Propositions 57 & 58: Borrowing Against the Future

By Ash Bhatt

Gov. Schwarzenegger's so-called Balanced Budget Act is not a solution to the current budget crisis -- it will put the state even deeper in debt.

California has a proud tradition: We borrow money long term in order to invest in projects that also benefit us long term. Since 1849, the California Constitution has prohibited bond measures like Proposition 57 that allow long-term borrowing just to balance the budget in the short term. This tradition has allowed the state to be visionary rather than short sighted. Fifty years ago, we built the nation's first highway system and, over the past century, we developed the finest public university system in the world.

On March 2, Proposition 55 continues this tradition, borrowing money to invest further in our schools where they need it the most. As a member of the State Assembly, I will work to get another bond measure on the ballot, investing in high-speed rail service that will bring Bay Area residents to Los Angeles in less than three hours. This is in keeping with our vision and our tradition. By contrast, Proposition 57 endangers that.

Bundled together with Proposition 57, Proposition 58 is being called the "Balanced Budget Act." But this is a cynical attempt to paint over the facts. Borrowing $15 billion just puts off the day of reckoning. More importantly, it will cost us billions of dollars more in interest payments to service this debt. Proposition 58 also claims to put aside $5 billion to protect us against future deficits. But half of that protection will itself be borrowed!

We need a different kind of leadership in Sacramento. While three of my opponents support these measures, we must not throw up our hands and abandon our traditions. Working people in the state deserve the best schools, affordable housing, and good healthcare. But we must not panic in times of financial crisis. We need to look carefully at our priorities, moving away from excessive spending on prisons and toward promoting new jobs and industries that will expand the tax base.

District 20 is at the crossroads of these opportunities and challenges. We must not let ourselves get sidetracked by so-called "Economic Recovery" and "Balanced Budget Acts" that do nothing but limit what will be possible tomorrow.