This story was reported for the San Diego News Network on February 18, 2010.
Gov. Arnold Schwarzenegger is trying to look on the bright side, despite the state’s massive budget deficit. He may be the only one looking at the silver lining, though. Here’s a look at California’s “sorry” state.
California rated “deadbeat” state: California is among five of the top “deadbeat” states in the nation, according to an ABCNews.com analysis.
The four other states include Illinois, Florida, New York and Michigan. ABCNews.com based their analysis on “economic and demographic factors.”
So with an unprecedented budget gap in California, the state hits the top of the ABCNews.com list.
“With a fiscal year 2010 budget gap of nearly $52 billion, or 56 percent of its total general budget, California is hands down the poster child of fiscally imperiled states. It also enjoys the dubious distinction of having the single worst credit rating (A-) of any of the 50 states, as measured by Standard & Poor’s.
Factor in an above-the-national-average unemployment rate of 12.4 percent, severe political dysfunction – a two-thirds majority is required to pass a budget, making any semblance of shared political sacrifice practically a nonstarter – as well as the fact that California consumes three times more energy than it produces, and it becomes painfully clear that the Golden State is hurtling toward a very dark place.”
Despite the budget woes, Schwarzenegger is playing his role as governor by noting California is still a destination. Take, for example, a remark he made this month when he told reporters that most people in the world “want to come to California.” (He also insulted Florida and Iowa in the process.)
California and Greece: In light of Greece’s budget troubles, more analysts are comparing the European paradise to California.
A columnist for The Globe and Mail said Greece’s problem is nothing compared to “California’s sorry state,” though.
Barrie McKenna compares the state and the country.
“In some ways, California may prove to be the bigger headache. Were it a country, the state’s economy would rank eighth in the world — roughly the size of France and much larger than any of the so-called PIIGS of Europe: Portugal (No. 50), Ireland (No. 56), Italy (No. 11), Greece (No. 34) and Spain (No. 13).”
What California and Greece have in common, though, is the state’s budget problems affect the entire nation, the same way Greece’s problem affects the entire European Union, McKenna wrote. He writes that it will just take time for all Americans to realize the effects of California’s weakening economy.
“The market turmoil of recent weeks has forced Europeans to confront these linkages. In time, Americans will also realize that taking care of California, and other financially strapped states, is a national obligation.”
More money for Gov’s office: The Governor’s office is asking for more money next fiscal year.
According to a CBS13 report, “Governor Arnold Schwarzenegger is apparently asking for more money for his office in his new budget.”
According to the Legislative Analyst’s Office, or LAO, the Governor’s office is spending $14 million this fiscal year and is asking for $2.7 million more for next year — $16.7 million in total.
“When CBS13 asked why Schwarzenegger’s administration would ask for more money when California’s bank account is crumbling, Aaron McLear, a spokesperson for the Governor’s office, said our math is ‘confused.’
‘This year we’re spending less money than last year in the Governor’s office and all throughout the administration,’ McLear said.”
According to the LAO report cited by CBS13, in 2001 the budget for the Governor’s office was $5.6 million and this fiscal year it was $14 million.
Hoa Quach is the political editor for the San Diego News Network.