- Yesterday at a rare, joint meeting of the California State Senate and Assembly, lawmakers were treated to a admonishment by state finance officials about the dire circumstances facing the State of California. It’s a bad situation, made worse for every day that action isn’t taken. The question is whether the Democrats who dominate the legislature now truly understand the gravity of the situation and are ready to take a reasoned approach to making significant cuts in state government – we’re talking about ideas like eliminating functions of state government
- I figure that every time I write about the state budget, I should go find some other Agency, Department or program in the budget that should be abolished. So I went onto the California State website this morning, and it took me about a nano-second to find one: The California Housing Finance Agency. This Agency is burdening the state with costs associated with hundreds of state employees and is in the business of redistributing wealth. With our state’s fiscal situation at a crisis moment, let’s collectively decide that state government should get out of the business of social engineering home ownership opportunities. A critical look at everything state government does currently is needed, and Democrats need to swallow the tough pill – state government is going to do less with less.
- As a conservative Republican, I am not really excited about the impending Presidency of Barack Obama. His view of a more expansive role for the federal government at the expense of the freedom and liberty of Americans is a throw-back to Jimmy Carter. That said, with the news today that President Bush is going to sign-off on a $15 billion taxpayer bailout for U.S. Automakers has me, frankly, looking forward to a rapid end to this President’s term. George Bush has been a disaster, and it is embarrassing to me, as a Republican leader, that the President of my party would agree to use federal tax dollars to bail out U.S. corporations. We have a bankruptcy system in America for a reason – to allow businesses, large and small, to reorganize under the auspices of the courts. Maybe the “Big 3” restructure and reorganize in this process, or maybe they don’t, and one or all of them cease to exist. Life will go on. But since when should a Republican President be signing off on the idea that there is a “national responsibility” of all Americans to subsidize private companies? This on the heels of his administrations immoral "bail out" of Wall Street. Maybe when Bush retires to his new home in Dallas, he can spend some time reading some Friedman, Smith or Locke.
- Hopefully Senate President Darrell Steinberg and Speaker Karen Bass have gathered Democrats in a room and created their "OK, we can’t raise taxes or borrow more money, so what do we cut before the money runs out and decisions get made for us" Working Group…
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December 9th, 2008 at 12:00 am
There you go again, Jon, off the rails to the far right. In case you don’t know, the CalHFA sells bonds and pays the principle and interest from the proceeds of the mortgages they fund. No taxpayer money is involved. So if abolished the savings to taxpayers is – are you ready – $0. Now that should put a giant dent in the 10 – 20 or so billion dollar hole in the state budget. Way to go, Jon! On your comment regarding our new President, personally, I wish him well and I hope that he is able to solve the current credit crisis and get our country back on track. I take no comfort in the prospect that he will fail because if he does this nation will have a very deep and tragic depression. I think all Americans should get on their knees every day and pray that Mr. Obama will succeed.
December 9th, 2008 at 12:00 am
Ok, Bob. CalHFA is not a good example because it is essentially fee for service. No General Fund money goes to it.
But I think the overall point is still valid. In a $144 B budget that has seen tremendous growth (even when accounting for inflation and population growth), there is waste and duplication that we cannot afford and must dig in and eliminate.
Let’s take DMV. There are no General Fund dollars involved here, but when I pay my fees for license and registration the money that leaves my bank account doesn’t really care if it goes into a general fund or a special fund. The point is that it is not in MY fund.
The DMV model for licensing and registration millions of drivers and cars is essentially a 19th century model. If we had just a little technology applied to DMV, would we really need 175 field offices? If a private business were to take on the responsibility for licensing and registration, etal, would they find a better model and do it for less than $1 billion a year? I think so.
I think that the state bureaucracy is oriented to saving itself and not giving taxpayers the best value possible. It doesn’t mean that the bureaucrats are particularly awful–it is their nature. We need policy makers that will cut through all that and bring us the best values we can get. Instead we get proposals for more taxes or more borrowing.
December 9th, 2008 at 12:00 am
In Jon’s defense, I agree that the California Housing Finance Agency should be abolished EVEN THOUGH it is funded by participants’ mortgage payments rather than tax dollars.
In the first place, it duplicates services that are already provided by tax-paying businesses in the free market.
In the second place, it distorts the market price of real estate and lending services, to the detriment of tax-paying businesses.
To the extent that this agency provides services to state employees that are part of their compensation, it would be more honest, more efficient, AND MORE POPULAR to simply provide money instead.
It is also critical to note that programs such as this one ultimately create liabilities for taxpayers, just like Fannie Mae and Freddie Mac. Those liabilities may seem only hypothetical in good times, but they can be very expensive in bad times.
State government needs to get out of the business of providing services that are better provided by the free market.
December 9th, 2008 at 12:00 am
So Tom, which ones? I await your expertise in trimming the budget to bring it into balance with state income.
December 10th, 2008 at 12:00 am
Can I play? Alcoholic Beverage Control has 16 licensing offices. Let’s just have one office and send all the cash savings back into the general fund. I know that those offices are paid for by fees, but the impact of alcohol is felt in many budgetary categories. Let the fees pay for some prisons and health costs.
There is a long way to go, but there is plenty of bureaucracy to cut.
December 10th, 2008 at 12:00 am
Bob, let a blind man swing an axe and pretty much anything that the blind man lops off is an area that should be cut. They problem is that you give these guys in Sacramento one dollar and they spend ten dollars while coming back to us demanding more. We can give these clowns our entire paycheck and that would not be enough.
So Bob, when will this spending stop? How much is enough?? Will you ever come to a point where you believe they have taken enough of our hard-earned money??
December 10th, 2008 at 12:00 am
Commissars and socialists do not give up quickly….your asking the wolf to protect the chickens in this budget mess…if you review the fall of the Berlin Wall and the horrid political and economic oppression of the citzens of Eastern Europe….I just think it will take the citizens of California to take back their FREEDOM from the Sacramento legislators and government worker kabal….peaceful, of course, but give me an alternative except on this flowery pap floating on FLASHREPORT.ORG
December 10th, 2008 at 12:00 am
Please. A government worker cabal? All of the government workers I’ve known over the years are smart, hard working and care about their jobs and doing them well. It’s a shame to read the vitriol poured over the civil servants by many who post comments on this blog.
December 11th, 2008 at 12:00 am
Bob Evans…..I have never met a government worker worth his bloated pay, spiked pension, outrageous overtime, fancy state car, exotic trips and seminars. I once was audited for sales taxes in my business….it cost me dearly in CPA fees and weekends on my time to get the records in order for the audit….they found nothing wrong….then they said…I guess will audit you personally for that is where the infractions are located….well, more CPA fees and weekend prep. work….they found a $14.44 error and were so embarassed they apologized all over the bldg. to me…..I could go on and on about air quality, zoning, police and other regulatory nightmares, if you wish….any person in California who thinks the government workers are not the ruling class is an out and out fool. They eat citizens for breakfast!!!