Commentary

California Fiscal Dreamin’

Last month CA voters approved a stunning $40 billion in new debt. Reason pointed out the financial insanity of this. Now Steve Frank at CPNV is doing a great job keeping track of the consequences. Government Can’t get Enough Money…More Big Bonds in 2008? State Revenue Down by $657 Million In November Special Interests Lobbying to Increase Size of California Deficit The formula is really very simple. CA already spends more than comes in. We are borrowing billions that has to be paid back with interest. We are unwilling to take a hard look at our spending and prioritize and make cuts were necessary and sensible. All this only adds up to one thing–tax increases. At some point it will finally come home to roost, and the false choice will be presented to Californians–tax hikes or cuts in the most emotionally appealing government programs. No discussion of doing the hard work of managing an organization within a budget will occur. Then we’ll see if the taxpayers can be fooled again. I hold out little hope since they have a track record of believing the false choice.

Adrian Moore

Adrian Moore, Ph.D., is vice president of policy at Reason Foundation, a non-profit think tank advancing free minds and free markets.