This just over the transom from the office of State Senator Jeff Denham…

Assembly’s Proposed Budget Only Intensifies California’s Fiscal Problems
By Senator Jeff Denham, 12th District

As a State Senator, I took an oath to uphold the State Constitution. That means a budget that balances every year. I understand that the decisions I make, and the way I vote, doesn’t just impact me. It also doesn’t just affect the 850,000 constituents in the 12th Senate District that I represent. My votes impact everyone one of us who lives in this glorious State. So, when the Assembly in the wee morning hours, throws together a budget package, I find it outrageous that they would expect the Senate to approve their budget without a blink of the eye. It’s ridiculous that some of my colleagues would wheel and deal and settle with a lame agreement, so they can continue their planned vacations for summer break.

Senate Bill 77 (the proposed budget bill) has no new taxes or fees, provides a General Fund reserve of over $3.5 billion, and funds many programs that are important to Republicans. When you put it that way, I guess some people could see that as a positive. But, when you take a deeper look, this budget is a no-win budget for current California residents or future residents like our children’s children. I would have felt guilty passing today’s debt onto our children, and their children.

SB 77 promises increased funding for lots of programs. However, it leaves the state in a $699 million deficit. And, spending decisions contained in this budget will result in General Fund operating deficits that exceed $5 billion in 2008-09 and will continue higher for following years. It’s unconscionable that this budget would propose to take away the teacher’s tax credit, particularly given that another part of this proposal would also give tax breaks to Hollywood moguls and airline companies.

When I was first elected in 2002, California faced a similar deficit. The attitude then was to either raise taxes on one side or cut spending on the other side. I took a fresh perspective and approached the budget deficit as I faced similar issues in my ag-business. I wanted to look at the State’s balance sheet and see if there were assets, such as equipment or properties, which were no longer needed. To my dismay, I quickly learned that the State didn’t know what it owned. From there, I worked with my colleagues to clean up how California performed and today, we have a list of those assets. 

This proposed budget only intensifies California’s fiscal problems. SB 77 continues deficit spending, puts unneeded restrictions on Proposition 1B (transportation bond) monies and dumps hardcore, violent prisoners out of state prisons and into local jails. The people of California deserve much better than this. In order for this State to continue to meet the numerous demands for funding, Legislators must work together to cut wasteful spending and find out-of-the-box solutions to meet these needs.  If that means selling of surplus property or finding new revenue streams, the Legislature must be open to new ideas and explore these options.

This entry was posted on Tuesday, July 24th, 2007 at 12:00 am and is filed under Blog Posts.