Road to Recovery – Not a Zero Sum Game
While improving appearances on the financial front, albeit at the expense of higher taxes, California’s true recovery depends on increasing private sector employment. Publicly, Governor Brown and his GoBiz office have acknowledged as much; many of the employment damaging policies occurred prior to his watch. But how his administration moves forward will be extremely important […]
Gathering Votes for High Speed Rail: “You Can’t Always Get What You Want”
To quote a rock and roll classic, when trying to gather votes for a statewide project you can’t always get what you want. One should expect a few snafus when a project concept begins in the mid 1990’s and takes years to get a Legislative buy-in. But, with the contorted track of progress and even […]
Time for a Reality Check – California is Broken
Noted “straight talker,” State Treasurer Bill Lockyer, must be living in another California. In a recent Los Angeles Times editorial (“California Isn’t Broken”), he suggests that criticisms of California’s fiscal and economic problems are overblown. While I agree that the state will repay its bond debt, I strongly disagree that we are helpless victims of the recession. Our 12.4 percent unemployment, unfriendly business climate and runaway state spending must be addressed if we are to pull out of our financial abyss.
It’s time for straight talk and a reality check. Blaming the recent economic downturn for California’s woes ignores many of the deeper underlying problems.
Treasurer Lockyer quickly passes over the fact that California’s unemployment rate is the second highest in the country. Our state lost 1.2 million private sector jobs from October 2007 to October 2010. More than 141,000 people left California during a twelve month period in 2008-09 because they could not find work. Jobs and opportunity continue to disappear because of high taxes, costly regulations and job-killer policies.
Democrat’s Budget Delay a Case of Dysfunction by Design
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?
Democrat ‘Red Ink Budget’ – How to Kill Jobs and Move California Closer to Insolvency
Earlier this week, Assembly Democrats unveiled their budget blueprint of liberal
spending and higher taxes, which they ironically call their California Jobs
Budget.
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
insolvency.