The following commentary is co-authored by Steve Baric, Keith Carlson, Tony Krvaric Paul Bruno, Shawn Steel, Doug Boyd and Jon Fleischman, the Secretary, Treasurer, Budget Committee Chairman, Vice Chairman, Central Coast, Vice Chairman, Los Angeles, National Committeeman and Vice Chairman, South of the California Republican Party respectively.
To say that we were disheartened upon news that the GOP’s primary negotiators in seeking a solution for the massive over-spending induced state budget shortfall, Senate Republican Leader Dave Cogdill and Assembly Republican Leader Mike Villines, had reached a “deal” as a product of the secret back-room “Big 5” process, and had come back to present plans to their respective legislative caucuses that contain roughly $14 billion in new taxes on Californians would be an understatement. It was almost a surreal experience – because the plan that was laid out was so much worse than any one of us could have imagined – and because the plan, from our understanding of it, is not only terrible public policy for California (tax increases like this are a bad idea in good economic times, let alone at a time when Californians are in the midst of a national recession), but the politics of this “deal” would appear to completely gut the political identity of the Republican Party as the party of limited government and lower taxes, at a time when we are all still reeling from the effects of national GOP overspending on our brand name.
To summarize our understanding of major tax increase and spending components of this “grand compromise” (which we will entitle the “Taxpayer Betrayal Act” or “TBA”) as we understand it — we’ve lifted this summary from the Sacramento Bee’s website: $15.8 billion in cuts, $14.3 billion in tax increases, $10.9 billion in borrowing. And if California gets $10 billion in federal stimulus money, cuts drop by $1.2 billion, borrowing by $5.5 billion and tax increases by $1.8 billion.
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on Thursday, February 12th, 2009 at 12:00 am and is filed under Blog Posts.
February 12th, 2009 at 12:00 am
Instead of just talk, do something about it. Has anyone started to look into writing a measure for the ballot to control Sacramento? Here are my thoughts-
As we are most certainly aware, when Sacramento finally “solves” the budget situation, it will in fact, offer no real long term solutions. This is why the GOP, the party of less taxes and government, needs to step in and get an initiative on the ballot ASAP.
Let’s look at the facts-Most of our legislature does not know how to balance a budget (That is shown every year by the smoke and mirror approach that we see during every budget situation).
Fact-Most of our legislature can’t say no to enlarging existing or creating programs with no regards how to fund it.
Solution-A voter lead initiative (Since we know that most of our legislature couldn’t handle something like this) that would bring back a stable and fiscal responsible budget system for the state. The benefits? Quite obvious-The state, counties, cities, school districts agencies could actually plan on the future than relying on what Sacramento will take away from them now to try to solve their fiscal mess. But most importantly, these reforms will make California into a strong state once again, a state that will, once again, attract businesses and attract new jobs.
The initiative-
Revenue projections-Pessimistic NOT optimistic revenue projections would be used in projecting revenue for the state. Using optimistic projections end up creating programs and bloating others and when the projections for revenue fall short, the state finds it hard to cut back. Using a lower revenues projection will mostly eliminate that. What to do with that excess revenue brought in? Put it away for a rainy day fund. When that fund hits a certain level, a portion can be rebated back to the consumer.
Rainy day fund. This fund needs to be defined so that it cannot be raided for whatever reason. I would classify it as a fund to be used for emergencies, such as disasters, not the disasters when Sacrament overspends and now needs help to balance their budget.
Funding of programs. If the Sacramento wants to bloat or create a program/agency, they would be required to find the funds for that out of existing programs. They will not be able to raid the Rainy day fund for it.
Government watchdog for waste. A watchdog with power needs to be establish to go thru the different agencies and departments and find the waste and ways to improve efficiently. These reports would mandate change. Allow this to spread to any agency that receives state funding. Allow the state to check their operations and then mandate change. Any agency that refuses this, would not receive funds from the state. We need to be a watchdog for the taxpayers.
Legislature. I think most citizens are angered by the fact that our elected officials are getting paid during this mess, while state offices are being closed and workers are being threatened to be furlough. A simple solution-No pay for any State Office holder until the budget is solved and no payment for this lost wages after the budget is solved.
We deserve more than smoke and mirrors every year from the folks in Sacramento. We deserve REAL fiscal leadership and responsibility. The proposed measure would do such. Who is up for the challenge? Let’s get this or a similar measure on the ballot ASAP. Let’s make the initiative simple and straightforward so the other side cannot smear it.
February 12th, 2009 at 12:00 am
The question is: how many recall elections are we going to have to have?
February 12th, 2009 at 12:00 am
Another part of this – the new taxes would be extended for one to three years if the voters pass spending control. How does that make any sense at all? When the state starts to save money you keep taxes higher? That’s like responding to a severe drop off in income by buying a new Mercedes.
February 12th, 2009 at 12:00 am
Recall any Republican who votes for this measure.
February 12th, 2009 at 12:00 am
Mr. Lew Ulher, as quote in the FR recently had it right about the demands that the CA government class have placed upon the wealth creators in CA. Let us take it one step further: as it becomes more expensive to create goods in our state, those goods become less competitive in the market place. Capital knows no boundaries. When producers leave or fold the demands by the apparatchiks will not diminish, at best, they will stay the same. We will see the same demands upon wealth creators spread to those that remain. The exodus will only accelerate. The weather in CA is just not good enough to overcome simple economics.
February 12th, 2009 at 12:00 am
Finally some Flash Report Junkies are getting into it….might be a bit late for we are all bending over for the final shafting.
John and Ken feel get every Republican….clean them all of including golden throat Devore who is a fence sitter hoping that Boxer falls off a train, I guess. He was on John and Ken and showed no leadership or crisis skills….and he wants to be a United states Senator….who will be courageous….who will have the guts to take the current leaders for the fetal positioned Republicans to the exit doors….You have been had, insulted, lied to, kept in the dark, poorly represented junkies….and I think you love it!!!
February 13th, 2009 at 12:00 am
It’s a sad commentary when non-Republicans (John and Ken) are more vociferous spokesmen for the Republican point of view on the state budget and taxes than any of the so-called Republican leaders in Sacramento.
February 13th, 2009 at 12:00 am
It is Friday the 13th and not one RINO or one Republican operative in an admin position standing up for citizens in Flash Report….Republican admin types are in it for the money….a salary the perks the prestige the country club Monte Cristos and Old Fashioneds and Tequia Sunrise drinkds…never have I seen such a pathetic group of fat old hacks in my stint here in Taxifornia.
February 13th, 2009 at 12:00 am
Time to recall all Republicans from the legislator….no discipline…six repulbicans are selling us out to sales, gas, income, car taxes….most of the traitors are termed out….so time to recall other career flakes and make them regret not stopping this carnage that is about to happen….