Well, true to form, the Democrats’ budget delay tactics continue
this year. The leaders of both the Senate (Steinberg – D Sacramento)
and the Assembly (Perez – D Los Angeles), refuse to accept the
Governor’s budget, but are offering no real alternatives. Reportedly,
they have agreed on a few budget reductions but are no where near how
to fill the gaping $19B budget hole.
One rumor is that a delay until we run out of cash in the fall, might
play into the "dysfunctional" Legislature theme, forcing a
"bi-partisan" agreement (read: raise taxes). Another rumor is that the
Democrats want to convince voters that 2/3 vote requirement to pass a
budget is the problem, and they are willing to inflict budget pain in
the schools and on the streets, or through IOU’s when funding stops, to
make their point. Not surprisingly, there is a measure on the ballot in
November that would allow voters to decrease the budget vote
requirement to a simple majority (50% + 1).
Without the 2/3 vote requirement, 50% (plus 1) of the Legislators could
pass taxes without the input of 50% (minus 1) of the rest of the state.
Why would you want taxation without representation?
To date, the Governor and Republicans have held firm on "no new taxes"
but who knows what a long stalemate will bring? Some of the hardest hit
areas of the state, the Central Valley farming communities, reeling
from the water shut-off that has decimated the region, could demand
relief. School funding and union scare tactics, could also create chaos
for taxpayers statewide. There are better solutions.
First define the problem – we are de-facto bankrupt. We cannot merely
cut or tax out of this recurring deficit situation. Just like a large
corporation, we must reform the way we do business in California.
- Reduce
spending (in departments across the board if necessary, rather than
picking winners and losers). I’m convinced staff knows where to save
money. - Halt state government hiring – attrition will help reduce staff levels.
- Continue to negotiate unsustainable pension agreements that were approved in 1999.
- Establish
a rainy day fund to begin saving when our revenues start bouncing back,
to reduce debt and reserve for the next downturn in the economic cycle. - Ensure
accountability for the dollars we are spending, specifically on large
projects. I’m amazed at the lack of accountability at the state level
as to risk analysis and project level tracking (i.e. Transportation
projects, IT, High Speed Rail. - Implement performance-based budgeting in lieu of zero-base, rewarding cost-saving measures.
- Reduce regulation to encourage private sector job growth California.
- To
truly spur employment in those areas of the state with 30% unemployment
– ensure California has a steady, reliable supply of water.
We don’t need more taxes to feed the beast -we need reform and
oversight. In other words, we need Democrats in the Legislature to act
responsibly. Understanding the potential "chess" strategies behind the
rhetoric this year is key.
Assembly Republican leadership is meeting in
Sacramento on a regular basis to try to move things along. We can make
long overdue fixes to get out state back on track and Golden again, but
we must not allow "dysfunctional by design" to rule the day.