Blog for Boomers

California Budget Deficit-Cars and Furniture

Suggestion to the Schwarzenegger administration: The budget gap California is facing will not be closed by not replacing worn out furniture and/or foregoing the purchases of fuel efficient cars for the State fleet. If anything it hurts the economy. This is the time to buy! Inflation is low including goods the State purchases. Close the budget deficit in REAL ways.This is not Hollywood and make believe will not close a 20 billion dollar deficit.

The decisions are tough. I suppose that’s why our politicians struggle with choices that could make it very difficult to get reelected. Here is a list of unpopular choices that would reduce the deficit.

• Cut welfare with a precise yet sharp knife. Only spare programs for the disabled, elderly and those that put California citizens into productive jobs. It is a mistake to cut Cal Works programs.
• Reduce business taxes and encourage small business growth in California. Small business growth will increase jobs and revenues to the State.
• Immediately implement a golden handshake to State workers eligible to retire. The Schwarzenegger administration has demoralized employees so badly that morale in most agencies is so poor “boomers” by the thousands will opt out of state employment with a little encouragement. Don’t refill those positions until there is a state surplus.
• And if that is not enough raise taxes. I hope that would not be necessary, but if it is start with a gas tax , sin tax, and maybe, only maybe, a personal income tax increase. Ouch, it hurt to write that, but pain will be required to clear up this mess.