Solving the Budget Crisis is Like Living Through “Groundhog Day”
I had a sense I was in the movie “Groundhog Day” at the Milken Institute State of the State conference in Beverly Hills yesterday. Each year it seems experts at the annual conference are discussing how California can right the ship and solve the state’s fiscal problems. Different actors but the same play over again.
The morning panel session called Time For Change: How to Reform the State’s Budget Process featured an all-star cast. Former Governor Pete Wilson shared the podium with Treasurer Bill Lockyer, Former Assembly Speaker Bob Hertzberg, State Controller John Chiang, and California Finance Director Mike Genest.
Solutions were familiar as were objections to proposed solutions. Differences were aired. There was no lightening strike solving the budget crisis. However, some interesting points were made.
Lawsuits Add to State Budget Woes
Another day, another lawsuit and another potential hole in California’s already leaky budget.
It’s looking ever less likely that the budget numbers will hold up until June 30, the end of the fiscal year. That means legislators are looking at a potential repeat of this year’s long and ugly budget revision battle, with even fewer choices available.
This time it’s the California Redevelopment Association that’s taking aim at the state’s spending plan. In a suit filed Tuesday in Sacramento Superior Court, the group is arguing that the state’s attempt to grab more than $2 billion from local redevelopment agencies to help balance California’s budget is unconstitutional.
If a judge agrees, the state is going to have to find $1.7 billion this year and another $350 million in 2010-11 to replace that redevelopment cash. And given California’s shrinking revenue numbers, that extra money isn’t likely to be there.
Why the Bad Economy Is Good for Whitman
I’m sure she isn’t this callous. But, if I were Meg Whitman,
I’d be rooting hard against a quick economic recovery.
Why? Over the past couple of weeks, I’ve had conversations
with California fundraisers and donors from across the political spectrum. They
all said the same thing: no one has any money. And donations to campaigns and
causes of all kinds are way off. Gavin Newsom’s recently publicized
difficulties in turning President Clinton’s endorsement into a big fundraising
score are only one example of this trend. Raising money for politicians is
very, very difficult right now. Estimates that the 2010 governor’s race could
be a $500 million campaign are way too high, I’ve been told.
It’s Time to Get Down to Business in Los Angeles
More than 400 business, labor and community leaders will descend upon Los Angeles City Hall this Thursday morning with a unified message: It’s time to get down to business. Now facing 12.7 percent unemployment and a half billion dollar budget deficit, we must focus 100 percent on new and collaborative actions that will spur our economic recovery and usher in an era of fiscal responsibility.
The L.A. Area Chamber has published a 16-point advocacy agenda recommending concrete steps that will create good-paying jobs, protect taxpayer money and increase desperately-needed revenue for the city without raising taxes. These are common sense priorities that will focus business and government in Los Angeles on the most important job today: economic recovery.
Last week, the City Council took important steps forward on two of these key priorities — pursuing another round of business tax reforms and exploring the creation of a DWP ratepayer advocate. Our call for the City to require an Economic Impact Analysis on major legislation is also gaining traction. This is important progress, and I applaud the Chamber members who have been assisting us in advocating for these initiatives and many others.