Much has been written about the contributions to public life of Johnny Mockler, who passed away last week. Punditry often focuses on his work in school finance and in particular the Proposition 98 minimum school funding guarantee that the voters approved in 1988. As an initiative measure it arose out of an inability by the […]
What a difference a year makes. California’s recent approval of Proposition 2 is already paying dividends. The Legislative Analyst’s new Fiscal Outlook shows Proposition 2 is doing what it was designed to do: capturing a run-up in unsustainable spikes in revenue, paying down debts and setting aside revenues for the next economic downturn so that education and […]
With all the talk about the property tax and who pays more, residential or commercial property owners, there is a more basic issue that is missed: Where does the money go? In the case of the income tax, we know which government gets the money: the state. But from the property taxpayer’s perspective, it is […]
The topic of conversation, lately, no matter who you’re talking to, seems to revolve around California’s budget nightmare and the trickle-down effect it has, starting from the top, the state, to the bottom, with municipalities. How did we get here and what drastic measures need to be taken in order to get our Golden State […]
As the press peels back the onion on the issue of budgeting practices and special funds, it is important to see why this is a contemporary problem and why it has not been the focus of anyone’s attention Conventional wisdom Our state budgeting practices have not changed since the 1970s. The state’s fiscal condition has always […]
The good old days of secret budgeting are back and the primary victim is a transparent government. There was a time, over forty years ago when the final state budget was written in secret. The final budget deal was hammered out in a secret conference held in the Senate Lounge. The bipartisan group that included […]
Once again the Legislative Analyst has pulled back the curtain on California’s budgeting practices, announcing last week that the state is likely to have a $3 billion deficit at the end of this fiscal year. This means we can expect significant mid-year cuts to education and social services programs under the budget “trigger” mechanism. That […]
It is now up to members of the
California Assembly to decide whether two of California Forward’s important fiscal
reforms will move forward.
Yesterday, the Assembly
Budget Committee approved SB 14
(performance-based budgeting) and SB 15 (multi-year
fiscal forecasting), which will bring a new budgeting system to California that
increases stability, focuses on program results and looks to the future.
In an era when more and more Californians are demanding accountability and transparency in government, our budgeting process has slid back into the cloaked era of the past.
Fifty years ago, the California budget was put together in a back room. Those in attendance included the Department of Finance representing the Governor; the budget committee chairs and vices chairs representing the legislative leadership; and the legislative analyst. The budget they created was then handed the legislature for approval and finally sent to the governor. These budgets usually garnered 2/3 of the legislative vote, and nobody knew what deals went into the process until after the governor signed the budget in question.
In the early 1970’s, a group of lawmakers revolted and pushed for a more open process. This led to more transparent and later televised legislative discussions that included the administration and legislative analyst.
When California Controller John Chiang decided on Tuesday that
legislators would not be paid, he did so by connecting two provisions in the
Constitution – one approved in 2004 (Proposition 58) that required budgets
to be balanced – and the other approved
last year (Proposition 25) that prohibited legislative pay if the budget
is not passed by June 15.
Many lawmakers have taken issue with the controller’s decision,
and some have threatened to sue to get their pay reinstated.
The dispute over what constitutes "fiscal balance" has been with
us for a long time, even before Prop 58. California’s state budgeting
process has always been based on an agreement between the legislature
and the governor about what fiscal balance means in a given year, with the Legislative Analyst’s Office (LAO) providing commentary.
That LAO commentary often deals with identifying
"threats" to fiscal health – sometimes through the courts – and the
ability of the administration to achieve savings in the adopted budget.