Written by: Gus Lubin
Arnold and the California Legislature managed a good headline last week by promising to have closed the $19 billion budget hole. Suspiciously, few details were revealed about the new budget until this week.
Now with the full plan going on vote today, critics warn it may come unraveled.
The OC Register editorial warns: "Celebration may be premature. In fact, the real legislative battles may just be beginning. We're skeptical that the budget terms Democratic and Republican leaders reportedly agreed to behind closed doors will stand up, particularly once partisan die-hards and affected constituencies began chipping away."
Other parts of the balanced budget could be a fantasy. For instance, it counts on $5 billion coming from the federal government -- which seems unlikely. Schwarzenegger also upgrades revenue expectations by $1.4 billion -- without raising taxes.
We're reminded of the "bag of tricks" New York uses to balance the budget.
If the federal government doesn't come through with a bailout, California is looking at this austerity plan >
Blog post courtesy of the Business Insider - Read more: http://www.businessinsider.com/california-budget-fantasy-2010-10#ixzz11VBT0r00
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