By Tracy Domingo
News Assistant
Gov. Arnold Schwarzenegger has been traveling up and down California passionately promoting the California Balanced Budget Package more commonly known as propositions 57 and 58. The two proposals will be on March 2 primary election ballot and the governor along with a broad coalition of officials are practically begging voters to check ‘Yes’ for 57 and 58 in order to keep the state from going bankrupt.
“The politicians in Sacramento got us into this mess, and I need the people’s help to get us out,” Gov. Schwarzenegger states on his “Join Arnold” Web site. “That’s why I need everyone to vote ‘Yes’ on propositions 57 and 58 to make sure this never happens again. Fifty-seven and 58 will make sure California has a balanced budget with no more crippling deficits.”
Many Republicans and Democrats, including the unlikely duo between the governor and State Controller Steve Westly, have put aside their qualms with each other in order to form a united front in imploring the California populace to approve the two measures.
In the wake of the Davis-era, the Golden State is drowning in a multi-billion dollar deficit and many say these propositions are the first step on the road to economic recovery.
“Our state faces a massive fiscal crisis, and we’ve got to deal with it,” said Sen. Diane Feinstein, D-Calif., on a television announcement titled “Recovery.” “Propositions 57 and 58 are essential to protect our schools, healthcare and economic recovery.”
Proposition 57 is a one-time bond of up to $15 billion that would take advantage of the current low interest rates in allowing the state to refinance and consolidate its debt. However, in order for 57 to pass, 58 must also be approved by voters. Proposition 58 attempts to assure that the state never finds itself in the same dismal situation again by requiring politicians to balance the budget every year by making sure General Fund expenditures do not exceed General Fund revenues.
Additionally, the proposition forbids any future bond financing of a deficit and it establishes a budget reserve or “rainy day” savings account that could be used for paying off bonds or for any other future fiscal emergencies.
As the elections come closer, more and more individuals and organizations are coming forward to support the package. The crucial budget issue has seemingly broken down political party barriers as Republicans and Democrats join forces to get the measures passed. In fact, support of propositions 57 and 58 has produced what seems to be the largest bipartisan federation of officials and organizations in California ballot measure history.
The decision itself is in the hands of the voters, and recent polls show support for the economic recovery package is increasing.
“‘Yes’ votes on propositions 57 and 58 are essential to the financial welfare of California,” Westly states on the Californians for a Balanced Budget Web site. “Without their passage, the cuts and tax increases that will be required to balance the budget will be astounding. The California Balanced Budget Package is the first step in getting our fiscal house in order.”
Submitted February 26, 2004