Over the next few months, I have to do something I’m dreading, something I’ve never done before in my life: raise money (for a global conference on direct democracy in San Francisco this coming summer).
My instinct, as a thrifty person (my wife would say cheapskate), is to ask for very small amounts of money for very specific costs. But when I talked to friends who raise money for a living, their advice is just the opposite: I should ask for more than I think I can get. They argue that people won’t take you seriously unless you ask for a ton of money.
Which brings me to Gov. Schwarzenegger. He hasn’t unveiled his budget yet, but recent reports suggest his administration is seeking $8 billion to forestall cuts in important human services programs and perhaps to cover additional costs the state may incur as a result of federal health insurance legislation.
Given the state’s budget troubles and the need for such programs, Schwarzenegger’s request is appropriate. But the question is: is it enough?
The answer here is: No.
If I were the governor, I’d ask the feds to cover the entire budget deficit — $20 billion. He’d have a strong case, on multiple grounds.
First, Federal mandates – particularly court demands on prisons and other programs – are a significant factor in the state’s budget problems.
Second, It’d be good for the economy; much of the impact of last year’s federal stimulus was blunted by cuts and tax increases in California and other states. Greater federal assistance for state and local governments would prevent a similar blow to the economy this year.
The best argument for more aid than Schwarzenegger is requesting is that the state is a net donor to the federal government. In other words, Californians, for the past two decades, have subsidized other states.
It’s fine to be a donor state when things are going well. But when California’s in need, it’s entirely fair for other states to pony up more to help out our state. If you help out your neighbors in good times, it’s only fair that they help out when you’re in a bad way.