A lot of us have been preparing for the day when the political and fiscal crises in California reached the point where substantive changes could be made. We may be getting close.
Based on the proclamations made Wednesday in Sacramento, it is clear that in terms of budget reform what the public wants also makes good policy, and that at least some political leaders are beginning to see the opportunity of the crisis.
The event, organized by California Forward, highlighted best budget practices from other states and the findings of in-depth public opinion research in California. Incoming Senate President Pro-Tem Darrell Steinberg (D-Sacramento), Sen. Mark Wyland (R-Carlsbad), Director of Finance Mike Genest, and Mike Rubio, chairman of the Kern County Board of Supervisors, described how they would like to see budget reforms advance.
Leon E. Panetta, co-chair of the bipartisan reform effort, ended the session by outlining the types of improvements that will be necessary to restore the public trust, and the consequences of failing that challenge.
“We need to enact the kind of budget and political reforms that will make it more difficult for leaders to avoid their responsibility to the state and to the people” Panetta said. “The goal has to be to restore the public trust, and try to put in place the rules and tools that hopefully can help produce that kind of change.
“Let’s be frank. There is no silver bullet, but if we can begin in an incremental way to change the way business is done in this town, then I think ultimately we can begin to move in the right direction. It’s not going to be a sudden miracle, but it changes the way government operates."
It is no great mystery what some of those changes should be. Earlier in the program, experts from the Pew Center on the States and the National Association of State Budget Officers highlighted how other states have resolved fiscal crises and enacted budget mechanisms that make it easier to control costs, improve results, and demonstrate value to taxpayers and voters.
The “best practices” also match well with what Californians say they want to see in terms of budget reforms. Public opinion researchers from Viewpoint Learning presented the results of daylong conversations with random samples of Californians. The public is willing to invest more in government, but only if they believe tax money is well spent, that it addresses the highest priorities, and that there is accountability for results.
The question then is whether the situation has gotten so bad that political leaders are willing to take the risks necessary to make improvements.
“We all come out of this last budget round rather bruised,” Sen. Steinberg said. “And more importantly, I know I come out of it with the absolute commitment that we are not doing this again, ever. We need to broaden the definition of reform to address more than the cost side, to get away from the ideology. I could say we have a revenue problem and Sen. Wyland here could say we have a spending problem. Maybe we have both problems. And maybe we can reconcile both by having a more intelligent discussion about what we want and need, how to pay for it and what outcomes we’re seeking in driving that public investment.”
Steinberg sees the wisdom of a budget process that sets priorities and is focused on improving results. He said the challenge will be linking the process reforms with a political deal that will resolve the ongoing deficit and allow the reforms to work moving forward.
Sen. Wyland agreed with the basic conclusion: “The budget system is dysfunctional. We need to spend one year of our session where all we do is the budget, because I think it’s simply impossible the way we’re structured now to have the time and energy of our members focused on what we’re doing to even have a chance to do the in-depth analytical work that would help us. I think if we had the time to focus on budget, you’d see more bipartisanship, because the reality is many of us do want the same things.”
From the local government perspective, Supervisor Rubio said the budget process can be structured to build agreement and improve results. County boards, he pointed out, have to simultaneously make policy and management decisions. They are responsible for overseeing the implementation of their own decisions – and they are pretty close to the public when they make a mistake.
Panetta closed the session with a candid assessment of the growing public dissatisfaction.
"We are truly at a crossroads," Panetta said. "Winning is more important than governing, today is more important than tomorrow, sound bites are more important than solutions and it’s easier to blame the other than take risks. We see the consequences of this. There is a paralysis that develops when those become the principle values that guide this town."
He outlined political as well as fiscal reforms that will be needed to enable leaders and help them make better decisions.
“We heard today from experts who know what real budget reform looks like, and how California can best change the system so the public can feel secure in the way public money is spent,” said Panetta. “That means transforming the budget system into a process that is stable, open to the public, and an accurate reflection of those policies Californians care about: good schools, a strong economy, social equity, public safety and environmental health.”
To advance a public debate on a better budget process, California Forward distilled previous research and recommendations into a set of budget principles that are available on its website: www.caforward.org.
Based on public discussions and comments gathered through a variety of forums – including Wednesday’s session in the capital – California Forward is developing a comprehensive proposal for Californians and their elected leaders to consider in the coming months.