Posted on 07/08/2004 8:32:04 AM PDT by NormsRevenge
SACRAMENTO (AP) - Negotiators said they would resume talks Thursday on California's stalled budget as tensions mounted over the last remaining stumbling block - reforming how the state pays for the operations of local governments. The question of local government financing has stymied a budget settlement for nearly a week, pitting city mayors and county supervisors against the Legislature's Democratic majority and increasingly, Republican Gov. Arnold Schwarzenegger.
Negotiations ended Wednesday without resolution, and there was a growing sense three weeks past the constitutional deadline for adopting a budget that local officials may not be able to reach agreement with lawmakers over the reform package. The impasse puts $2.6 billion in savings to the state in jeopardy.
"What happens when you get this close, people have a tendency to hold their ground," said Assembly Speaker Fabian Nunez, D-Los Angeles. "Pretty soon here people are going to lose their patience."
After watching the Legislature exercise its authority to redirect billions in local property tax dollars in the past, local officials said they would fight the cuts unless they receive a guarantee their money will be protected from future state raids.
Los Angeles Mayor Jim Hahn, who is serving as one of the primary negotiators for local governments, said Wednesday that he was not ready to concede a stalemate and still believes a deal can be worked out.
"We want as much protection as we can get," Hahn said. "We want to be the bankers and be in control of the process, (where) we're setting the loan terms."
Although Schwarzenegger had made getting an on-time budget a priority for his new administration, the state is now a full week into the new fiscal year without a spending plan. Ironically, the thorny issue of local government financing is partly the result of the Republican governor trying to get early agreement on his budget.
Facing an estimated $17 billion shortfall, Schwarzenegger proposed in January cutting cities, counties and special districts $1.3 billion in the 2004-2005 fiscal year. In response, local officials qualified a ballot measure aimed at preventing not only Schwarzenegger's transfer, but any future state raids without voter approval.
In May, the governor and local officials agreed on a compromise: cities and counties would accept $2.6 billion in cuts over the next two years in exchange for Schwarzenegger's backing of a new constitutional amendment that would protect local money.
Democratic leaders, however, objected to the accord, saying the deal made permanent a flawed financial relationship and left the state with no options for tapping local funds for help in an emergency.
The talks are now focused on how much of a guarantee local governments need while still giving the state some flexibility.
Officials close to the talks said counties and special districts have indicated support for the latest compromise from lawmakers. City leaders, however, have held out for stronger guarantees.
While the task of forging an agreement on local government moved ahead Wednesday, legislative aides and school officials noted that there are outstanding issues that could still derail the budget talks .
One is a proposal to eliminate an income tax break worth $125 million for school teachers. Another would close a tax loophole for buyers of luxury yachts. A third issue involves repealing a state law that prohibits schools from using outside contractors for non-teaching work.
Of the three, eliminating the teacher's tax credit will likely spark the most opposition. Already the California Teachers Association, the state's largest teachers' union, has said it will fight any plan to eliminate the tax break, said the union's president, Barbara Kerr.
"We keep hearing about no new taxes, and to tax the teachers of California without warning is an outrage," she said.
Superintendent of Public Instruction Jack O'Connell agreed, saying that eliminating the tax incentive "would send the wrong signals about our priorities as a state."
Republicans, meanwhile, want a proposal to impose $200 million in fees on businesses and rural property owners eliminated from the governor's plan. Also, Schwarzenegger's goal of securing $750 million in concessions from state labor unions has fallen well short.
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On the Net
Gov.'s home page: http://www.governor.ca.gov/state/govsite/gov-homepage.jsp
http://www.sen.ca.gov/
California Senate
http://www.assembly.ca.gov/acs/defaulttext.asp
California Assembly
I would be for taxing Democratic special interest groups heavily. I'm amused by their outrage. These happen to be the same people who insist every one else pay more and when it comes to contributing to what Hillary Clinton called "the common good" they balk. It just shows up the depth of their hypocrisy.
SACRAMENTO (AP) - Negotiators said they would resume talks Thursday on California's stalled budget as tensions mounted over the last remaining stumbling block - reforming how the state pays for the operations of local governments.
What's this crap about "state pays for local government" when the property tax was supposed to be for local government in the first place?
