Earlier this week, Assembly Democrats unveiled their budget blueprint of liberal
spending and higher taxes, which they ironically call their California Jobs

In reality, they proposed the "California Red Ink Budget" because that’s
really what it would produce ­ more government spending, increasing debt and
higher taxes that would hit working Californians especially hard.
Considering our accumulated deficit, and the fact that we have borrowed from
over 700 internal accounts, as well as our local municipalities, the plan is
one of the most irresponsible budget proposals that I have seen in my time
in Sacramento.

On the spending side, the Democrat plan rejects the tough cuts proposed by
the Governor, or any substitutes that are necessary to close California’s
$19.1 billion deficit. It instead relies on massive new borrowing and tax
increases that will push our state even closer to the brink of financial

As Vice Chair of the Assembly Committee on Public Employees, Retirement and
Social Security, I am particularly troubled that the Democrat plan
completely ignores our looming pension obligations. We all understand that
unfunded liabilities will put taxpayers on the hook for billions more in
future payments to retirees.

Before I was elected to the Legislature, I spent more than 30 years working
in corporate finance and banking. I reviewed many tough budget choices as my
customers dealt with cyclical economic realities. I know that when our
state is facing a triple header of massive deficits, high unemployment and
mountains of expensive accumulated debt, that the only way to dig out is to
reduce expenses and reprioritize needs. To stay in business you must plan
for the future, not merely hobble by day-to-day.

The heart of the Democrat plan is the creation of a so-called $10.1 billion "jobs fund" by "securitizing" $8.7 billion from the California Beverage
Recycling Fund and another $500 million from the Disability Insurance Fund.
They propose to spend these additional borrowed dollars on so-called "jobs
investments," which is code word for subsidizing government and so-called
green jobs while creating new spending taxpayers can’t afford.

If the proposal were truly about job creation, Democrats would begin to work
on the structural issues, rather than creating more uncertainty in our tax
system. Suspending business tax incentives will deter investment in
California, and raising taxes in a recession is a job killer. Their plan to
impose a new tax on oil production in California will not only lead to
higher gas prices, but it will also result in the loss of 10,000 jobs
according to a study by a former Legislative Analyst. If you regulate or tax
an item you will get less of it ­ including employment!

By following President Obama¹s bloated, big government economic stimulus
ideas, relying on "free money" to fill the gaps, the result in California
will be no different than we experience at the national level ­ exploding
deficits, new giveaways for special interests and no progress in actually
stimulating the economy.

Hard-working and entrepreneurial Californians create jobs. The best thing
government can do is untie the noose around the necks of California’s
employers by reducing regulation and offering lower tax options. The answer
to our unemployment problem is making our economy more competitive so we can
encourage employers to expand and return to our Golden State.

California is facing a $19.1 billion budget deficit today ­ and projected
multibillion-dollar budget deficits for as far as the eye can see. The
gimmick-filled, Democrat Red Ink Budget that fails to bring spending in line
with revenue and doesn’t account for our future mounting state obligations
will do little to alleviate the problem.

The Legislature has overspent and over-borrowed for far too long and we have
little time or room to maneuver. Only when we face the challenges honestly
will we make any progress towards getting California’s finances back on
track again.