As you spend today mulling over their options, weighing the importance of demanding much needed reforms in state government spending in return for providing needed votes for a big fat state budget, I know that there is concern about the perception of their efforts to the public. Our "friends" in the main stream media have yet to publish one legitimate story from the perspective of principled fiscally prudent legislators who are refusing to approve a massive budget unless it comes with some significant reforms to reduce deficit spending in future budgets, and important reforms to mitigate the potentially devastating effects of the implementation of costly regulations in the name of the ‘global warming’ battle. There is the potential to eliminate thousands of vacant positions in the state bureaucracy, and more. But we don’t read that story in the newspapers, either. We are only treated to a daily dose of "who isn’t being paid today" in an effort to create feeling that delaying the budget simply is not worth the reforms sought by responsible Senate Republicans.
Guess what? At some point, there will be a state budget. And you can be sure that when there is, the main line press will still never give you or Republicans any credit for achieving any progress towards fiscal sanity. We could trim state government by billions, equalize the long-unfair apportionment of education dollars, end funding of abortions to children who are not here legally, and whose parents aren’t even aware of the surgery — and guess what? Yes, the analysis from our ‘unbiased’ media will still be that "despite the negative influence of the right-wing, reactionary Republicans, common sense has prevailed in the state budget debate."
My strong advise to you is this — don’t worry about what the press says, because you all have been around enough to know the problems with state government, and how important the battle is in which you are engaged. You know that the real reforms you are pursuing (the ones you cannot achieve with the Governor’s strategic use of his line-item veto authority) are not just important, but are critical. And you also know that once the budget is approved, you will all be relegated back to a very peripheral role as the Governor then re-engages with legislative Democrats on healthcare issues, and his international anti ‘global warming’ jihad.
The fifteen of you in the driver’s seat. Without you, there is no budget. So do the right thing — the people of California, and the future fiscal health of the state in which we all live, is in your hands.
If you are waiting for the praise to come from the newspapers, it will be a long wait. Their liberal bias simply does not allow them to understand or appreciate why you didn’t vote out the Assembly budget weeks ago.
August 1st, 2007 at 12:00 am
I always get my hopes up that this will be the year with no budget. (yes I truly believe that is a good thing) That the Republican leaders will hold fast and never give in. History shows that the press will report every Democratic attack with glee and at some point someone will give in and vote for a bad budget. The Governor and Assembly Republicans have sold us out lets hope the Senate can deliver.
August 1st, 2007 at 12:00 am
Yeah, that strategy worked so well with Newt Gingrich and the Congressional Republicans vs. President Clinton — almost as good as the current Senate GOP “strategy” (and I use that term loosely)
August 1st, 2007 at 12:00 am
I applaud the “Senate 15” for their truly heroic efforts to retain a small modicum of fiscal sanity despite demands from the fiscally irresponsible majority for business as usual.
An analogy with my former home in Canada is instructive as to why the “Senate 15” stand is so important.
I moved to California 17 years ago from Ontario, Canada. As I left, Ontario was entering its deepest recession since the 1930s, and ran up over $60 Billion (with a “B”) in General Fund debt over the next four years. In addition, because the Province owned the electrical utility, Ontario Hydro, it was saddled with a further $30 billion+ debt that resulted when Hydro mothballed several nuclear facilities. So, in the space of a little more than 4 years, the Provincial taxpayers accumulated over $90 Billion of General Fund debt. Income taxes rose to a 49% marginal rate on $110,000 CDN of income (which is calculated without U.S.-style deductions) and property taxes rose to among the highest levels in North America.
Ontario law doesn’t require that debt be paid off, so politicians “managed” the problem by finding creative ways to keep interest rates low and “minimize” the impact on the General Fund. Today, 12 million Ontarians pay over $10 Billion INTERST on the Provincial debt, with little prospect of it ever being paid off.
What’s the lesson for California? Our debt is rising rapidly, and while still manageable, will expand considerably in the next few years as “infrastructure needs” and other demands lead to an ever higher debt service component in the budget. The $700 million at issue in the current debate may seem trivial relative to $146+ Billion of proposed spending, but as Everett Dirksen famously said years ago, “a million here, and a million there, and pretty soon you’re talking about some real money”.
The point is, if we can’t contain spending at the current inflated levels, we have zero prospect of doing so during the next economic downturn, which will impact California’s budgetary revenues disproportionately because of its extensive reliance on income and capital gains taxes (not likely to see much of a “gain” in this category, any time soon). If history is a useful guide, the economic downturns in 1990-91 and 2000-2002 caused a blowout in California’s General Fund deficit that took years to recover from. A little fiscal prudence now will pay some large dividends down the road in the form of mitigating future deficits.
A final suggestion. One of the few good ideas Gray Dufus ever had was to review the fiscal structure of California’s finances. The L.A. Times has documented very well how we are overly reliant on income and capital gains taxes and the problems this causes in terms of the budget cycle, etc. At the same time, we have a hodge-podge of consumption taxes, including the famous example of sales tax paid on muffins purchased for take-away at Starbucks, but no tax paid if they’re purchased at Ralph’s. The Senate and Assembly could have addressed the fiscal mess a long time ago by rationalizing taxes and lowering rates, which would in turn have led to greater revenues. Instead, we’re rehashing the same tired lines in the form of new tax credits and adding more complexity to an already insane taxation scheme. Instead of fading into irrelevance after the budget is settled, I propose that the “Senate 15” take up the challenge of California’s tax system, and use it to reform it in such a way that will encourage growth, simplicity and maximize economic efficiency.
August 1st, 2007 at 12:00 am
People need to remember that Governor Schwarzenegger is focused on California and not capitol gridlock. They also need to remember that he has been fiscally responsible with taxpayer money. In fact his track record shows he has reined in spending, held the line on using one-time money for ongoing expenses (a great sin of the Davis years), and cut taxes; and the current budget under consideration in Sacramento builds on that record.
I’m not arguing that this budget is the best of all possible Republican worlds, but it’s also nowhere near close to being the worst.
Republican legislators need to take a page from President Reagan’s playbook and learn how to look like they’re winning even when things might not be going their way. They need to remember it’s always better to bend than to break.
So yes, kick, scream, and drag your heels, but in the end, compromise on a budget because California needs one and because it’s the right thing to do.
August 1st, 2007 at 12:00 am
Holy cow! A Republican that makes sense, right here on the Flash Report! You said it, Noel.
August 2nd, 2007 at 12:00 am
Ventura County has the unfortunate honor of being involved with the Budget stonewalling – which is doubly ridiculous given the state of the current California Republican Party budget – in debt up to its eyeballs. People in glass houses should quit throwing stones.