Friday’s San Diego Union Tribune editorial revealed some of the budget reforms Governor Arnold Schwarzenegger is supporting in the state budget negotiations. The editorial said the inside look was provided by a party to the discussions. If correct, then the governor is standing behind some real reforms to the budget process.
As also stated by the Union-Tribune editorial, the sales tax increase that has been discussed in the budget negotiations would be a mistake for the state economy. However, focusing just upon the reforms, if implemented, they would be a step toward ending California’s boom and bust budget cycles.
The reported reforms are designed to take political wiggle room out of current spending rules, establish a rainy-day fund with strict requirements to release the funds tied to provisions provided by the Gann spending limit passed by voters in 1979; and allow for gubernatorial authority for mid-year budget corrections, including the power to suspend cost-of-living increases for state programs during revenue shortfalls.
Tough stuff.
I have been involved in a number of efforts to try and rein in or control spending in California that have been defeated by lackluster enthusiasm from some supporters of spending controls. Governor Pete Wilson’s Proposition 165 in 1992 and Governor Schwarzenegger’s Proposition 76 in 2005 were both defeated, and we are now sitting on a $15.2 billion deficit.
Recalling the old saying that the perfect is the enemy of the good, those who support spending controls must take this opportunity to finally get good spending reforms in place.