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California's fiscal straightjacket. The initiative process has tied lawmakers' hands
LAT ^ | Jan. 14, 2006 | BILL STALL

Posted on 01/14/2006 8:53:48 PM PST by FairOpinion

Gov. Schwarzenegger breezed into office in October 2003 announcing that he hoped to fix dysfunctional California government with some simple reforms, including an overhaul of the state's budget structure. Now he finally has acknowledged that it's not so easy.

A major reason is that more than 70% of state spending, which totals a projected $126.6 billion in the fiscal year starting July 1, is already accounted for before he even begins the budget process. That money is mandated to be spent for specific purposes and nothing else. It's a fiscal straitjacket that makes it impossible for the state to make logical choices and put its tax dollars to work where they may be most needed.

.. Proposition 98 in 1988, fixed education spending permanently at roughly 40% of the General Fund budget. Proposition 98 still is a major factor driving budget-making in the state. In the coming year, state spending on education from kindergarten through community colleges will total about $40 billion, or a little more than 40% of the General Fund.

The governor says nothing will solve the state's budget problem "other than getting rid of those automatic spending formulas." The only way to do that is a sweeping reform of state government, something that is not on the horizon unless people begin demanding it. All California voters can do for now is to keep things from getting worse by rejecting the new ballot-box budgeting initiatives that are certain to come.

(Excerpt) Read more at latimes.com ...


TOPICS: Extended News; Government; News/Current Events; Politics/Elections; US: California
KEYWORDS: budget; california; itsnothisfault; schools; schwarzenegger
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Schwarzenegger is right. He tried to get rid of the automated formula for school spending with Prop. 76, which the CA voters, in their infinite ignorance, defeated.

Then some people blame Arnold for the budget, instead of putting the blame where it belongs, the voters, who swallow the Dem propaganda and vote in mandated spending, such as Prop. 98.

1 posted on 01/14/2006 8:53:50 PM PST by FairOpinion
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To: Alia; A CA Guy; NewzJunkie; doodlelady; Hildy

THIS is the real reason for the CA budget problems that some try to blame on Arnold. Arnold tried to mitigate this with Prop. 76, which was defeated.

"A major reason is that more than 70% of state spending, which totals a projected $126.6 billion in the fiscal year starting July 1, is already accounted for before he even begins the budget process. That money is mandated to be spent for specific purposes and nothing else. It's a fiscal straitjacket that makes it impossible for the state to make logical choices and put its tax dollars to work where they may be most needed. "


2 posted on 01/14/2006 8:56:40 PM PST by FairOpinion
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To: FairOpinion
the voters, who swallow the Dem propaganda and vote in mandated spending, such as Prop. 98.

Dims always want to spend other people's money. They want confiscatory tax rates on the wealthy in order to pay community college costs of the millions in CA. Just like getting the money for the Constitutionally mandated "free health care for everyone" mantra the Dims are so found of touting. Who will pay for free health care in the perfect Dim environment? We all know the answer to that - stop the trillion dollar war in the middle east and raise taxes. We are the wealthiest country on the globe and we need to have a Democratic government that will provide free schooling and free health care from cradle to grave to everyone, illegal and legal alike. Vote us in and we will give it to you!! /sarcasm

3 posted on 01/14/2006 8:58:53 PM PST by p23185 (Why isn't attempting to take down a sitting Pres & his Admin considered Sedition?)
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To: FairOpinion
Don't let the LAT suck you in too far. We would not have gotten rid of Rose Bird, Passed Prop 13 or Prop 187 without the initiative process.

It may not always work out the way we like, but with California's political mess (dems in charge) we sometimes have to take bad with the good.

It's my understanding that some of the 70% might actually be able to be reduced if a 'crisis situation' could be stipulated by the Governor and the Legislature.

It's also kind of disingenuous for the LAT to act like Schwarzenegger found out that things were a little tougher than he thought they'd be, in the face of democrat intransigence.
4 posted on 01/14/2006 9:00:17 PM PST by DoughtyOne (01/11/06: Ted Kennedy becomes the designated driver and moral spokesperson for the Democrat party.)
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To: p23185

The Dems keep coming up with more and more socialistic notions of taking away "from the rich" to "give it to the poor" and people still aren't discovering that anyone working is considered "rich".

