Spending Limits Are Important, Just Ask Jerry Brown
As part of the budget negotiations, Republicans have asked that a spending limit be part of the ballot package to reduce future runaway spending. You would think they would get a sympathetic ear from Governor Jerry Brown.
Listen to what he had to say … a while ago, sure, but all the following are excerpts from his Second Inaugural Address, delivered January 8, 1979.
Why the anti-government mood? I asked this same question four years ago and now I believe I understand. Simply put, the citizens are revolting against a decade of political leaders who righteously spoke against inflation and excessive government spending but who in practice pursued the opposite course.
Brown echoed a theme we hear today: Live Within Our Means.
Government, no less than the individual, must live within limits. It is time to bring our accounts into balance. Government, as exemplar and teacher, must manifest a self-discipline that spreads across the other institutions in our society, so that we can begin to work for the future, not just consume the present.
Is Brown Losing the Future?
Gov. Jerry Brown has played the politics of this particular
budget about as well as possible – getting buy in from public employee unions,
bringing business groups to the table, putting Republicans in the difficult
position of denying voters a chance to weigh in on his plan.
But Brown, because of California’s
bizarre governing system, still hasn’t gotten his plan passed. And it may be
that the GOP blockade remains in tact. Or that any concessions he makes to
Republicans cost him critical support from unions and Democrats.
And in the process, he may be doing
serious damage to his future ability to move the state forward.
The core of
Brown’s political problem is this: he is being defined as a status quo
politician in a state with an unsustainable status quo.
Unintended consequences – Repeated attempts to boost sales tax collections hurt California’s economy and cost jobs
They’re at it again.
Lawmakers in California, in a desperate attempt to generate revenues are again seeking to force out-of-state retailers to collect taxes for online purchases made by California shoppers. If they are successful in passing this legislation, not only will they fail to raise even one more nickel in tax revenue, they will cost the state thousands of jobs.
It’s a bit complicated, but allow me to explain: California has a cutting edge industry of internet entrepreneurs called “affiliates.” You’ve seen “affiliates” while surfing the web: blogs and websites that provide “click through” ads to online retailers. If you click through and make a purchase, the affiliate gets a small percentage in payment from the retailer.
According to the Performance Marketing Association, there are nearly 25,000 California-based affiliate businesses that provide information to California consumers and improve the ease and thrift of their shopping experience online or with remote retailers and their catalogs.
What Happens When City Retirees Outnumber City Employees?
In the City of Los Angeles, the budget deficit for 2011-12 begins at $350 million fueled in large part by the rapidly growing cost of pensions and health care for retirees. Last week, Mayor Antonio Villaraigosa called for two significant reforms to keep the problem from getting worse. He called for raising the retirement age for non-sworn city employees to 65 and he urged the members of the Fire and Police Pensions Board to reject a 7 percent increase in the health care subsidy given to public safety retirees. The current health care subsidy for fire and police retirees is $1,025 per month and the 7 percent monthly increase would add another $4.8 million dollars to the City’s budget deficit. The Chamber and other business and community organizations joined the mayor in support of both proposals.
On Friday, the Fire and Police Pensions Board ignored Mayor Villaraigosa’s plea and thus added another $4.8 million to the City budget deficit. Put another way, the Fire and Police Pension Board forced the mayor and City Council to cut another $4.8 million in city services like street maintenance, libraries, parks and police and fire protection.
The City of Los Angeles has more than 30,000 retirees, nearly equal to the 32,000 employees on the active payroll. The City’s current pension plan coupled with annual cost of living increases for pensions and health care, make it impossible for the City to overcome its structural budget deficit without eliminating the public services that citizens pay taxes to provide.