Posted on 02/21/2004 6:19:29 AM PST by calcowgirl
Major players in Napa County's economic world are at odds over a proposed revamp of California's budget and taxation process headed for the March 2 ballot.
Whether Proposition 56 streamlines creation of a state budget in California or offers a blank check for legislators is at the heart of the debate.
Public employees are lining up in support of Proposition 56, while leaders in the wine industry say it's a bad thing.
Known as the Budget Accountability Act, Proposition 56 would lower the required majority of state lawmakers to pass the state's budget and related tax and fiscal matters from the current two-thirds to the smaller super-majority of 55 percent.
In addition, it would dock the pay of legislators and the governor if they are tardy with the state's budget.
David Baker, who heads Local 614 of the Service Employees International Union in Napa and Solano counties, represents 2,500 employees, most of them Democrats and most of them in the public sector.
Baker says perhaps even more important than the change in the minimum number of votes needed to pass a budget is the provision forcing lawmakers to forfeit salary and benefits for every day they are late in passing a budget. The measure would require the Legislature to stay in session until they have a budget. Public information on the process and individual voting records would also be more accessible.
"The Budget Accountability Act will break the cycle of gridlock and hold the governor and legislature more accountable for passing the state budget on time," Baker said.
Napa's primary industry is getting behind a movement to defeat Proposition 56. Tom Shelton, president of Joseph Phelps Vineyards, said, "Tax initiatives often target the wine industry, and they're often motivated by the old sin taxes."
Shelton fears that Prop. 56 will make it too easy for Sacramento to implement tax measures that would make it more difficult for businesses to compete on the state, national and even international levels. "We can't just pack up and leave the state," he said. "We're deeply rooted here."
Critics of Proposition 56 say it masks the real reason for a constitutional change -- making it easier for lawmakers to raise taxes. The two-thirds requirement is one of the few safeguards against unjustified tax hikes, say the opponents.
Also against the 55 percent plan are the heads of the California Taxpayers' Association, the California Chamber of Commerce and the Senior Coalition, as well as some education groups.
Citing the old saw that politics makes for strange bedfellows, Shelton said the wine industry has often been in the same camp as teachers, but they have parted company on Proposition 56. "We see this as a very damaging proposal," he said.
Baker said the union hopes to get Gov. Arnold Schwarzenegger's support. So far, the administration has remained neutral on Proposition 56.
The leaders of AARP, the California Professional Firefighters and the state's PTA have all endorsed Proposition 56.
Shelton said that money is being raised to defeat Proposition 56 through the Wine Institute, which represents a significant number of Napa County wineries. "We're trying to form coalitions and create consumer awareness," said Shelton, who added higher wine industry taxes mean less capital for investment, and ultimately less jobs.
Those favoring Proposition 56 say California is one of just three in the nation requiring a two-thirds vote for budget and tax passage and one of 11 requiring more than a simple majority. Baker and others say the 55 percent solution will make it easier for lawmakers to reach consensus on fiscal issues, and will keep the Legislature from being held hostage by a minority of lawmakers who under current rules would have the power to block passage of a budget or tax change.
The SEIU thinks they'll get Arnold's support for Prop 56?
Administration remains neutral?
Prop 56 will allow the legislators to increase taxes and resolve the budget with a majority vote of 55% instead of the 67% now required. Couple this with Prop 58 a balanced budget and guess how the budget will be balanced?
There are two ways to achieve a balanced budget, raise taxes or cut spending, If a vote of 55% of the legislators is all that is needed to raise taxes which way do you think they would go?
Prop 56 is giving away the store, the inventory, goodwill, and any sense of sanity.
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