California faces a cash flow crisis in a little over 100
days.
The state’s bills come due on June 16, and if we
don’t have enough money to pay them, we will be forced to
make drastic cuts to the services that Californians care most
about. These cuts would force teacher layoffs and hospital
closures, take police and firefighters off the street, and scrap
important transportation projects. The time has come to put
partisan differences aside and work together to solve the
state’s financial problems.
As a lifelong Democrat, I am not going to agree with the
governor on every issue, but we both agree that Propositions 57 and
58 are the best solutions to get California on the path to fiscal
recovery.
Proposition 57 provides for a one-time, $15 billion, Economic
Recovery Bond to refinance past budget deficits while interest
rates are low. Financial counselors advise over-spenders to
consolidate their debt into a single loan at a lower interest rate.
This is how California families put their finances back in order
““ and it’s exactly what California must do.
Proposition 58 makes sure we never face a deficit crisis again
by requiring the Legislature to enact a balanced budget and
prohibiting any future deficit financing. It also creates a
“rainy day savings account” for paying the bonds off
early and helping the state through any future economic
downturns.
Together they are the California Balanced Budget Package. Both
need to pass to fix California’s fiscal problems. If only one
passes, neither goes into effect. Without their passage, larger
budget cuts will be necessary and California’s already low
credit rating will be put under increased pressure.
Wall Street has spoken: Propositions 57 and 58 are sound and
responsible plans for California to pay its bills and get back on
the right track. Moody’s, one of the foremost credit rating
agencies and a crucial player in the state’s finances,
affirmed that passing Propositions 57 and 58 will be a step in the
right direction for California’s fiscal outlook.
This isn’t about Democrats or Republicans ““
it’s about doing what is right for all Californians. Voting
yes on Propositions 57 and 58 will avoid drastic cuts to the
services we care about ““ education, health care,
transportation projects, police and firefighters. Propositions 57
and 58 must pass for California’s working families and for
our future.
Please join me and Gov. Arnold Schwarzenegger, the AFL-CIO and
the California Chamber of Commerce, the United Farm Workers and the
California Farm Bureau, the California Teachers Association and the
California Taxpayers Association, Democrats and Republicans alike
in voting yes on Propositions 57 and 58 on March 2.
Westly is California state controller.