Governor Jerry Brown’s campaign to pass Proposition 30, a nearly $50-billion tax increase, released its first ad on the Internet.
The campaign opposed to the tax initiative (of which I am a part) issued a “Fact Check” on the ad, featuring critical comments from news reports from around the state. Read the Fact Check and comments as the ad is broken down into its key assertions.
As Wyatt Buchanan’s column in the San Francisco Chronicle was headlined: “No “T” word, dubious claims in Gov. Brown’s ad for Prop. 30”, 7/17/12)
Here’s the ad—piece by piece—with comments: “After a decade of gimmicks and deficit spending, California was on the brink of fiscal insolvency. “
“Then Governor Jerry Brown took office. He cut phones, cars, travel budgets, and state commissions.”
The cutbacks did not provide any real savings. “Among Brown’s first acts after taking office in January 2011 was ordering state workers to hand over tens of thousands of taxpayer-funded cellphones and halting the purchase of new state cars — cutbacks that barely dented the deficit but were symbolically potent.” (Nicholas Riccardi and Chris Megerian, “Brown stymied by same budget dysfunction that plagued predecessors,” Los Angeles Times, 5/16/12)
“For the first time in California history he vetoed the budget and led $16 billion in spending cuts”
A few days after vetoing the budget, the Governor signed another sham budget that was $16 billion in deficit. (Ben Adler, “Calif. Budget Deficit Nearly Doubles To $16 Billion,” NPR , 5/14/12)
The budget increased $5 billion, or 5.6% this year. “The $91.4 billion general fund passed with relative ease on Friday is not shrinking, though. That figure is 5.6 percent larger than the previous year’s budget. That represents a nearly $5 billion increase from fiscal year 2011-12…” (Michael Gardner, “State budget includes cuts, but isn’t shrinking,” San Diego Union Tribune, 6/16/12)
“California’s bond rating is now positive”
California has the worst rating of any state in the country. “In February, Standard & Poor’s changed the state’s outlook to positive, which means the rating could be upgraded, but California still has the worst rating of any state in the country. (Wyatt Buchanan, “No “T” word, dubious claims in Gov. Brown’s ad for Prop. 30,” San Francisco Chronicle, 7/17/12)
“And state spending’s at is lowest level since the 1970s”
The Governor’s budget is $5 billion larger than last year and nearly six times larger than the 1978-79 state budget (California Department of Finance)
“We’ve made progress, but we still have very serious budget problems in California. We simply have to take a stand against further budget cuts for schools or for our public safety. To do that, we’re going to the people.”
The $50 billion tax hike scheme provides no new money for schools and instead will be used to pay down pension debt. (“California’s Pension Tax: Jerry Brown’s tax increase won’t finance better education,” Wall Street Journal, 4/22/12)
“The plan asks the wealthiest to pay their fair share”
California’s top individual income tax rate is the second-highest in the nation. (“The Facts on California’s Tax Climate,” The Tax Foundation)
“And asks everyone to do their part”
California’s statewide sales tax rate is already the highest in the nation. (“The Facts on California’s Tax Climate,” The Tax Foundation)
“It will help bring California’s budget back into balance after years of gimmicks and deficit spending”
The Governor has relied on gimmicks and rosy projections to pass budgets. “It was just a gimmicky guess based on a short-term revenue surge – so shaky that the bankers from whom the state needed billions of dollars in short-term loans wanted “triggers” for automatic spending cuts should revenue fall short.” (Dan Walters, “Jerry Brown’s budget gimmick,” Sacramento Bee, 11/18/11)
“For every dollar of new revenue the plan makes three dollars in spending cuts”
“The proposition actually requires no cutting in spending and significantly increases revenues. The Department of Finance estimates that the increased taxes will generate at least $47 billion over its life span, and by no means are there plans to cut $141 billion in state spending.” (Wyatt Buchanan, “No “T” word, dubious claims in Gov. Brown’s ad for Prop. 30,” San Francisco Chronicle, 7/17/12)
“Money raised will be audited every year to make sure it’s being spent wisely”
State spending is already audited and examined through offices such as the Bureau of State Audits and the independent Legislative Analyst Office. These reviews have not stopped wasteful spending.
“We can’t keep cutting schools and expect our economy to grow”
Increasing taxes on all Californians and small businesses will hurt the economy
“We’re not offering any kind of panacea and we’re not going to get there overnight”
Brown has promised to fix the budget since he announced his candidacy nearly 2 ½ years ago. “By making the tough decisions now, we can get through this crisis leaner and more efficient, poised for a comeback that will lead to a whole new period of prosperity. That’s what drives my candidacy. But it’s not going to happen overnight or with empty promises…” (Jerry Brown, “Jerry Announces!,” www.jerrybrown.org , 3/1/10)
“But it is time to take a stand to protect our schools and public safety”
The $50 billion tax hike scheme provides no new money for schools and instead will be used to pay down pension debt. (“California’s Pension Tax: Jerry Brown’s tax increase won’t finance better education,” Wall Street Journal, 4/22/12)
“Let’s take a stand, take a stand, take a stand, take a stand California”
“Join me in getting our state back on track and investing in our common future”