I promised some headline responses to the California special election. Here’s a sampling:

1. California Rejects Schwarzenegger’s Budget Measures — This just announces the results of the election.

2. California Confronts Growing Cash Crisis After Defeat — Governator Schwarzenegger says we’re going to have to cut, since the taxpayers voted against more taxes.

3. California legislative leaders: ‘We are going to cut’ — The people actually in charge of the budget say we’re going to have to cut. This is a little more meaningful than the Governor’s word.

4. California elected officials’ pay will be cut 18% — This is interesting. The taxpayers voted that they couldn’t get raises during a recession, not that they’d get a pay cut. Incidentally, this applies to future elections, not currently serving members.

For those feeling sorry for California’s elected officials, check out this tidbit from the last article:

Schwarzenegger is entitled to an annual salary of $212,000. The next governor will receive $173,840, which would no longer be the largest paycheck for a governor in the country. The current No. 2 in pay is the governor of New York, who receives $179,000.

Most state legislators currently are paid $116,208 annually in salary and $35,000 in per diem living expenses. The 100 lawmakers who will be elected in November of next year will receive the same per diem, but a salary of $95,291. Legislative leaders make more.

Even with the pay cut, California lawmakers will be the country’s highest-paid. The next best compensated are in Michigan, which pays legislators $79,650.

Once again, California isn’t exactly an expert on value. Our state legislators are the highest paid, and will remain the best paid even after the pay cut. I think there’s ample evidence that they aren’t the best legislators out there, either. On the other hand, why isn’t Michigan up in arms?

I still don’t believe that the magnitude of the problem is entirely clear to the state legislature. Our projected budget shortfall grows $2 billion every month like clockwork. When the ballot initiatives that were just voted down were originally constructed, they were supposed to be sufficient to plug a $6 billion hole, and the budget would be magically balanced. By the time the election actually rolled around, the hole was $21 billion. I do think that California is going to have to do something to raise tax revenue, but it also must cut considerably. Well, that’s assuming we don’t get bailed out or default.