Bob Fraas sent this item below to me and suggested I get it out to the community for your thoughts on how to fix the state’s deficit. Be sure to contact Arnold and tell him.  He can be reached through his web site at http://gov.ca.gov

A Message From Governor Schwarzenegger 

As you know, the state is facing a tough budget situation. Yesterday I presented a budget plan that includes 10 percent across the board reductions because we are facing a $14 billion deficit. The problem is not one of revenue, it is one of spending.

While revenues are flat, automatic formulas are increasing spending by 7.3 percent.  Even a booming economy can’t meet that kind of increase. Tax increases are not the solution to this problem, fundamental reform to California’s budget process is.

California has long had a dysfunctional budget structure. It is an issue I have tried to address several times in the past. The first year I was in office, I tried to fix the system.  I tried to get the Legislators to pass a Constitutional amendment to limit spending, but it didn’t pass.  Then in 2005, I tried to convince the voters to pass a Constitutional amendment to control the budget, but that failed too. 

The good news is that with tough times also come historic opportunities. In my State of the State Address this week I proposed a Constitutional amendment called the Budget Stabilization Act which will make sure our spending is tied to our revenues. It would trigger lower funding levels if deficit opens up during the year. It will not let us spend all of that money that rushes in when the economy is good. Instead, we would set some of that good year money aside for bad years. 

I need your help to solve this problem and to bring stability and predictability to California’s budget system - without increasing taxes. Together we will bring lasting change to our state.

Take a few moments to send a letter to your legislators today, ask them to support my plan to bring stability back to California’s budget process!

Thank you for your support.