All three of these are successful executives who have direct and hands on experience in how to manage a dynamic and large business. These skills are exactly what we need right now in Washington. I have been CFO for both private and public companies over the last decade and know what it takes to figure out what cuts need to be made – It is hard and takes determination. I am confident that they will take the time to figure what programs should be eliminated and will push to get expenses ROLLED BACK to align with our revenues. They will push to have funded programs not forever be part of the budget as they are today, but rather reviewed on a regular basis to ensure the program is still accomplishing its goals and that it is still worth funding given the current economic and political situation. That is how the most successful companies are managed – it is called “bottoms up” budgeting.
We must reverse the idea that spending should be independent of revenue. While I understand that some of program cuts that they will suggest will be painful, we must do it and do it now. We have completely lost sight that the money we are spending is borrowed. We all understand what too much debt can do to companies and our households – our country and California are no different – we just haven’t felt the impact yet. We all know there are too many programs that just don’t make sense anymore – maybe they did at one point, but not in today’s environment, given our current economic position.
Finally like great business people, they will focus on incentives and programs that will create the environment which will grow our country’s revenues allowing us to both judiciously increase our spending, but also begin paying down the national debt.
These concepts are a fundamental premise of managing the financials of a household, a company and must become the way we manage our state and country.