$42 billion money pit.

After a timeframe seemingly as long as an elephant's gestational period, the state legislature has finally completed a budget. 6 Republicans crossed the aisle to get a deal done. The state Republican party has already passed a punitive measure by cutting each of these 6 off from any party funds for their re-election campaigns in 2010. Wow. Maybe even more than the Republicans in DC, the local party seems intent on their own destruction. I can't say that I understand any of the budget issues in California, but here are my observations. Californians do pay the highest state income tax of any state in the country. But that's somewhat artificial because we also have a property tax system that's below market because its capped depending on when you purchased your property. If you brought it sometime before 1978 or so, you are golden. Part of the deal is it also takes 2/3 of the legislature to make any budget changes. That's a very high fraction and that's why we end up unable to complete a budget any year. It's worse than the filibuster stopper. Add to that, that the governor before Arnie tried to re-instate previously existing motor vehicle fees and he paid for it with his political life and we ended up with Conan the Barbarian as our governor.

I can understand the Republican impulse to reduce taxes. LIke I said, if you look at it from a pure income tax view, you can at least make the argument. But these people have their head in the sands. Tax cuts don't solve everything. To argue that tax cuts are the only solution and the only way to make up $42 billion is insane. $42 billion without any increase in revenue? More than anything, it seems like they're hellbent on the complete and utter destruction of the state. I can't see my way to any other rationale for it.

Even Arnie has come around to acknowledging some new revenue was necessary. But there aren't any real long term fixes yet. Next year, we'll go through the same fight as this year and the one before and the one before that. There are fundamental flaws. I'm hoping they get around to fixing them and this great state can get back on the right path.