ARNOLD RIGHT ABOUT PRIORITIZING STATE'S NEEDS.

Byline: Tony Strickland

IN real life, you must get your priorities in order. When the choice is between paying your mortgage or buying a new television set, or between getting your child medical attention or going to a ballgame, the decision is easy. For real people, the home and family come first, period.

Real people don't postpone important decisions because of annual schedules. When difficult times demand immediate action, we make necessary decisions without delay.

But state government is not run by real people. It's run by politicians. And too many of our political leaders are operating under the assumption that we will tackle this budget situation on the same leisurely pace as in years past, with the governor's first budget outline released in early January, followed by several months of delay and avoidance from the Legislature.

But Arnold Schwarzenegger is exactly right when he says that our state government must prioritize its true needs - right now. And the most pressing need is addressing its budget deficit immediately, before expenses become insurmountable and we cannot pay state bills or care for the needs of the state's residents.

California faces difficult times that demand immediate action. So I commend Governor-elect Schwarzenegger for his plans to convene a special session of the Legislature immediately upon taking office. No delays, no finger-pointing, no business as usual. He knows that the time to start tackling the state's most pressing needs is now.

We have too many bills due. Most analysts agree that the budget signed by Gov. Davis was at least $8 billion out of balance the moment it was passed. Although the state tried to balance the current fiscal year's budget by selling bonds to cover the remaining shortfall, a Sacramento circuit judge ruled that a $2 billion bond to borrow money from the state employees' pension fund is in violation of state law.

But that was just a portion of the bonds the state planned to sell to cover its expenses through the next fiscal year. Larger bond sales are also being challenged in court, so it is more likely another $10.7 billion worth of deficit-reduction bonds cannot be issued without voter approval. Added together, the state of California is already potentially facing a budget deficit of more than $20 billion.

The state budget deficit is an impediment to a healthy California economy. A healthy economy means more - and better - jobs for hard-working families. When families are better able to make ends meet, they are happier and healthier, and they also can find more discretionary income to make purchases they once postponed. They might even be able to purchase a home.

Think about what all this can do for state government revenues. New or increased salaries mean more in income taxes, and new purchases mean more sales and property tax revenues to the state to cover its expenses.

The governor-elect is right. The state budget situation is worsening as you read this. Thank goodness we're getting a leader who understands and can apply a businessman's urgency to the situation. I see great change in the way California government does its work as a result of the recall election, and that change is for the good. We can balance California's budget without raising taxes. And in doing so, we can send a message that our state is open for business once again.

We must not waste time in addressing the state's problems, which beyond the budget also include true workers' compensation reform, reducing the car tax, improving our transportation infrastructure, being proactive in anti-terrorism measures, and much, much more. I look forward to the special legislative session next month, and to working with Schwarzenegger toward returning California to its previous status as the Golden State.