Here’s some "instant, lightning round" response to some of the statements of the Governor in his State of the State Address. Excerpts from the Governor’s speech are in quotes, and boldface. My comments follow each quote…
"The Schwarzenegger household is something of a menagerie."
No doubt.
"Just last night the Assembly passed major educational reform, reform that once seemed impossible, but now will become law as soon as it hits my desk."
Some good reforms. Governor should have noted that it should not have taken federal incentives dangled from 3,000 miles away to get them, and that the federal government should not be crafting state-level policy with payoffs.
"And now we must work to pass the 11 billion dollars in water bonds that will be on the ballot in November."
This package has a lot of problems, including billions of proposed borrowing that does nothing to solve the water crisis — much of it for egregious pork projects. The legislature should pull it off the ballot before voters reject massive borrowing during a recession.
"The first priority for the coming year is the economy and jobs."
Yes!
"The people and businesses of California are an engine of self-betterment and progress. As long as government keeps the engine oiled with prudent policies — and more importantly — does not pour sand in its gears, this state will persevere and prosper."
Yes! Yes!
"First, you will receive a $500 million jobs package that we estimate could train up to 140,000 workers and help create 100,000 jobs."
Is this Obama-style spending, California style? If $500 million is the "scored cost" of reducing taxes and regulations to spur growth and create jobs, awesome. If this is a half-billion dollars of wealth redistribution, making "government investments" of taxpayers dollars — then we don’t need it. President Obama has demonstrated that increased government spending doesn’t help turn around the economy. We’ll see what this looks like.
"Second, you will receive a measure to streamline the permitting of construction projects that already have a completed environmental report."
If the legislature can provide regulatory relief for billionaire Edward Roski’s pet project, then every Californian deserves the same consideration. This is a good idea.
"Third, to stimulate other construction jobs, you will receive a proposal for homebuyer tax credits of up to $10,000 for the purchase of new or existing homes."
At its core, this kind of policy is redistribution of wealth. Better to take the budget for this line item, and instead reduce taxes for all Californians. That said, this tax credit is better than many others since it would be available broadly (though at the expense of those not buying a new home).
"And fourth, since we want California to be the dynamo of green technology, I ask you to pass our proposal exempting the purchase of green tech manufacturing equipment from the sales tax."
The Governor should have announced a suspension of AB 32. This entire manipulation of the marketplace, increasing regulations on the vast majority of business of California, and redistributing wealth to "niche" purchases that are in line with the Governor’s extremist environmental agenda only hurts the economy. More government picking winners and losers.
"The basic problem is that our tax system does not reflect our economy. In 2009, California’s economic growth declined 2.8%…but our tax revenues were down more than 8 times that much. Our economy is diverse, whereas our tax system is not. 144,000 taxpayers pay almost 50 percent of all personal income taxes."
All true. The Governor is spot-on here. We need a change to a flatter system.
"I sent you the Tax Reform Commission’s plan in late September, but it seems to have disappeared somewhere under this dome."
Much of the commission’s report is solid — though the introduction of a value-added tax in the state should be DOA.
"The budget crisis is our Katrina. We knew it was coming. We’ve known it for years. And yet Sacramento would not reinforce the economic levees."
Our budget crisis can be laid directly at the feet of the liberal Democrats who have controlled the State Legislature for decades, and their special interest bosses who have worked to see state government grow to horrible proportions to better accomplish their goal of wealth redistribution.
"In addition to taking action on the Commission’s plan, I ask you to also take action on the Best Practices Budget Accountability Act, which has been drafted by the reform group, California Forward. I especially support its proposals for performance-based budgeting and applying one-time spikes in revenues to one-time uses, such as debt reduction, infrastructure and the rainy day fund."
I haven’t read this particular part of CA Forward’s expansive agenda closely, but from summary explanations, it sounds like a good idea. As to whether voters will be able to find it amidst a sea of ballot measures this November — that’s another issue…
"We face a $19.9 billion deficit — $6.6 billion for the rest of this budget year and $13.3 billion for the upcoming budget year. First, as bitter as the words are in my mouth, we face additional cuts."
Not only should the Governor propose cuts to areas within the legislature’s jurisdiction, but he should propose ballot measures to ask voters to reconsider previously passed measures (like Prop. 98) that tie the hands of the legislature by "walling off" areas that they cannot control.
"I will submit to you a constitutional amendment so that never again do we spend a greater percentage of our money on prisons than on higher education."
I guess we’ll see what this looks like. But it seems like some sort of broad ballot-box budgeting and I’m not sure how well that has worked for us thus far.
"If California’s prisons were privately run, it would save us billions of dollars a year."
This is a no-brainer and right on the mark. If we can come up with a way to house inmates that both protect the public, and also protects those in state custody — but for less money, what’s not to like?
We are currently owed billions of dollars by the federal government for various programs.
"We need to work with the feds so that we can fix the flawed formula that demands that states spend money they do not have."
Amen. Although I wonder if the Governor would object if the federal government were forcing states like Texas to spend their money to reduce carbon emissions?
"You’ve heard of the bridge to nowhere. This is health care to nowhere."
Best line of the speech – by a long shot.
California’s congressional delegation should either vote against this bill that is a disaster for California or get in there and fight for the same sweetheart deal Senator Nelson of Nebraska got for the Cornhusker State. He got the corn; we got the husk.
We’d prefer option one — just vote no!
"Now, another priority relating to the budget is pension reform. The cost for state employee pensions is up 2,000 percent in the last ten years, while revenues have only increased by 24 percent. The pension fund will not have enough money to cover this amount, so the state — that means the taxpayer — has to come up with the money."
Yes to pension reform. Though trying to achieve real reform through the legislature is a fool’s errand. At best you would get window-dressing reforms approved by union-bosses to try and take the wind out of the sails of real reform. California employees should have defined contribution benefits like everyone else. And current employees, for future years of service, should be shifted to them.
"California has more returning veterans than any other state, so our state, as well as the federal government, has a special responsibility. And if you look to the gallery, you will see some Californians wearing the uniform of our country who have just returned from Iraq and Afghanistan."
God Bless our men and woman in uniform, who put their lives on the line to defend this nation and our principles!
OK, that’s it for today’s "lightning round" State of the State response.