From the LA Times:
Fresh from their victory in the recall election, advisors to Gov.-elect Arnold Schwarzenegger are considering asking voters next fall to approve a sweeping constitutional amendment to limit state spending.
The governor-elect also may ask California voters to weigh in on whether the state should sell $10.7 billion in bonds to pay off part of the budget deficit over a period of years.
Schwarzenegger spokesman H.D. Palmer said the governor-elect will wait until after his audit of state spending is finished before making most decisions on how to proceed. "The audit is job No. 1" for the new administration, he said, and "a number of decisions are going to flow from the findings of the audit."
But Schwarzenegger "has indicated very strongly that he believes a spending cap is very necessary," Palmer said. "He has indicated he intends to work with the Legislature to move that forward. But he will not hesitate, if need be, to take issues to the people."
Of course California used to have a spending cap, but it was whittled away by special interests. Now it's just an empty shell. Stay tuned for the November issue of Privatization Watch. It focuses on state budgets and includes some discussion of how spending caps are working quite well in other states.