Is there a Gay Marriage Stimulus?
The California Supreme Court has just ruled, 4-3, against California law that bars same-sex marriage. This is a profound moral and personal question for people, and I respect views on both sides. (To put my own bias on the table, my reaction to the ruling was to feel joy for people who may now be able to marry those they love. The right to marry seems to be crucial to any notion of individual freedom).
But moral choices have economic dimensions. And one question the ruling triggered in my mind is economic. I don’t mean to be crass, but could California profit through the legalization of same-sex marriage? Would the state become a draw for gay couples? Would those couples bring more wealth to the state, start more businesses, add to the tax base? Or do they consume services that negate that effect?
The Deukmejian Gambit
The key to Gov. Schwarzenegger’s new budget plan might be
called the Deukmejian Gambit. And throw in some Jerry Brown, too.
A short history….In 1983, Governor George Deukmejian faced a
large deficit, although smaller in proportional terms than the one faced today
by Gov. Schwarzenegger. Deukmejian put forward a plan that included no tax
increases. There were the usual howls and protests. Other ideas were floated,
including—get this one—creating a state lottery to generate funds. A few
years later a state lottery was created and now this governor wants to borrow
against it to raise immediate cash.
Finally, a deal was struck between Deukmejian and the
legislature. A 1-cent sales tax increase would trigger if there was a shortfall
of tax receipts at a certain time.
State Deficit Requires that Legislators Make Responsible Choices
Day after day, we see the spending-induced budget deficit grow in California. As the year began, it quickly rose from $14 billion in January to an estimated $17.2 billion today, and who knows where it will be by the time the budget is due (though rarely delivered on-time) in June. The need to fix the budget is urgent, and our state legislators need to work with the Governor to address the problem before it is too late. But it needs to be a thoughtful discussion, and one that does not place the burden of additional taxes on hardworking small business owners and families.
There are some in the legislature that are chomping at the bit to raise taxes to cover this massive budget gap. But how would you go about generating $20 billion into the state coffers? It would look something like this: each family would have to pay $1,100 in additional taxes, the state sales tax would have to increase by two to five cents, and property taxes would also go up.
UC Regents and Students Debate Tuition and The University’s Future
Yesterday, the UC regents reluctantly voted to increase tuition by 7%, the 8th increase over the past 10 years. Greatful that the Governor supported education and included $98.5 million to restore most of the UC budget cuts from January, the regents and students were passionate about the need for the legislature to support this.
So on Wednesday at UCLA, the regents and students had an emotional and spirited debate about Jefferson, democracy, an educated citizenry, economic reality and the responsibility of the State to support public universities, and the future of UC.