Posted on 07/02/2003 4:41:23 PM PDT by John Jorsett
Roger Hedgecock was talking about some interesting developments in Sacramento. Seems that the Democrats and Davis are actually considering a "no new taxes" budget, since the alternative, with the Republicans standing fast, is no budget at all. According to Hedgecock, Davis has told the public employees that they're going to have to forego their expected pay raises for a year. When the employee unions balked, he threatened to start firing people. To understand what's going on, you have to know that the CA state bureaucracy keeps what are called "pahntom" employees around. These are funded positions, but which have no personnel in them, and are used as a slush fund of ready money for whatever wild hair the bureaucrats get up their ... well, let's say noses. In the past, when the state wanted to make a show of "laying people off", it would just abolish their existing positions and then the employees would be shifted into the phantom positions. No one would really lose his job. Now, Davis has taken the "phantom" money off the table and told the unions that unless they "voluntarily" forego the raises, the laid-off people are going to have nowhere to go and will actually be off the payroll.
As Hedgecock says, none of this would be happening had the recall effort not been instituted. We've hit him so hard between the eyes that he's willing to piss off his biggest supporters, the public employees unions. Thank Ted Costa, Darryl Issa, and the Republicans of the assembly for presenting a united front.
(The Dems know the'll find 6 Assembly Reps before they find 2 Senate Reps.)
Well this is a start. However in Davis-speak the $4.2 Billion tripling of the car tax is considered a tax cut, so they need to go a lot further than just “no new taxes”. They need to cut spending – a lot. Revenues have increased 25% while spending increased 40%. This tells me they are still taking in way too much of my money, AND outspending the amounts they are overtaxing me. They need to reduce the salary increases, and cut real employees as well as the “phantom” positions.
The same people who created all other positions. If you can find an org-chart, you will find positions which are *vacant*. These positions are *expected* to be filled sometime during the fiscal year. However, things change, and many are not filled. Also someone may leave and is not replaced.
I guess a drowning man will grasp at anything to stay afloat. I heard the other day that the State of California is going to offer golden handshakes. I'm assuming this is to draw down the number of State employees.
Thanks for posting the summary of the news. I heard the show, too, and I thought only Davis was moving toward that type of budget, but the rest of the democrats weren't.
Also, as a clarification, Davis is only reducing spending with this proposal, not necessarily reducing taxes. He's not backing off the car tax, either.
All this had me wondering: if Davis shows some leadership and gets a budget with no new taxes (except the car tax hike), will it help his chances of surviving the recall election if it's held this fall? He can say he saved us from any new taxes (and try to label himself a fiscal conservative) without really hurting any employees or making any noticeable change in government services.
Bill Clinton developed a different kind of bone with public employees.
should have been: not necessarily preventing new or increased taxes.
Bid to resolve state budget stalemate: tax flip-flop
Davis, lawmakers consider revenue swap to avert tax boost
http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/07/02/MN116044.DTL
Davis and the democrat State Senators were considering the idea, but Herb Wesson and the Assembly democrats weren't.
The Democrats haven't rejected it outright, which is 'considering' it by the standards of what's gone on recently.
Also, as a clarification, Davis is only reducing spending with this proposal, not necessarily reducing taxes.
Absolutely. I'd no more expect him to reduce taxes than to cut off his arm. But it's an acknowledge he isn't going to get any new revenue (with the exception of the car tax, which we voters are going to abolish through initiative anyway). No additional taxes would be a major position change from where's he's been.
All this had me wondering: if Davis shows some leadership and gets a budget with no new taxes (except the car tax hike), will it help his chances of surviving the recall election if it's held this fall? He can say he saved us from any new taxes (and try to label himself a fiscal conservative) without really hurting any employees or making any noticeable change in government services.
I'd definitely expect him to try the "I saved you from further taxes!" ploy. Whether it would succeed or not, there's no telling until the election. At the least, he wouldn't take a further hit as he would if the budget impasse sends the state over the brink into functional bankruptcy.
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