Today the Republican Party here in California is at a crossroads.

We watched from here in the Golden State while the GOP’s brand name was severely damaged by a Republican President and Senate and House majorities earlier this decade, when with GOP control, our party “presided” over growth in the size and scope of the federal government. Credibility is now an issue for our party, because our rhetoric did not match our actions.

Today, on a holiday weekend, on Valentine’s Day no less, at night, the State Legislature will gather in the State Capitol to vote on a state budget deal that is really, really bad news for California taxpayers and their families – the center point of this place is $14.8 billion in new taxes (more like $70 billion in new taxes over five years if all of the taxpayer-pain envisioned in this plan comes to fruition). I won’t spend time in this column blasting away at the poor policy reasons to oppose this plan, Assemblyman Chuck DeVore, Jon Coupal with the Howard Jarvis Taxpayers Association and John Kabateck with the National… Read More

In response to Cap Weekly’s mention of possible GOP leadership rumblings over the current budget deal, Jon Fleischman notes in a post below that he typically refrains "from commenting on legislative caucus politics."

Fair enough. However, the rumors of rumblings does evoke some memories of the last Assembly GOP rumble. Then-Republican Minority Leader George Plescia was ousted a bit over two years ago — and replaced with Mike Villines — ostensibly for the crime of being too accommodating of legislative Democrats and Governor Schwarzenegger, meaning not standing firm enough in representing GOP Caucus interests and ideals when it came to budget negotiations.

Fast forward. Today we have an Assembly Republican Caucus, a clearcut majority of its members sharing the conservative, no taxes stance of the 2006 version. Just last November, the GOP leadership in both houses excoriated the Governor for proposing tax increases. Yet, the budget deal to be considered tonight, as negotiated by leaders of both parties and… Read More

Dan Schnur points out the need for an alternative budget below. This is something that I have been considering for several weeks now.,

In 1993 a member from each party did come together to attempt to "solve" the budget crisis. Republican Senator Frank Hill and Democratic Assemblyman Phil Isenberg actually started to write their own budget document. The budget delay then was 63 days but few would doubt that their efforts helped determine the eventual outcome.

Personally, I support term limits for members of the Legislature but one of the obvious reasons we don’t have alternative budgets is because of the imposition of term limits. It is hard to write a budget that makes sense. It takes experience with government and an understanding of the process.

Many of you will attempt to point to the fact the Hill later served time in prison as a reason this was a bad system. The reality is that he and Isenberg are both very bright men that understood the system and had the staff support to make this happen. His other issues have nothing to do with this.

Right now in Sacramento how many members of the Legislature truly understand… Read More

Ben Zycher responds to Genest in Round IV.

I will jump in here to say, again, that with all of these VERY REAL concerns about the cap being expressed by a noted conservative economist, isn’t it time to put on the breaks? Genest is a great guy, but it doesn’t change the fact that his office is under strong pressure to pass this "Big Five Big Taxes" budget deal… Zycher’s responses (he is responded to Genest’ points here): 1. Mr. Genest continues to insist that there would be no transfers from (or reduced transfers to) the BSF after 2010-11, unless the governor decides that there is a need to "cover a current services budget." Therefore, there will be such transfers from the BSF to the general fund as long as the governor decides that there is a "need." And "population plus inflation," as I noted earlier, is far more elastic that Mr. Genest is willing to admit, so that the current services baseline in reality will… Read More

Freshman Assemblyman (and fellow FR blogger) Curt Hagman released the following statement about his stance on the staggering new tax increases in the budget proposal:

“California’s economy is in shambles. Businesses, jobs and taxpayers keep leaving the state. According to the Employment Development Department (EDD), on January 1, 2009 there are 184,500 (8%) more employees on the government payroll than on January 1, 2001. Over those same eight years, private sector employment is up only 33,600 (0.2%).This means that the public sector accounts for 85 percent of the overall growth in California over the last eight years.

Even before an estimated $6.4 billion in business tax increases from last year’s budget, California employers already paid taxes that were 20 percent more than the national average. The national population of millionaire households grew by 5.9% in 2007, Los Angeles County lost about 7000 of these households. Orange and San Diego Counties lost millionaire households as well.

Maricopa County in neighboring Arizona gained 23,000 new millionaire households in the same time period. Why? Arizona’s top marginal… Read More

This just in from Grover Norquist, Prsident of Americans for Tax Reform…

State Senator Dave Cox, who has been talked about as one of three potential AYE votes for the $14++ billion tax package, has apparently filed some amendments at the desk to the Big Five Big Tax plan. Contents of those amendments? UNKNOWN.

That said, Senators Dave Cogdill and Roy Ashburn are presumably ready to support the package. Coincidentally, the two of them are off of the floor right now.

So all eyes are now on the Sacramento Area Senator — Cox.

In the meantime, is there enough solidarity in the Assembly Republican Caucus not to JAM the process. We’ll see how this goes!

As Drudge would report… Developing…… Read More

3:30 PM Update: The Governor’s Office has responded to Zycher’s observations below, and that response can be found here.

As we rush speedily into a vote tonight on a "Big-5" produces budget plan that includes nearly $15 billion in assorted tax increases, one of the major "concessions" that is in the plan, to "sweeten it" for GOP support is the placing of a Spending Limit Initiative on the ballot (though we note that the Limit, if it passes, also extends the tax increases).

One of the policy experts on economics and state finances that I look to in this area is Dr. Benjamin Zycher of the Pacific Research Institute. Zycher was asked by the Howard Jarvis Taxpayers Association to review the final language.

… Read More