California’s dysfunctional state government and our chronic budget crisis are beyond inexcusable. The majority of voters are justifiably angry about taxes and elected officials seem to be unable to effectively plan for the state’s fiscal future. That sentiment is reflected in the latest polls showing Propositions 1A-1E headed for defeat. But taking out our frustrations on these initiatives is the kind of self-flagellation that will deepen the crisis and prevent the reform we dramatically need.
As I wrote last month, the Los Angeles Area Chamber of Commerce — together with nearly every business organization in the state — is urging support for the package of state budget initiatives on the May 19 special election ballot. There are no perfect short-term fixes for the disastrous financial condition that California is in, but these ballot propositions go a long way toward avoiding a fiscal catastrophe and putting in place the kind of reforms that will avert a similar crisis in the future. Most notably, Proposition 1A will significantly reduce spending by establishing a long-sought spending cap and requiring the stockpiling of revenues from good years in a substantial “rainy day” fund to mitigate future economic downturns.
These reforms are just the beginning of what is necessary. But they represent an important first step because we all know that controlling expenses and having a savings account to draw on during hard times is essential to every budget, including our family budget at home.
Both proponents and opponents of the May 19 ballot propositions agree that the state’s fiscal condition is a mess and must be dramatically reformed. Some opponents urge the voters to teach the state a lesson and if necessary, force a bankruptcy. Other opponents believe that the current budget cuts have been too dramatic and the solution is to put new, permanent tax increases into place. The L.A. Area Chamber Board of Directors cannot embrace either of these two recommendations. We understand and share the anger of the voters, but we do not believe that either of these alternatives is in the best long-term interest of our state, its residents or its businesses.
By saying yes to Propositions 1A-1F, we can begin the process of fixing our broken system and hold our politicians accountable. Please join us in spreading the word to vote YES on Propositions 1A-1F on May 19.