Let’s have a Clear Election on Taxes
Can Proposition 25 be used to place a tax increase on the June special election ballot? Joel Fox argues today (January 13) that it cannot. I think it can and should.
Proposition 25 allows the budget to be passed by a majority vote of the legislature. It does not change the requirement of a two thirds vote to increase taxes. Placing the question of increasing taxes before the voters is different; the voters not the legislature will be increasing taxes.
Gov. Brown is unwilling to cut the budget by $20 billion plus, the kind of cuts that are necessary to balance the budget without a tax increase. Instead he has a number of questionable cuts (like Medical that may depend on a favorable Supreme Court ruling) and Schwarzenegger-style funding shifts (like transferring First Five money and Proposition 63 money to the general fund).
And none of this will work without about $12 billion in additional revenues that Brown can only get by extending the 2009 car tax, sales tax and income tax increases. And that requires a vote of the people.
Taxpayer Groups Resist Governor’s Tax Plan
The Howard Jarvis Taxpayers Association hosted a taxpayers’ summit yesterday in Sacramento and, along with other state and local taxpayer groups, presented a united front against the proposed tax increases and extensions in Governor Brown’s budget.
Anticipating a well-funded campaign by public sector unions in support of the tax increases, HJTA president Jon Coupal argued that a vocal and concentrated effort could still defeat the taxes. Pointing out that the last six tax increase measures on the state ballot were defeated, Coupal said supporters of the tax measures could outspend opponents by ten to one and still lose. Public employee unions are expected to contribute millions of dollars to pass the tax increases, if they qualify for the ballot.
Before there is an election campaign over taxes, the legislature must put the tax measures on the ballot. State Republican Party official and publisher of the FlashReport website, Jon Fleischman, indicated that his survey of the Republican legislators showed no support to move the tax measures forward. He noted that all Republican legislators who voted for the tax increase in 2009 were no longer in the Capitol.
State must protect itself by reforming public pensions
During his inaugural address, Gov.
Jerry Brown urged legislators to leave their political comfort zones, unite as
Californians, honestly assess our budget deficits and make the tough decisions
required for the long-term good of California.
There is no better issue to
demonstrate a welcome bipartisan resolve than reforming California’s state and
local public employee pension systems.
With projected state and local
unfunded retirement benefit liabilities as much as $700 billion, state leaders
cannot make a serious impact on our fiscal health without substantial,
fundamental change in these far too generous benefits.
LA Mayor’s Race Already Getting Started
With still more than two years left on Los Angeles Mayor Antonio Villaraigosa’s term, the race to replace him is beginning to pick up. One indication is a dinner event I attended this week organized by well-known Los Angeles publicist, Michael Levine, founder of Levine Communications Office to introduce LA City Controller Wendy Greuel to an eclectic but interested followers of the local political scene.
The current controller and one time city councilwoman from the San Fernando Valley is considering a run for the mayor’s post and has been encouraged to run by many associates.
Greuel was peppered with questions throughout the evening on issues of city policy and politics from the movie producers, radio reporters, restaurant owner, chef, business executives, attorney and others who made up the twenty attendees.