It amazes me that there continue to be calls for raising taxes to resolve a state budget fiscal emergency that has been caused by OVERSPENDING. It also amazes me that hiking taxes continues to somehow be “on the table” in budget negotiations. Raising taxes in this situation should be a non-starter for two very basic reasons. The first of which is that while I admit that there is never a good time to raise taxes (Californians are already burdened with practically the highest tax burden in the entire nation), certainly hiking taxes in the middle of a recession has to be the stupidest idea I have over heard. The second reason is that raising taxes requires the votes of Republican legislators. What Republican, in their right mind, would respond to our state’s OVERSPENDING-CREATED financial mess by punishing taxpayers, and violating their pledge not to do so?
If there was ever a line-in-the-sand issue, this is it. In adverse times comes real opportunities for reform – and while many want that reform to take place in the form of a hard spending cap (good luck getting a real spending cap, including a requirement for a vote of the people to override it from the union-controlled Democrats in Sacramento), the real opportunity for reforming state government is forcing this OVERSPENDING problem to be resolved with MORE SPENDING CUTS than have been put on the table.
What kind of cuts have we not heard about? Where is the list of current functions of California government that are going to be ended< Where is a list, by agency and department, of CUTS IN THE STATE WORKFORCE? The salaries and benefits of state employees have to be the greatest cost to taxpayers, and while cuts are taking place in great numbers in the private sector (Home Depot announced today a cut of 7,000 employees, 3% of their workforce), where are similar types of cuts in state government?
There is a saying that says that it is a lot easier to create a government job or program that it is to get rid of one. Boy, is that ever the case.
That having been said, it’s time to ROLL BACK SPENDING to a previous year’s budget, whichever year would allow state spending to mirror current available state revenues.
While the political left in the legislature and in the media don’t want to acknowledge that it has been years of OVERSPENDING and growth in state government that have taken us to this point, Republicans in the legislature know it to be the case.
The number one impediment to getting our state government back on track are the massive public employee unions, and also a terrible system of labor agreements that prevent California government from mirroring the private sector in its response to this crisis. Because the labor union leaders are so emboldened (both by the size of their PAC bank accounts, and the force of law behind these contracts), there have been no significant concessions of any kind by labor in dealing with the budget crisis. Actually, instead you have some unions out suing to stop the Governor’s modest attempt to save some dollars with a two-day a month furlough for state employees, and now the state teachers union is out qualifying a ballot measure to raise the state sales tax.
Republican legislators should bring the unions to the table by insisting on real labor reforms such as perhaps ending collective bargaining for public employees, or how about a ballot measure that nullifies state union contracts in cases of fiscal emergency? And let’s not forget about the outrageous defined benefit retirement packages that also separate and elevate the privelidges of public employees over their counterparts in the private sector.
In closing, there are discussions about the need for a spending cap. We don’t have to negotiate for a spending cap, nor do we need to place one on the ballot. Republicans have the ability to impose a spending cap RIGHT NOW. With an iron-clad position of opposing REVENUE INCREASES for state government (whether from higher taxes, borrowing, or hocus pocus), the lack of money will impose a cap right now.
January 27th, 2009 at 12:00 am
John,
We all hate this, but…
Consider.
If the GOP say no to taxes now, for single year cuts this year – they last for one year. Or, until the Dems get a new flood of tax revenues.
If the GOP make a deal and get a Proposition for a Spending Cap, this becomes Constitutional! Solid, or as a union member asked me, “Do you mean forever?”
Can the GOP encourage the UNIONS to keep their cash machine out of the ballot? If they can be enticed by the sales tax, maybe. “Look at the candy, while we pull the rug out from under you.”
If not; they (taxes + caps) are DOUBLE BOUND ISSUES, one doesn’t pass without the other.
It is a new day, and this is an interesting spot the DEMOCRATS are in today.
What will they do?
What do they say…to a REAL offer of compromise?
