A Coming Fiscal Crisis?
California’s budget situation is rosy for the first time in my more than three years in the legislature. I’d like to say “You’re welcome.” But I can’t for two reasons:
First, while my Republican colleagues and I have been fiscally responsible in our legislative priorities, it is you, not me or Gov. Brown or anyone else in Sacramento, who is fiscally responsible for the surplus. You paid the additional income, sales, and capital gains taxes that gave us the healthy budget we enjoy today. You are responsible for the surplus, not the politicians.
Second, it won’t last. That is not me talking, that’s the governor’s own warning in the budget he put out last week. There is just no sense in any legislator taking credit for a temporary improvement in the state’s fiscal health unless . . . well, I’ll come back to that in a moment.
There are several things to like about the governor’s proposed 2014-15 budget. Most importantly, it admits that the surplus will be short-lived. It comes from – to use the governor’s words – a “windfall” in capital gains receipts and “temporary” tax… Read More