California — land of eternal youth, sunshine, orange juice,
palm trees and cheeky celebrities — is now a land of heartburn.
After supping on a bumper crop of the lotus of good intentions, the
Golden State’s inhabitants are going through a bad hangover.
Every two years an election rolls around and California’s ballot
abounds with initiatives (based on voter petitions) and referenda
(issues sent by the legislature to the voters). Most of these are
of the feel-good variety. Californians like to feel good about life
in general, so they tend to vote for these things without looking
at the price tag. Last November they voted for enough bond issues
to send the state’s indebtedness over the $100 billion mark once
all the bonds are sold. After all, who could be against highway and
bridge improvements, money for school construction, state park
improvements? Not long ago, actor Rob Reiner (“Meathead” of “Archie
Bunker” fame) promoted a measure to give free pre-schooling to all
youngsters. It was set to pass until Reiner illegally used some
state commission funds to advertise the scheme and nosy researchers
uncovered the fact that 70 percent all preschool age children had
parents who could afford to pay for the schooling.
Last week the Public Policy Institute of California released a
new poll showing that half of all the state’s adults now think
economic bad times are on the horizon in the coming 12 months.
That’s up from 39 percent just two months ago. On the “right
track/wrong track” question, 47 percent think California is on the
wrong track. That’s up from 37 percent two months ago.
Among likely voters, only 30 percent trust the state government
to “do the right thing.” Legislators and Governor Arnold
Schwarzenegger can take a bit of consolation from the fact that
this number is better than Californians’ trust in the federal
government, which is at 24 percent.
Pollster Mark Baldassare attributes these gloomy figures to the
stock market’s yo-yoing up and down, the housing slowdown,
stubbornly high gasoline prices and a plethora of news stories
about worries over the subprime mortgage market. These may have
something to do with it, but Californians need look no further than
Sacramento to find most of the troubles.
Part of the negativism is from buyer’s remorse (vote now, pay
later — and forever), compounded by the Governator’s rosy budget
scenario. With flair he unveiled a “balanced” budget in January. I
use quotation markets because it is balanced on a set of
assumptions about the behavior of the state legislature and federal
government that are unlikely to come true. At about that time his
trumpeters blew fanfares also over his new universal health care
coverage plan. He proudly announced it can be made a reality
without new taxes. Instead, physicians and hospitals will have to
pay a hefty “fee” based upon their gross revenue. It looks like
tax, walks like a tax — you get the idea.
Meanwhile, the legislature is occupied with a number of bills
that will turn the state government into a benevolent uber-nanny.
One bill will prohibit parents from spanking children under three
years of age. Another would levy fines for pet owners who do not
neuter Fido and Tabby. Yet another would prohibit smoking in state
parks and on beaches. Another would prohibit grocery stores from
using plastic bags. And how’s this for rich irony? One bill under
discussion would give each newborn child in the state a $500
savings account. Thus, a state that cannot balance its budget and
is billions of dollars in hock is going to encourage new parents to
teach their children to save by giving them $500.
Not to be outdone, the governor has proposed a five percent pay
increase for many on his well-paid staff. Ah well, spend as if
there’s no tomorrow, and maybe there won’t be a tomorrow. No wonder
Californians have changed from feel-goods to feel-gloomies.