Schwarzenegger, California Melting Down
Lyndon LaRouche
SACRAMENTO, Nov. 8, 2008 (LPAC)--As California's financial circumstances plummet at an accelerating rate, the erratic, and highly dangerous, Gov. Arnold Schwarzenegger continues to demonstrate that he has no idea what to do, except to slash the living standards of Californians. On Wednesday, Nov. 5, he called a special lame duck session of the legislature, to address the latest set of devastating figures. Due to the collapse of revenues, the deficit for the ongoing fiscal year, 2008-09, is now $11.2 billion. The budget for this year, which was completed nearly three months late, must be re-done, as the so-called balanced budget deal, which was a fraud to begin with, has unraveled. In all, it appears that the deficit from the original budget's spending plan presented last January by Schwarzenegger--which was an austere plan, to begin with--is now verging on $30 billion!
This deficit has been growing at the rate of more than $1 billion per week! Of course, this shows that
1) the figures used by Arnie in crafting his bogus budget were fraudulent;
2) that the state's economy is in a free fall.
It is now up to Schwarzenegger to deliver on his promise that he will "fix the broken budget system." The only fix Arnie has, is fascist austerity. After a brief meeting yesterday with legislative leaders, he sent the legislature home. Schwarzenegger has proposed a 1.5% increase in the state sales tax, and a non-paid day off per month for state workers. One Democratic insider reported that, since this will do little to reduce the deficit, the Governor's planned "savings" will include massive cuts in an already gouged public health sector, and deep slashes in the safety net for poor, elderly and disabled Californians. Expect further cuts in the state's antiquated and inadequate infrastructure, as well.