August 20, 2003

POOR, POOR, PITIFUL ME

Davis offers skewed version of history -- but won't apologize (Dan Walters, August 20, 2003, Sacramento Bee)
The governor described the 2001 energy crisis, which saw Californians experience power blackouts and soaring utility bills, as something foisted on the state by Enron and other greedy energy suppliers. However, Davis glossed over and distorted his refusal early in the crisis to allow utilities to sign long-term supply contracts that would have protected them and their customers from soaring spot market power prices. That refusal has been singled out by even the most objective critics as Davis' chief failure -- one magnified a half-year later when he sought long-term contracts at much-higher prices. [...]

He took much the same tack on the budget, saying only that "I could have been tougher in holding down spending when we had a big surplus" and quickly adding that the $8 billion in extra spending that he and lawmakers of both parties sanctioned in 2000 was to finance vitally needed health and education services. "I make no apology for that," Davis said, adding that it was "preposterous" that he had concealed the size of the state budget deficit when he was running for re-election last year.

The record differs markedly from Davis' self-serving version. When the state experienced a $12 billion windfall in 2000, Davis publicly declared that he would stoutly resist pressure from either party to spend it because it likely would be a one-time phenomenon, stemming from a flurry of stock market activity in the volatile high-tech industry. If the money were to be committed to ongoing spending or permanent tax cuts, Davis said then, the state could face massive deficits as future revenues returned to normal levels.

In fact, however, Davis and lawmakers quickly agreed to spend about $8 billion of the windfall on ongoing programs -- tax cuts, education and health care primarily -- and when revenues did return to normal, the state had an $8 billion "structural deficit" that was papered over with bookkeeping gimmicks and loans in the ensuing three years. It leaves the state with an immense ongoing deficit and equally massive debts.

No wonder he wants to shift the topic from his own performance to the VRWC. Posted by Orrin Judd at August 20, 2003 10:29 AM
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