Arnold’s proposals for massive cuts, with a concomitant 4.5 billion rainy day fund was a brilliant political move.
He can “compromise” on four billion worth of cuts – state parks, Cal Grants, Prop 1A borrowing from local government, less drastic cuts to a few social programs, while still making barbaric cuts to social services and appearing as meeting the Dems halfway.
Our pathetic media will dance to his tune and reinforce whatever message he puts out.
Whoever is doing the politics for Arnold is pantsing the Democratic legislators, time and agan.
Here’s how budget negotiations have gone for the last few years:
ARNOLD: “What’s that?”[points at Dems’ chest]
DEMOCRATIC LEADERSHIP: [looks down] “What?”
ARNOLD: [Slaps up]
NELSON MUNTZ: “Hah Ha!”
We’re the second hardest-hit state in the country on mortgage foreclosures, after Nevada. The implosion of the housing bubble is doing a lot of collateral damage on the California economy. So Arnold wants the “reserve” so that we don’t have to go through more budget cuts in three to six months when it becomes apparent that revenues have dropped even further than forecast.