Ball is in the Steinberg and Bass court…and the media is watching.
January 27th, 2009 at 12:00 am
Aren’t you guys wore out talking about the same stuff….you should be spending your time brain washing RINOS to repent for their sins of Globalism, doing a Lassie annually rolling over and supporting big state spending programs…nothing is more important than to expose political frauds, opportunists, stair steppers and betraying their fellow citizen….No taxes period!
January 27th, 2009 at 12:00 am
Spending Cap in 2003-04…the budget would be $117B versus the current $138B (2007-08)…plus we would have controlled spending, a reserve of $6B…and the unions, Democrats and the growth of government under control!
Is it worth 2-3 years of a sales tax????
An initiative that is atched to population and inflations numbers. NO, I saud NO legislature overrides – want to change it, take it to the peeps via ballot ONLY!
January 27th, 2009 at 12:00 am
I would also support putting McClintocks SB 269 from the previous session into the new budget. That might help us save some money.
January 27th, 2009 at 12:00 am
“…(taxes + caps) are DOUBLE BOUND ISSUES, one doesn’t pass without the other.”
This is CRITICAL!
January 27th, 2009 at 12:00 am
Do not expect much from the Republican sell outs….they are whimpering like dependant puppies just dying to get-a-long with their socialist buddies and be done with this infernal budget mess. If a Republican rolls over like Rin Tin Tin….recall…and a Proposition to roll back any passed taxes upon Californians…
January 27th, 2009 at 12:00 am
Eric,
You are dreaming, Democrats are not going to agree to a hard cap and the unions are not going to stay out. You have concocted a pie-in-the-sky scenario. Let’s be real, if the Democrats and unions agree to a spending cap it will have a hole in it the size of Senator Rico Oller’s spending cap that he passed around at the Capitol a few years ago.
The Democrats and unions are not stupid… they are not going to agree to 2-3 years of a sales tax increase only to hand conservatives the rope to hang them. Any Republican who believes that or votes for that is naive…this is no different than believing we can negotiate or reason with al Queda—it is not going to happen.
And consider this, if your spending cap is really a solid spending cap, then when it hits we will once again hear all the whining that we can’t do with less government. Why not just “get’re done” now and deal with the whining now rather than kicking the can down the road? Like Jon said, we can have the spending cap now if Republicans don’t flinch.
Like the Nike commercial, “Just do it!”
January 28th, 2009 at 12:00 am
Re: “GOP Can Impose A Spending Cap NOW – By Refusing Revenue Increases Of Any Kind”
Jon –
I think you’re confusing tax RATES with tax REVENUE. Reducing rates will usually increase revenue. Don’t we all want a reduction in tax rates?
January 28th, 2009 at 12:00 am
Howard Jarvis clarified Mr. Hogue’s issue 30 years ago… Jarvis said
tax limits were the ONLY way to control government Growth. “If you
let them have the money, they will find a way to spend it” he said
over and over. There will always be a loophole.
Howard Jarvis’ Answer: don’t send them the Money in the first
place.
Howard Jarvis was right then. His ideas are still sound today.
January 28th, 2009 at 12:00 am
I agree with Eric Hogue that a hard spending cap would be a good thing, BUT it is not likely to last “forever.” In fact, it may not even last a single election cycle, assuming that voters approve it in the first place. The unions will quickly place a misleading measure on the ballot to tinker with the cap in some complicated way designed to confuse voters. They will promise all sorts of things to gain support, but the inevitable result will be the evisceration of the spending cap. We will have traded higher taxes for nothing of lasting value.
By voting NO on new taxes and continuing to vote NO, we are imposing our own spending cap. We will get what our state needs without the need for a statewide election on a complicated issue. Someday, we will elect a Republican Governor who will assist in our efforts by using his veto pen to cut spending.
I think the only compromise that will really work is a compromise for spending cuts NOW, without any compromise to support economy-destroying tax increases in the middle of a recession.