GOP gubernatorial hopeful Steve Poizner’s new plan to chop taxes, slash welfare and Medi-Cal spending and build up a $10 billion state budget reserve deserves cheers from voters across California, whether they’re Republicans, Democrats or independents.
Not over the details of the plan, necessarily, since there’s plenty for people to dislike in the economic blueprint the state insurance commissioner laid out Monday.
But every voter in the state should be thrilled whenever one of those-who-would-be-governor lays out a detailed plan, numbers and all, and says “Here’s what I’ll do if I’m elected.”
There’s not a politician or voter in California who can argue with a straight face that state government is running so well no changes are needed. OK, then, it’s up to the candidates for governor to get the debate started.
Think of it as the answer to an essay question for would-be political leader: “If you were governor, what would you do to improve California? Include details and examples. Neatness counts.”
That’s what Poizner is doing with his “10-10-10 Plan,” which includes a 10 percent cut in state taxes, a 10 percent reduction in spending and that $10 billion reserve fund.
The proposed tax cuts were released last month, but Poizner let his geek flag fly Monday, pointing happily to charts and tables he says prove that his supply-side plan to cut income, corporate and capital gains taxes will actually bring in more revenue to California by making the state more attractive to job-creating businesses.
“We’re being analytical here. This is not a hope,” he told reporters on a conference call Monday afternoon. “This is based on results in other states.”
Based on his experience in reducing costs at the Department of Insurance, Poizner also is convinced that over two years he can cut $3.85 billion from the $26 billion cost of actually running the state government.
He wants to save $1 billion in prison healthcare costs by applying the existing Medi-Cal standards of care and cost to the prison system. Poizner also sees another $1.5 billion in savings available by converting the entire Medi-Cal system to managed care – HMOs – instead of the fee-for-service model now used by about half the recipients.
Probably Poizner’s most controversial proposal is trimming $3.3 billion from state welfare by cutting the CalWORKS lifetime limit to two years, down from the current five years, strictly enforcing the federal work requirement and penalizing the entire family when that work requirement isn’t met.
“We have a choice to make. There are no unlimited pots of money,” he said. “Every dollar we spend on the welfare system is one dollar that comes out of the UC system” or other state programs.
Poizner called the tax and budget plan “the centerpiece of my campaign,” and said it was needed “to create the right type of environment to bring jobs back to California.”
The insurance commissioner was realistic about the problems his program faces.
“Not everyone is going to agree with me,’’ he admitted. “But I’m not trying to build a consensus of 100 percent support.”
There will be plenty of questions about Poizner’s plan.
— Given the decidedly mixed history of supply-side economics, where lower taxes purportedly mean more revenue, is there a chance tax cuts would make the state’s bad financial picture even worse?
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Since California has been trying to move more Medi-Cal recipients into managed care since Pete Wilson was governor in the 1990s, what’s different now?
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Does the plan balance the state budget on the backs of those Californians with the least, while giving a financial boost to those with the most?
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Is it reasonable to call for a $10 billion reserve in the face of continuing demand for state services?
But those questions are a good thing, a focus for the type of debate on California’s future that voters deserve to hear during the governor’s race.
The candidates should be arguing about taxes, welfare, medical care, prisons and spending, instead of complaining about who voted when and who gave how much to whom.
More to the point, at least Poizner and his GOP rival, Tom Campbell, have plans out there they’re ready to defend.
Compare that to Democrat Gavin Newsom, whose website says little more about the state budget than “Fundamental reforms are needed.”
Or Republican Meg Whitman, who’s long on big ideas – eliminate 40,000 state jobs, cut spending by $15 billion, dump all regulations that limit job growth – but short on specifics.
Then there’s Attorney General Jerry Brown, the Democratic frontrunner, who will barely admit he’s in the race, much less suggest what he’d do in a third term as governor.
But when the rest of the gubernatorial pack takes their expected shots at Poizner’s plan, they should remember that it’s not enough to Just Say No. If they have a better idea, let’s hear it. And soon.
John Wildermuth is a longtime writer on California politics.