Commentary; Davis' Budget Has Flaws, but Works; The governor's plan passes the test of pragmatism Home Edition

• Published in: The Los Angeles times
• Main Author: Panetta, Leon E
• Format: Newspaper Article
• Language: English
• Published: Los Angeles, Calif Los Angeles Times Communications LLC 05.02.2002
• ISSN: 0458-3035

So where does California turn to deal with a $12.5-billion budget deficit? It turns, as it must, to a combination of proposals included in the governor's recommended budget: $5.2 billion in reductions; $586 million in funding shifts; $1billion in federal funding increases in security, health care, child support and immigration; and $5.6 billion in loans, payment deferrals and transfers. The steps needed to solve deficits are by their nature contrary to every political instinct. Most members of the Legislature believe that they are elected to spend money, cut taxes and bring home the bacon, not to reduce deficits. During the late 1980s and early 1990s, when the federal government was running close to $300-billion annual deficits, there wasn't a member of Congress who didn't have a simple solution to balancing the budget. Change the Constitution to require a balanced budget. Raise taxes across the board. Cut defense spending. End welfare, reduce domestic spending and cut entitlement programs. Give the president line-item veto power. Few of these were politically acceptable. The result was to borrow and spend. The national debt quadrupled.