Prop 98 To Be Suspended?

http://www.sacbee.com/topstories/story/2019315.html

First, California spent $56 billion on education last year. $56 billion! That is a ridiculously large sum of money.

This would be the 3rd time that Prop 98 is suspended. The last time, the Education Lobby was bought off with pension concessions... Kick the can down the road and don't bother solving anything today.

I don't hink the public will go for increased Pension and Health Care benefits this time around. They want Sacramento to fix the problem - that means that somebody will have to make some sacrifices.

If the Sacred Cow of Education is being punked, then you have to wonder if there is some sort of accounting gimmick coming for Muni Bonds.

(update)

I love it when a newspaper guy reaffirms my thoughts (He even uses my language). From the Sacramento Bee -

http://www.sacbee.com/budget/story/2019140.html

"For years, the opposing ideological armies have flirted with a final confrontation over whether to expand the state's revenue structure to support its superstructure of educational, social, health and penal services, or shrink spending to match revenues.

Each time the apocalyptic moment appeared nigh, however, those involved would avoid a decisive battle with some new set of accounting gimmicks or loans that postponed the day of fiscal reckoning and left the underlying ideological conflicts unresolved."

"Now, with time running out on his governorship and with the state's budget crisis worse than ever, Schwarzenegger appears to savor a conclusive confrontation.

"This is the year we have to stop promising people things we can't deliver," he said last week.

Meanwhile, Democrats are just as determined to dodge the bullet Schwarzenegger wants to fire. They clearly want to increase taxes again, but barring that, they want temporary fixes that will leave the safety net of social services intact, hoping that an improved economy and/or a new governor will make them whole again.

"We're not cutting deeper," Senate President Pro Tem Darrell Steinberg said during one debate. "The price is too high," he said on another occasion.

If he sticks to his guns – and that's always uncertain with Schwarzenegger – the governor is playing a stronger hand. He clearly wants a legacy of having tamed the budget monster as promised, and he's a lame duck who won't be seeking office in California again, so he has nothing to lose politically.

The state is already issuing IOUs to some creditors and in another couple of months will be unable to pay any of its bills unless it floats some short-term cash flow loans, thus forcing a decision of some kind to satisfy lenders."