PANAROMA CITY, Calif., Nov. 9, 2007 (PRIME NEWSWIRE) -- As a result of poor fiscal management, government overspending and inaccurate revenue projections, Gov. Arnold Schwarzenegger has been forced to ask state departments to reign in spending and prepare for future budget cuts.
Democratic leaders, who prefer to seek new revenue in the form of tax hikes and new or increased "fees," met the request for across-the-board reductions, reported to be as much as 10 percent, with resistance.
However, objective analysis of the state budget shows that revenue growth has exceeded population and inflation growth over the past two decades. In fact, the FY 2007-08 budget, passed with the support of Republicans, is the largest state budget ever, and $46 billion more than the FY 2000-01 budget. That represents a 33% jump in state spending compared with an 11 percent increase in population and average annual inflation of 2.85 percent during the same period.
The Libertarian Party of California in August issued a statement warning legislators in Sacramento that unless things change the budget crisis will continue to "to spiral out of control." The Libertarian Party of California advocated that the state adopt a part-time legislature, a zero-based budgeting approach, and unlock Constitutional spending mandates. But to date, none of those recommendations has come to fruition. The state is now faced with a looming $11 billion budget shortfall.
Kevin Takenaga, chair of the Libertarian Party of California, today issued the following statement:
"Who didn't see this budget crisis coming? Obviously our shortsighted legislators and governor didn't. Some very large financial institutions are suffering from multi-billion dollar mistakes related to mortgage-backed securities, and a few CEOs have recently paid with their jobs. However, when the legislature and governor make similar fiscal mistakes, they keep getting reelected and the taxpayers suffer.
"The fact that politicians in Sacramento promised more than they could deliver is nothing new. Assembly Speaker Fabian Nunez has said that reducing state spending is not what Californians want. Well, if he's so sure, I have a challenge for him: Allow taxpayers to deliver their state tax obligation voluntarily.
"If Speaker Nunez is right, then revenues won't suffer because Californians will send their hard-earned dollars in exchange for government services But if he's wrong, as I suspect, and revenues do decline, then the legislature should reduce spending accordingly to reflect the wishes of the people they serve.
"I again urge anyone fed up with government overspending to send a strong signal for fiscal sanity by contributing to and voting for Libertarian candidates. They are the only ones who will resist the political pressures threatening to bankrupt California and they can be counted on to protect the vibrant and entrepreneurial culture we hold so dear."
About the Libertarian Party of California
The Libertarian Party is America's third largest political party, founded in 1971 as an alternative to the two main political parties. The Libertarian Party of California has more than 50 public officeholders statewide. It also publishes the weekly Libertarian Perspective, an op-ed column authored by writers who strongly believe in freedom and individual liberty. Libertarians are socially tolerant and fiscally responsible; believe in personal freedom in both social and economic spheres; and in government small enough to protect those freedoms. For more information, visit the party's Website at www.ca.lp.org.