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Update: Democrats back off of Borrowing Money From Early Childhood Education and Other Trust Funds

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Well, it hit the fan in Sacramento today. Earlier today i wrote about the proposal to take $200 million from early childhood education to cover a portion of the massive deficit.

The Democrat leadership scheme to borrow money from education, transportation and other "trust" funds became public. The leadership, Perata, Bass and company realized it would hit the fan.

First, Senator Don Perata, the most investigated member of the legislation, and Democrat Senate leader, sent out a press release, IMPLYING that borrowing was off the table. But as an article in the Capitol Alert notes, he didn't really take borrowing off the table. All he said was that it would not be a major part of the solution to the deficit. His plan was to borrow about $3 billion. So that is only 20% of the $15 billion deficit.

The article said, "The Perata statement issued Friday, however, did not rule out borrowing finding its way into a final budget. The statement reiterated that the Democrats' priority is to find a more permanent solution to the state's structural budget problems."

Then Democrat Speaker Karen Bass needed to be heard. She too opposed borrowing as the main method of solving the deficit problem.

Even though Perata and Bass killed trees to tell us borrowing is not the best idea to cover their deficit, be careful. Borrowing is STILL on the table. No fund for education, health care, roads or the environment is safe while this legislature is in session.

2 Comments

Wasn't there also a proposal by the Gov. to raid funding for local government and pay it back with high interest rates? Great idea. Just what State needs - more debt.


The state has $41 billion more to spend than it did 4 years ago...so don't blame the taxpayers....most of it goes down the black holes of education, transportation, and health...up 13%, 10%, and 10% respectively over last 4 years....a redistribution of wealth from the private sector to the public sector....

see:

http://www.latimes.com/news/opinion/la-oe-matsusaka17-2008jul17,0,7957570.story


About this blog...

Frankly Speaking is a blog dedicated to the new technology, interaction by concerned citizens about policy and politics in Ventura County or affecting our county.

Have tips, information or concerns, contact me directly at stephenfrank@sbcglobal.net.


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About this Entry

This page contains a single entry by stephen frank published on July 18, 2008 4:54 PM.

Day 18 Without a State Budget: Democrats Want to use Early Childhood Funds to cover Deficit was the previous entry in this blog.

Newt Gingrich: Three Ways to Lower Gas Prices is the next entry in this blog.

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