CA: Policy trumps financials in budget - Spending, taxes give way to labor, local government

Sacramento -- In a budget that eclipses $78 billion, the few key issues that lawmakers and Gov. Arnold Schwarzenegger are deadlocked over don't add or take away a dime from the overall spending package.

The fact that policy issues -- such as whether workers should be able to sue their employers for workplace violations -- are holding up the budget have some Capitol observers puzzled over why the deal hasn't been closed yet.

"There seems to be a lot of confusion in the negotiations," said GOP political consultant Kevin Spillane.

The battle over whether to raise taxes or how deeply to cut government spending -- things that typically lead to prolonged budget stalemates -- has largely been settled. By borrowing billions of dollars and further delaying budget reforms, Republicans have prevailed on their demand not to raise taxes and Democrats have turned away severe spending cuts.

Local government financing -- In exchange for giving up $2.6 billion in tax revenues over the next two years, local governments want constitutional protection against future takeaways by the state. Republicans and local governments want a three-fourths vote of the Legislature before the state can borrow money from cities and counties. Democrats want a two-thirds vote.

Counties and cities have hit rock bottom in their funding to be able to function. Union agreements on retirements and benefits and the skyrocketing cost of workers comp. and other insurance create automatic annual increases in expenditures, while revenues have flatlined or decreased. Equipment, travel, training and other "easy" short term cuts have already been made. Staff has been reduced by attrition or layoff. The only thing left is to cut essential staff. (And I mean essential. For instance, our Planning Dept. now only has 2 planners where it used to have 5.)

The Democrats want to continue with an easy way to raid County funds as they have since Prop. 13. The golden goose is dead as far as that is concerned. We have gotten down to the point where public health and safety will be in jeopardy if any more is raided.

Lydia's agenda or ignorance is plainly showing.

This is either one smooth con lady or one dumb broad if she wants us to believe that the division of property and consumption taxes are a policy matter and don't add or take away a dime from the overall spending package.

If local governments don't cooperate (that means sue if you're from Fresno) then about 6% of Schwarzenegger's budget goes up in smoke. You damn bet this fight over the division of local tax revenues is all about taking lots of dimes away from the budget.

Best not elect Ms. Gledhill to any high political office. She's barely hanging on as a reporter in Baghdad by the Bay.

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