California dreaming: Jerry Brown's deficit dilemma

When liberals find themselves in a hole, they keep digging


This is a rush transcript from "The Five," May 14, 2012. This copy may not be in its final form and may be updated.

GREG GUTFELD, CO-HOST: Logic says you can't dig half a hole. But once again, California Governor Jerry Brown proves logic wrong. Four months ago, he said the state was $9 billion in debt. Now, he claims it's $16 billion.

It takes a special guy to make you long for half a hole.

Now, Brown has defied logic before. No one ever thought he'd find work after his nutty ride as governor moonbeam in the '70s. Then he became mayor of Oakland, a city so bad it's best seen from Sky Lab.

And now, here he is captaining the Titanic that is California, a state so broke it may ask Greece for a loan. How did this happen?

Well, you can thank pension, orgies of spending and lots of regulations, businesses bolted, the state isn't making any money and the bureaucrats left the behind looted the joint. You remember Bell, California. Its payroll boasted seven-figure salaries with its manager Robert Rizzo getting $1.5 million for a year.

They were the kids trashing the candy store. Where is it headed? Well, if you're a lib, you keep digging. Under Brown, the state spent $2.1 billion more than expected. And that new bullet train requires spending $3.5 million every single day, including holidays and weekends if it's going to be done by 2017.

Yes, this is what happens when junkie gains control of the stash.

They can never quit their addiction to spending, only expand the dependence so all that's left is a deeper hole which now looks like an open grave.

KIMBERLY GUILFOYLE, CO-HOST: That was a little depressing.

GUTFELD: Depressing topic. I could do something on puppies if you'd like.

GUILFOYLE: That would be sweet and precious, versus California.

GUTFELD: They can't afford puppies.

All right. Dana, he did this, he announced the stuff via YouTube, which is an Internet destination.

DANA PERINO, CO-HOST: Thank you. I was going to call Al Gore to find out.

So, on the one hand, you can say, well, how innovative. The governor of California using new media and YouTube to get a message out to the people of California, that looks like soft lighting and the music. By the way, you're so in debt your children's future is not to be had in California.

I have a problem with this for one reason. I think that the media should have been allowed to ask him questions. Doing that is something done by dictators where you don't have to answer to the people. He's going to answer questions eventually but I think that was kind of a chicken move to do it by YouTube.


Hey, Bob, here's the Democrats, who control the legislature have resisted his cuts. She's actually trying to make cuts because he's probably responsible for the way that the state is now. What's going to happen?

BOB BECKEL, CO-HOST: Well, first of all, just keep in mind a couple of things, California doesn't have control over the JPMorgan, for example, does. Now, it doesn't have control over the whole national economy. It doesn't have control over trade with the Asia, which is a big part of its business there. It also does not have control of the tax receipts that are off by

$3.5 billion.

Now, I'm not saying that it's what is done here. But the legislature are a bunch of punks and cowards --

GUTFELD: Democrats.

BECKEL: That's right. And I say about them. They won't increase taxes and cut spending the way they should.

Brown is taking up for people who vote in November on a referendum. That's what he should do.

Look, the reality is, you're going to have to cut spending and you're going to have to increase taxes. It's as simple as that. Anybody who thinks you keep hearing those Republican, no more taxes, no more taxes --

GUTFELD: That's basically like I'm saying I'm only going to cut back doing drugs a little bit.

ERIC BOLLING, CO-HOST: They can't increase taxes anymore. California is 11 percent tax already.

This is what is happening. People and businesses are leaving California, they are going to no tax states like Texas. Last year, there was a 1 percent slide in the number of jobs that California created, versus people needing jobs. So they lost ground. They were the third worst in the nation. Texas was tenth best, because there is no state tax.

So, you can't raise the taxes. They need to be cutting spending. But they can't do it either. They can't seem to figure out they need to cut.

Therein lies the problem. Not a tax problem. It's a spending problem.

BECKEL: No, it is, too, a tax problem and it is a spending problem as well. California has expansive welfare system and very expansive border interdiction program. It also has a very expensive police force, state police force. It's got --

GUTFELD: Why is it expensive? It's expensive because they are controlling the till. That's why salaries in Bell. That's why these cities are declaring bankruptcy.

GUILFOYLE: They never met an entitlement they didn't like that. OK, that's the problem there. They spent $2.1 billion more than they were supposed to. So, it is a spending problem as well. Now he is saying that he's going to have to make cuts in the public education, in addition to increase taxes, the sales tax additional quarter percent.

So, you know, he's in big trouble there. I don't know who would want to be governor of California.

GUTFELD: I think that it would be bullet brain comes on yesterday and say, so, by the way, P.S., the bullet train, the high-speed train, not happening. And just take that of the table. Some sort of a goodwill gesture on his behalf in order to --

GUILFOYLE: Right. Bullet train to nowhere.

BECKEL: Businesses are leaving to go to Texas from California, it is true. But imagine, California is a wonderfully beautiful state. It's got the ocean.

Can you imagine going from Santa Barbara to Midland, Odessa?

GUTFELD: Let me put it this way. I grew up in California. It's really a depressing thing for somebody born in California not to be able to afford to live there. Even in your neighborhood where I grew up in San Mateo -- I can't afford to live in San Mateo.


BECKEL: Move to El Paso.

GUTFELD: I would love to live in Texas. It's the greatest state.


PERINO: Board your own plane and you can slide to Santa Barbara though the weekend.

BECKEL: Austin is a nice state.

PERINO: Or city.

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