Investors have said that Californian gubernatorial Democrat candidate, Jerry Brown is a man with a too-optimistic plan for cleaning up the mess that is the state of California’s finances.
The next governor is set to face a whopping $10 billion budget deficit, which makes finances a key issue for running candidates. Soon to be ex-Governor Arnold Schwarzenegger has closed a $ 19 billion deficit gap this month with lawmakers, but the states financial woes are by no means over.
Brown’s opponent, former eBay chief Meg Whitman has outlined her financial plan in a 40-page booklet, whereas Brown, currently the state’s attorney general, has a 9-point plan which is covered in an 8-page document.
Brown plans to begin the budget process much earlier than is usually the case, as well as engaging lawmakers individually on matters of budget, as opposed to the usual practice of just talking to leaders of legislature. Brown says what will result will be a consensus-driven budget in California.
Brown’s plan has less-than impressed the municipal debt market, who are intently watching the campaign because California is a huge consumer of municipal bonds. Analysts have called the plan too-rosy, and “touchy-feely”, lacking in details and a futile attempt at financial planning.
California is the world’s eighth largest economy, and is sharing its financial woes with other US states and world economies who are also trying to deal with sagging revenues and burgeoning deficits.
Whoever gets the vacated governor’s seat, one thing is for certain, and that is California will be running on very low funds.