Michael Tomasky
Tuesday 24 November 2009 20.14 GMT
guardian.co.uk

And if California slides into the ocean...

Comments 137

The terrible news from this state, which last week announced an obscene-bordering-on-pornographic 32% tuition increase at state universities and colleges, continues. Today's Sacramento Bee reports that the state's debt burden is way out of whack:

But after an economic collapse, estimates now show that debt service could consume as much as 10 percent of the annual general fund budget by 2014-15 – an "unprecedented" ratio, according to the Legislative Analyst's Office.

The latest debt warning comes weeks after lawmakers and Schwarzenegger placed a new $11.1 billion water bond on next November's ballot. Backers of the measure say the state desperately needs a water system overhaul.

Until this year, the state had not spent more than 5.7 percent of its general fund on debt, according to Department of Finance records dating back to 1976. The ratio now stands at 6.7 percent.

Treasurer Bill Lockyer warned in a report last month that a 10 percent debt ratio "would require cutting even deeper into crucial services already reeling from billions of dollars in reductions." Fiscal conservatives warn that it also increases pressure on lawmakers to raise taxes.

Well, duh. No kidding. Taxes should be raised. And not only in California. I don't know if you've been following some of blogospheric conversation about Bruce Bartlett's new book, but Bartlett, a conservative, writes of America's need to come face to face with its demands for state services and the obvious implication of those demands, which is high taxes.

California voters approved these initiatives in better economic times. So fine; in some ways it's just natural that some expenses be delayed during tough times. The water system, meanwhile, ages, unaware of the state's tax receipts and GDP one way or the other.

One hope I had for the Obama era was that maybe we'd all grow up and have quasi-substantive debates about these things. Well, if anything, this "conversation" in America has become even more immature and batty than it was before. It ain't Barack's fault. But there's very little hope in America of having a serious conversation about anything.

It's awfully pretty out here, though, on the plus side. And I started reading Plouffe's book on the plane. Mildly underwhelmed so far, but I'm still in 2007. Does it get more interesting as the primaries actually get under way?

http://www.guardian.co.uk/commentisfree ... rsity-debt