THERE'RE BILLIONS ALL OVER THE PLACE:

Why Arnold is unlikely to raise taxes and spending (Daniel Weintraub, October 19, 2003, Sacramento Bee)

If he's not going to raise taxes, then, what can Schwarzenegger do to balance the budget? He can start by cutting spending. While the Democrats in the Legislature will resist, Schwarzenegger can begin with about $2 billion in spending cuts proposed earlier this year by Gov. Gray Davis that were never enacted. He can probably credibly propose another $2 billion from his plans to cut waste and restructure government.

Schwarzenegger is also going to look to the federal government to reimburse California for some of the cost of providing services -- schools, health care, incarceration -- to illegal immigrants. And he wants to negotiate new deals with the Indian gaming tribes, allowing them more slot machines in return for a contribution to the state's general fund. These two sources could yield several billion dollars combined.

Finally, Schwarzenegger has said he wants to restructure the state's debt and seek voter approval for borrowing that Davis and the Legislature approved earlier this year, possibly in violation of the state constitution. Refinancing that debt over a longer period could provide short-term savings of as much as $2 billion annually.

People keep saying that Arnold can't balance the CA budget, but if Mr. Weintraub thinks he can then we do to.

Posted by Orrin Judd at October 19, 2003 10:57 AM