No sooner had Californians approved the $15 billion economic recovery bond than there was talk among lawmakers on both sides of the aisle about spending some of the so-called "new" money. So reports Anthony York in the Political Pulse, a newsletter that tracks trends in the Capitol.

York's story resonates with anyone familiar with how business is done in Sacramento. Many lawmakers reflexively look for ways to snap up additional revenues and use them to finance their pet projects. That's one reason why the state finds itself in a deep fiscal hole.

When times were flush, during the early years of Gov. Gray Davis' first term, revenues grew by 25 percent, while spending increased by 40 percent. Instead of heeding the warning signs of a soured economy, the governor and the Legislature conspired to craft bogus budgets in hopes that revenues would surge to cover their fiscal chicanery.

Now, the state finds itself saddled with a structural deficit, estimated by the Legislative Analyst's Office to be about $15 billion, on top of the already accumulated $15 billion debt. As Sen. Tom McClintock, R-Thousand Oaks, never tires of reminding voters, California doesn't have a budget crisis; it has a spending crisis.

The fiscally conservative McClintock is exactly right. Had state spending increases been held to population growth plus inflation, California would have a surplus today instead of a massive debt.

Gov. Arnold Schwarzenegger defeated Davis in large part by promising to stop the spending binges and put the state back on a sound fiscal footing. To accomplish this, he put forth an economic recovery plan to pay off most of the existing debt and then prevent legislators from spending the state into oblivion. Which is why Schwarzenegger must insist that the bond money be used for debt retirement.

The governor shouldn't have any problem holding the line against profligate lawmakers who are yearning to blow some of that bond money. The most recent poll shows the Legislature's collective approval rating at 19 percent. While respondents vary in their grievances against lawmakers, the general consensus is that they duck the tough issues and allow problems to fester into full-blown crises.

California's fiscal crisis cannot be resolved with accounting gimmicks and rosy economic scenarios. The state has been living a fiscal lie for much too long. Rather than resort to one-time fixes that balance one budget at the expense of the next, the governor and Legislature must start making the tough choices to ensure the state lives within its means.

Having dramatically changed the political landscape in Sacramento, Schwarzenegger should seize the initiative anew by insisting that the days of deficit financing are over. His ability to build coalitions and his relentless optimism give him traction to get things done. He must make the most of this opportunity.