Sure, it seemed like the Governator was on the ropes after the voters soundly rejeceted his ballot initiatives earlier this month; but, never count Mr. Universe out.

This from the SacBee:

Legislative Analyst Elizabeth Hill said she believes the state will end the current year with more than $5 billion in reserve, which Schwarzenegger and the Legislature could then use to cover a projected gap between expected revenues and the level of spending required by current law in the fiscal year that begins next July.

Hill's forecast shows that the ongoing budget shortfall - which Capitol insiders call the "structural deficit" - will likely shrink to $4 billion for the next year or two before declining steadily to almost nothing at the end of the decade.

"By the end of the forecast period," Hill wrote, "the state will have just about grown its way out of its structural shortfalls." …

If Hill's forecast is accurate, Schwarzenegger will be able to propose a budget in January that includes no new borrowing, does not raise taxes and funds all state programs at projected levels for the following year. He appears to have enough money at his disposal to fund schools at or above the level required by the state constitution, including the first funding for an expansion of after-school programs mandated by Proposition 49, a ballot measure he sponsored in 2002 before running for governor.

Doing all that, however, would leave state spending on a path to outpace the growth in revenues by about $4 billion the following year, creating a new shortfall.

Now it’s time for an A-HA! moment: Spending more money than is coming in is bad; cutting spending to live within one’s means is good. It’s so simple even a body-builder could understand.

The best way to do this is to pass a Taxpayer’s Bill of Rights (TABOR). This common sense amendment would: 1) limit the growth in state and local spending to the growth of population plus inflation, 2) ensure that a portion of surplus revenue above this amount is invested in emergency and budget stabilization funds but with the majority returned to taxpayers, and 3) require voter approval for tax, fee and spending increases above the allowable limits or any weakening of the law's limits.

With an effective TABOR in place, California could plan for a stable growth of government consistent with the growth of the state economy. In other words, if the Governator continues with his pro-growth agenda, and keeps taxes low (thereby growing the tax base), then the resulting influx of revenue wouldn’t be sucked down the proverbial bureaucratic black-hole of government spending.

AH-HA!

If Arnold is able to continue leading like a fiscally fit governor, California just might have a chance; his next move, however, must be a TABOR.

Then again, why waste time on California when it’s going to fall into the ocean soon anyways.