Sounds of the 2008-08 California Budget Crisis 9:50 By 2008, California was in a budget crisis similar to the one in the early 2000s that led to the recall of Governor Gray Davis and his replacement by Arnold Schwarzenegger. In these clips we hear radio ads early in the budget process designed to press the legislature not to cut certain programs. Governor Schwarzenegger laments lack of spending priorities, raids on special funds, and lack of a rainy day fund. He indicates he is against a tax increase. Subsequently, after a long overdue budget, rumors appear that he will propose a sales tax increase. On a radio program interview, the governor retorts that charges that he has not been sufficiently focused on the budget is right-wing nonsense. He urges compromise. Schwarzenegger later did propose a tax increase but he could not get support from Republicans in the legislature. Although Republicans are a minority in the legislature, there is a requirement of 2/3 to pass a budget so the tax increase was defeated and a budget was signed without one. By late October, word was leaked that there would need to be a special session of the legislature since the newly-enacted budget was significantly out of balance. http://www.youtube.com/watch?v=1GjwYo56DUM
Prop 49: The 2002 Schwarzenegger After-School Initiative 03:21 In 2002, before the possibility of election via recall was under consideration, Arnold Schwarzenegger was considering a run for California governor. His advisors suggested he put an initiative on the ballot to introduce him as a political figure to California voters. The result was Prop 49, which earmarks by formula funding for after-school activities. (A good history of this episode can be found in Joe Mathews' book "The People's Machine, 2006.) Prop 49 was endorsed in 2002 by the California Teachers Assn. But when he was elected governor in the 2003 recall, Schwarzenegger did not keep a deal with CTA to fund education fully in the 2004-05 budget. As a result, CTA opposed Schwarzenegger during his 2005 "Year of Reform" campaign for 4 ballot initiatives, two of which were aimed at CTA. The teacher who appeared in the 2002 pro-Prop 49 ad seen in this clip thus appeared in an anti-Schwarzenegger ad in 2005. That ad is also shown. The sheriff of Orange County endorsed Prop 49 in the prop-49 ad. But as a portion of this clip shows, he was subsequently indicted for corruption and then resigned. The latest in the odd history of Prop 49 came in the much-delayed budget crisis deal of mid-Sept. 2008. As part of the budget compromise, elements are slated to be approved in a special election. Reports suggest that modification of Prop 49 is to be part of that special election. http://www.youtube.com/watch?v=7Yun5FlW4gQ
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