Many observers including this one thought that maybe
California was ungovernable and
unfixable. After tossing out a
Democratic Governor, Gray Davis and installing an actor pretending to be a
Governor, Arnold Schwartzenegger, the
state experienced massive deficits, declining services and became an overall
economic and fiscal disaster. There seemed
to be no hope.
In 2010 the voters turned the state over to the Democrats, electing former Gov. Jerry Brown to another term in office and throwing out so many Republicans that they gave control of the state to the Democrats. Conservatives howled that this would lead to even worse conditions, with rising taxes and massive economic problems. Instead here is what is happening.
|Assemblyman Robert Blumenfield (D-Woodland Hills) said he’s thrilled about the state's budget surplus. “We’re not framing the debate around what to cut,” he said. “We’re making choices about what kind of investments we want to make.” (Rich Pedroncelli / Associated Press / July 5, 2012)|
State coffers contain about $4.5 billion more than expected in personal income tax payments. Nearly $2.8 billion of it arrived April 17, the third-highest single-day collection in
history, according to government figures. California
Business taxes have also rebounded and are likely to be $200 million ahead of projections.
How can this be?
California raised taxes
and that was supposed to be the death knell for the state, with businesses and
high income people leaving the state.
Instead the economy has rebounded, as evidenced by the large increase in
income tax revenues.
So what will Conservatives say, the ones who condemned Mr. Brown and his policies? They will say nothing. That’s all they can say. Of course had Mr. Brown been a Republican all the Very Serious People (as Paul Krugman has designated them) would be gushing their praise for his fiscal management. So the problem with Mr. Brown is not his policy, it is his party.