THE TRUTH ABOUT…The fiscally unsound 2005 state budget.
The 2005 budget was fiscally responsible and balanced.
As California’s Finance Director, Tom Campbell crafted a $11.7 billion budget that contained significant borrowing and increased general fund spending at record levels. Chuck DeVore voted for the budget, which the nonpartisan Legislative Analyst’s Office projected would lead to multibillion-dollar operating deficits, even in a best-case scenario.
Campbell “Conceded That The Budget Contains Significant Borrowing.” “Tom Campbell, Schwarzenegger’s new finance director, conceded that the budget contains significant borrowing. But he said there wasn’t anything deceptive about it.” (Gary Delsohn, “Plan Relies Heavily On Borrowing,” Sacramento Bee, 1/11/05)
California’s Official Nonpartisan Fiscal And Policy Advisor: “We Project That Multibillion-Dollar Operating Deficits…Will Persist Throughout Most Of The Forecast Period.” “Even assuming continued steady economic growth, we project that multibillion-dollar operating deficits (that is, annual shortfalls between revenues and expenditures) will persist throughout most of the forecast period. Eliminating these shortfalls will require significant actions. Beyond this, an economic downturn or even sharp slowdown sometime in the next several years would add several billions of dollars to the projected shortfalls, and while this is not our baseline forecast, it could always occur.” (“California’s Fiscal Outlook: LAO Projections 2005-06 Through 2010-11
Chuck DeVore voted for Governor Schwarzenegger’s 2005 budget. (Roll Call Vote
DeVore On The 2005 Budget: “This Budget Has No New Taxes And Fully Funds Road Building. The Democrats Wanted Billions More In New Taxes And Spending And A Bigger Deficit. Republicans Won.” (John Gittelsohn, “The Weekly Juice: O.C. Dissenters No Barrier For Budget,” The Orange County Register, 7/10/05)
Chuck Devore’s GOP Colleagues Criticized The 2005 Budget Saying That It Failed To Address The Overspending Problem. (Alexa H. Bluth, “Governor Caught In Spending Trap,” Sacramento Bee, 8/14/05)