Gubmental intrusion at all levels of society has brought us to this point.
Now, the trick is to get the "enslaved" to realize they been had and we are deeply engulfed by socialism and time is a'wastin.
-y
As you know, I'm working on it.
We need to do two things to starve the beast in California: abolish the income tax and make the state government dependent on the sales tax and have local governments subsist on the property tax. That will give us the kind of government we need in our state for the 21st Century.
The outsourcing of various functions could also be a step in that direction. Our current statist model is no longer workable. Its not obvious yet to the elites but give it time.
Historically, they don't seem to care if it's workable as long as it's been workable for them. Corruption has been very profitable, for them, at the expense of total wealth. Unfortunately for that fantasy, if Hollywood or Atherton think they are immune from what happened in South Central LA, they have a lot to learn.
Honest outsourcing has to come by public demand and the understanding that only a bigger pie produces real individual wealth. A state in chaos benefits nobody.
BTW, perhaps you would like to learn more about how that can be done.
What Arnold should do is go tell Burton: "Enjoying that cigar? Good, because next Monday I'm going to start a little countdown. Monday, I'm reneging on $2B of previously-agreed-upon welfare spending, because you didn't deliver the votes you promised. Tuesday, another $2B. And so on. Smoke up; but our deal's off."
between mandated spending, entitlements and nanny state social programs,, all of which, WE, the Average Joes pay for, any break is a welcome one at this time.
And Good F'n Riddance to Burton.
between mandated spending, entitlements and nanny state social programs,, all of which, WE, the Average Joes pay for, any break is a welcome one at this time.
And Good F'n Riddance to Burton.
This is the area where I'm most upset with Arnold. For heaven's sake, if the governor can't cut spending at least a little bit, with all the advantages he now has, then he may NEVER cut it. Cripes, popularity is meant to be USED (by politicians).
True. Its like the old adage has it, "use it or lose it." Arnold will be never this popular again so its time for him to start putting the screws to the Democrats in Sacramento. Because they need government more than Republicans do. Its THEIR livelihood.
Gov. Mark Sanford of South Carolina has kept his state's increase to a mere one percent. In recent history, only one politician has done better. Ronald Reagan actually cut spending by an average of 1.3 percent per year over his two terms.
Sanford faced a $155 million deficit from his predecessor the day he entered office, together with threats from credit rating agencies to lower the state's borrowing status. To close this gaping hole, he engineered passage of a "Fiscal Discipline Act" through a hostile legislature. He negotiated $139 million in repayment and issued 106 vetoes to cut spending to close the remainder of the gap. While the legislature overrode all but one veto, the governor did not stop there. He walked into the statehouse rotunda with a live pig under each arm to ask why the legislators could not cut unnecessary pork spending. While the spenders were squealing, the people loved it and granted the governor a 70 percent approval rating.
This is how it's done, not with posturing and handwaving, not with secret deals in a smoke filled tent, but with line by line deconstruction of bureaucratic empires. The Arndroids keep excusing Schwarzenegger with the Slave Party majority in the California legislature, while both Reagan and Sanford showed results under the same conditions. Submit a truly balanced budget, swing the veto ax on the contorted results out of the legislature, and pull apart every bureaucratic empire you can find, one by one.
All it takes is courage and priciple. Arnold hasn't either.
I agree with everything but the last part, as to which I reserve judgment. You, of course, still have a bug up your gazoo about the election, as we all know -- here's some pliers for that -- and have already made up your mind about him; I'm going to see how he does first.
Guess who has "a bug up your gazoo"?
This is the area where I'm most upset with Arnold. For heaven's sake, if the governor can't cut spending at least a little bit, with all the advantages he now has, then he may NEVER cut it. Cripes, popularity is meant to be USED (by politicians).
I'm going to see how he does first.
I give you more credit than that. I think you've almost got it, a year too late maybe, but I'm quite sure Arnold will drive that message home for me.
*L* Unlike you, I'm going to focus on what I hope for the state: that Arnold gets it together and gets Sanford-like. Is it possible he won't? Sure, and then I'll be disappointed. What disturbs me about you -- among many, many other things -- is that your desire to see solid reforms is dwarfed by your desire to dance an "I told ya so" dance here in FR.
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