Just as they did so when they defeated the Reiner Initiative in 2005 and rejected Gray Davis’ tripling of the car tax, California voters once again rejected calls for more taxes in yesterday’s statewide special election.
The writing was on the wall from early on – Rasmussen Reports indicated that 73% of Californians opposed income tax increases and 69% opposed sales tax increases. In addition, 69% of respondents believed that major cuts in government are the way to balance the budget, while only 16% opposed them. Given the voter registration statistics in this state, those response rates constitute a solid consensus across party lines and a clear message that it is time for the politicians to offer a new direction for California.
Even in the face of adversity, with our legislators facing another multi-billion dollar deficit, there are some simple steps that can be taken to rebuild trust with the people of California.
Step 1: We Must Achieve Stable Funding For The Government We Actually Need
Our elected officials need to finally accept that the laws of economics trumps the laws of politicians and that for too long the California economy has been battered by their public policy. The result has been over 100,000 Californians leaving California each year, along with businesses, jobs and tax revenue.
Indeed, according to Art Laffer and Stephen Moore, “from 1998 to 2007, more than 1,100 people every day including Sundays and holidays moved from the nine highest income-tax states such as California, New Jersey, New York and Ohio and relocated mostly to the nine tax-haven states with no income tax, including Florida, Nevada, New Hampshire and Texas. We also found that over these same years the no-income tax states created 89% more jobs and had 32% faster personal income growth than their high-tax counterparts.”
Our legislature and governor need to learn that lesson and they need to make California competitive again by allowing our business community to flourish not flee. We need to lower tax rates and regulations so that jobs can be created in our state not Florida, Nevada, New Hampshire and Texas.
Step 2: We Must Be Serious About Government Reform
Last year, state government issued a hiring freeze yet 2,000 new employees were hired- obviously the definition of “freeze” is a bit more “slushy” in state government.
To illustrate the current problem, the state commissioned 2005 California Performance Review found that, “there are more than 300 boards, commissions, panels, task forces, committees and other appointed bodies. These entities are so scattered and numerous that arriving at a firm number is nearly impossible.”
Can our elected officials rightfully ask Californians to pay more in taxes when they can’t even answer how many people they have working for them or how many boards and commissions are operational? Our state elected officials must do better than guesswork and sloppy accounting before asking for more money out of the pockets of California’s working class.
The recommendations from the performance review alone would have saved $6 billion a year. Between 2005 and 2009 that would have been 4 years x $6 billion which = $24 billion in over all savings. Our current budget deficit: $15 – $21 billion. California taxpayers can do that math. It is time for the legislature and the Governor to do the same.
Step 3: Transparency, Transparency, Transparency
Each Californian should not be expected to make complex budgetary decisions just because the legislators don’t want to do the heavy lifting. While voters struggle to make ends meet, politicians continue to make deals with government unions and special interests that dwarf the incomes of hard working Californians who are forced to pay for those deals.
To remedy these problems, elected officials should be do better than the backroom negotiations and locked-in, locked-down midnight budget dealing that has soured Californians’ mood and faith in their officials. Our officials should hold town halls (virtual and/or real), communicate via talk radio, broadcast, in print and use other marketing strategies to communicate directly with the public. If Californians knew what occurred in the smoke-filled rooms, and were exposed to the fraud and waste in state government, they would be better able to make informed decisions.
It is time to change that dynamic and shed the light of day on all aspects of Sacramento – not from within, but from without.
None of these steps are extraordinary. Indeed, the answers to our current problems lie in the solutions to our past problems. That is because the paths we walk today are well worn. Also well worn is the confidence of our voters in state government. It is time we honored their choice and truly changed directions in California once and for all.