EDITORIAL SMART MONEY ARNOLD TIGHTENS THE STATE BUDGET TO PAY FOR INFRASTRUCTURE INVESTMENT.THE state budget Gov. Arnold Schwarzenegger Arnold Alois Schwarzenegger (German pronunciation (IPA): [ˈaɐ̯nɔlt ˈaloɪ̯s ˈʃvaɐ̯ʦənˌʔɛɡɐ] unveiled Wednesday wasn't sexy. It's just a conservative spending plan with little drama. Indeed, if the 2007-08 California state budget were a Hollywood character, it would be the stuffy accountant trying to keep the frivolous ingenue in·gé·nue also in·ge·nue n. 1. A naive, innocent girl or young woman. 2. a. The role of an ingénue in a dramatic production. b. An actress playing such a role. from frittering away her money on lost causes and pretty toys. All of which is to say the governor is blazing a sane sane (san) sound in mind. sane adj. Of sound mind; mentally healthy. sane financial path for California. By eliminating deficit spending Deficit spending When government spending overwhelms government revenue resulting in government borrowing. deficit spending Expenditures that are in excess of revenues during a given period of time. (not to be confused with the ``structural deficit,'' which still exists), not raising taxes and keeping growth in spending modest -- just 1 percent -- he's getting the state into financial shape to make the deep investments in infrastructure that are badly needed. It's a smart approach, one that the Legislature would be wise to follow, because it sets the state up solidly to begin the re-investment in its infrastructure. The budget does include $3.4 billion in cuts or shifts of funding that will hit college students, teachers and welfare recipients. It's unfortunate that the folly of past lawmakers means services take a hit. But California's financial stability, both as a government and a people, requires the state to start investing in its infrastructure -- schools, prisons, waterworks waterworks: see water supply. , housing and roads, among other needs. These are all areas that have been neglected for decades, jeopardizing California's future health. Critics of the infrastructure bonds -- $43 billion passed by voters in November, another $43 billion proposed Schwarzenegger in his State of the State speech earlier this week -- characterize them as similar to credit-card debt. That's misguided thinking. This borrowing is just like a home mortgage -- a debt load on tangible assets Tangible Asset An asset that has a physical form such as machinery, buildings and land. Notes: This is the opposite of an intangible asset such as a patent or trademark. Whether an asset is tangible or intangible isn't inherently good or bad. that provide wealth and security today and for years to come. The governor's budget isn't the stuff movies are made of. It's just level-headed, down-to-earth smart thinking. |
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