cannot revisit those contracts or the guaranteed spending without a federal judge opening them up again. The majority of state tax money goes to state employee union contracts and repaying bond issues, two things that the legislature cannot legally touch, but the two things that have utterly bankrupted the state.
ReplyDeletePlaying patch-up with borrowing every year won't solve the problem. There just isn't any way left to us now but bankruptcy and reorganization.