For some weekend reading, I am pleased to present this commentary from freshman Republican Assemblyman Dan Logue…
THE TIME FOR BUDGET REFORM IS NOW
Assemblyman Dan Logue
At the beginning of this past week the Legislature convened in a rare joint session. On the floor of the Assembly, members of the Senate and Assembly came together to hear the sober message of the Governor’s Fiscal Director, State Treasurer and Controller officers regarding the magnitude of the State’s fiscal crisis. However, this year’s budget shortfall should come as no surprise. For several years California has prospered with large increases in state revenue, yet many of these same leaders did nothing to prepare for rainy days. During that time, the state’s revenues increased over 30%, but spending went up even higher. Now here we are, faced with crippling deficits and threats that our only way out is to raise taxes to historic levels or cut law enforcement and public safety services. If there is one thing that should be clear to all Californians, it is that now more than ever we need to reform our budget process and reform our government.
When one is in a crisis the first thing to do is figure out how you got there. California survived on a much smaller budget just a few years ago, so how can we be broke when we are making 30% more than we did then? The simple answer is that we spend too much. In each of the last few years, in spite of significant increases in tax revenue to the state, our state’s spending outpaced increases in revenues we were taking in. The Legislature has been doing this each year, using creative borrowing to cover it all up. But now times are tight, the bill is due and someone has to pay.
Democrats in the State Legislature think you should pay the bill. Their solution to overspending is to demand that Californians pay more taxes. To drum up support for tax increases, democrat legislators are threatening all sorts of programs and services with drastic cuts. They assure us that our senior citizens and poor will be eating cat food and living on the streets if we don’t fleece taxpayers just a little bit more. The problem is that a little bit more is never enough for them. California already has the 4th highest tax burden and the highest business costs in the nation. In October California’s unemployment rate hit a 14 year record of 8.2%, this is the worst possible time to increase taxes; it will only further hurt businesses and discourage job growth.
There is a better way to manage California’s budget. It’s called a responsible spending cap to put an end to the unchecked growth of government and a responsible reserve.
Last year California lost 95,000 private sector jobs but incredibly added an additional 35,000 government jobs.
In those years when the state brings in higher tax revenues than needed under a spending capped budget, this money away to help out in lean years. That way, when the lean years come, we’ll have a responsible reserve to keep from having to make heavy cuts to state services. Once a reserve is established, any extra money could be spent on infrastructure improvements, such as roads, bridges, or dams. Or better yet, we could give it back to the taxpayers who are already overtaxed.
Republicans in the State Legislature are demanding budget reforms like a rainy day fund. We also want limits on the increase of annual spending. Spending growth should be tied to the growth of the population and inflation. We cannot afford more impulsive state spending. Those are the policies that have brought us our current deficits and budget crisis. It is time for responsible leaders to stand up and demand that our budget process be fixed, both for the state’s taxpayers, and for those who depend on state services. Let’s work together to ensure California never goes through this budget disaster again.
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Assemblyman Logue, (R-Yuba City) was elected in November to represent the 3rd District. He was sworn into the State Legislature earlier this month.
You can write to Assemblyman Logue, via the FR, here.
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