Back in May, California had 6 ballot intiatives designed to fund the gap between state income and outgo, and 5 of them were heavily backed by the political class, the big newspapers, and the public sector unions. The sixth one limited elected officials' salaries.
Guess which one passed and which five failed. You got it.
Now, the political class is up in arms. They won't cut back anywhere. So California is broke and issuing IOUs instead of paying in cash.
Reason has piece by Matt Welsh that covers it pretty well:
"During the last two decades, the Golden State has been transformed from what was once known as the nation’s most anti-labor outpost to a state essentially run by public-sector unions. Nearly three in five publicsector workers are unionized, compared to less than two in five public employees in other states. The Democratic Party, which is fully in hock to unions, has controlled the legislature and most statewide posts, with the notable exception of the governor’s mansion, for more than a decade. That means more government workers, higher salaries, and drastically higher pension costs. "
Now, the public is rebelling, and its about time.
"California is the Ghost of Federal Government Future."
Is what has been happening in California something we can look for in the rest of the country? Well, consider this:
"The federal government is now run by a president and Congress more responsive to union concerns than any in at least two decades. The same bloat currently bogging down statehouses and city halls is being duplicated in boomtown Washington, D.C. President Barack Obama even brought Andy Stern in to help warn Schwarzenegger that federal stimulus money would not be disbursed to California unless the governor rescinded some proposed state job cuts. Though that threat was later withdrawn, Schwarzenegger at press time was pushing for a measly work force reduction of 2 percent."
So, what can we conclude?
"Faced with a political class that ignored bureaucratic inefficiency, that demanded higher taxes, that filled the newspapers with scare stories about people who will literally die as a result of budget cuts, the citizens of one of the bluest states in the nation collectively said we just don’t believe you anymore. If even California’s famous fruits and nuts can call the statists’ bluff, there may be hope for the rest of the country. "
Read the whole thing here.
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