This op-ed originally appeared in Fox & Hounds
Well, true to form, the Democrats’ budget delay tactics continue this year. The leaders of both the Senate (Steinberg – D Sacramento) and the Assembly (Perez – D Los Angeles), refuse to accept the Governor’s budget, but are offering no real alternatives. Reportedly, they have agreed on a few budget reductions but are no where near how to fill the gaping $19B budget hole.
One rumor is that a delay until we run out of cash in the fall, might play into the “dysfunctional” Legislature theme, forcing a “bi-partisan” agreement (read: raise taxes). Another rumor is that the
Democrats want to convince voters that 2/3 vote requirement to pass a budget is the problem, and they are willing to inflict budget pain in the schools and on the streets, or through IOU’s when funding stops, to make their point. Not surprisingly, there is a measure on the ballot in November that would allow voters to decrease the budget vote requirement to a simple majority (50% + 1).
Without the 2/3 vote requirement, 50% (plus 1) of the Legislators could pass taxes without the input of 50% (minus 1) of the rest of the state. Why would you want taxation without representation?
To date, the Governor and Republicans have held firm on “no new taxes” but who knows what a long stalemate will bring? Some of the hardest hit areas of the state, the Central Valley farming communities, reeling from the water shut-off that has decimated the region, could demand relief. School funding and union scare tactics, could also create chaos for taxpayers statewide. There are better solutions.
First define the problem – we are de-facto bankrupt. We cannot merely cut or tax out of this recurring deficit situation. Just like a large corporation, we must reform the way we do business in California.
- Reduce spending (in departments across the board if necessary, rather than picking winners and losers). I’m convinced staff knows where to save money.
- Halt state government hiring – attrition will help reduce staff levels.
- Continue to negotiate unsustainable pension agreements that were approved in 1999.
- Establish a rainy day fund to begin saving when our revenues start bouncing back, to reduce debt and reserve for the next downturn in the economic cycle.
- Ensure accountability for the dollars we are spending, specifically on large projects. I’m amazed at the lack of accountability at the state level as to risk analysis and project level tracking (i.e. Transportation projects, IT, High Speed Rail).
- Implement performance-based budgeting in lieu of zero-base, rewarding cost-saving measures.
- Reduce regulation to encourage private sector job growth California.
- To truly spur employment in those areas of the state with 30% unemployment – ensure California has a steady, reliable supply of water.
We don’t need more taxes to feed the beast -we need reform and oversight. In other words, we need Democrats in the Legislature to act responsibly. Understanding the potential “chess” strategies behind the rhetoric this year is key.
Assembly Republican leadership is meeting in Sacramento on a regular basis to try to move things along. We can make long overdue fixes to get out state back on track and Golden again, but
we must not allow “dysfunctional by design” to rule the day.