Here is the latest proposition in CA:

Preschool measure makes June ballot (California -- tax "the rich" to pay for public preschool)

http://www.freerepublic.com/focus/f-news/1558199/posts
"The voluntary program would offer a full year of preschool to all California 4-year-olds, provided mostly by local school districts.

The initiative would boost the top tax rate by 1.7 percent on individuals earning more than $400,000 annually or married couples earning $800,000. That will raise $2.4 billion a year by 2010-11, when the measure would take full effect. "

The article in the LAT mentions this and actually makes the point, that:

"Tempting as it is, the state can only tap the wealthy so many times. "

Also:

"This year, two groups joined forces to press voters for an additional $2.60-a-pack boost in cigarette taxes to finance disease prevention, health insurance for children and to shore up faltering hospital emergency services."

All the Dems know is tax, tax, tax, and "socialize", i.e. have the government control everything.


5 posted on 01/14/2006 9:05:20 PM PST by FairOpinion
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To: DoughtyOne

"It's also kind of disingenuous for the LAT to act like Schwarzenegger found out that things were a little tougher than he thought they'd be, in the face of democrat intransigence."

====

Good point.

Of course Arnold knew about this all along, that's why he was pushing Prop. 76, which was a step in the right direction.


6 posted on 01/14/2006 9:07:12 PM PST by FairOpinion
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To: FairOpinion

That was my opinion too, although some didn't think so.

By one report that I read, we had judges handling reapportionment into the 1990s. I didn't hear anyone screaming bloody murder about it then.


7 posted on 01/14/2006 9:11:16 PM PST by DoughtyOne (01/11/06: Ted Kennedy becomes the designated driver and moral spokesperson for the Democrat party.)
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To: FairOpinion
All the Dems know is tax, tax, tax, and "socialize", i.e. have the government control everything.

I am currently going through the process of informing my 11 year old grandson how the DemonRATs know better how to spend our hard earned money for us, because we are so stupid we just don't know how we should spend it and are too selfish to share our hard earned money with the less fortunate lazy bums that like to live on the "dole". I purchased a good kids book entitled Help! Mom! There Are Liberals Under My Bed! which tells the socialism story in small kid story fashion. He is conservative so my teaching is easy - he got a good laugh out of the book, and even suggested some senator names for a couple of the characters.

8 posted on 01/14/2006 9:12:16 PM PST by p23185 (Why isn't attempting to take down a sitting Pres & his Admin considered Sedition?)
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To: p23185

Cute!

I vaguely remember a story about teaching the children about the Dems and their vision of the government.

It was something like explaining that under Republican administratio and limited government, the kid wants $10, the parent gives him $10 and he spends it on what he wants. With the Dems in charge, the $10 has to be sent to Washington, they take out at least $5 and the kid is lucky to end up with $5.


9 posted on 01/14/2006 9:15:43 PM PST by FairOpinion
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Comment #10 Removed by Moderator

To: FairOpinion

Prop 76, others may have had a different outcome if they'd been floated in a general, not special election.


11 posted on 01/14/2006 9:35:35 PM PST by umgud (uncompassionate conservative)
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To: FairOpinion
Yep, the ultimate blame must fall on the voters. Even the term limits initiative we have was unnecessary had the voters been doing the proper thing all along.
12 posted on 01/14/2006 9:46:50 PM PST by backtothestreets
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To: FairOpinion
Schwarzenegger is right. He tried to get rid of the automated formula for school spending with Prop. 76, which the CA voters, in their infinite ignorance, defeated.

Wrong. He tried to get rid of part of the formula: Test 3, the one that makes sure Education funding can NEVER go down. (Prop 76 also created more debt, authorized more bonds, and deferred more expenses).

Regardless of formulas, Schwarzenegger is giving more to schools than the formulas require. And this is HIS proposal. When the legislature is done with it, if history tells us anything, it will be higher yet. From the Legislative Analysts Office: Overview of the Governor’s Budget:

The main increase involves Proposition 98 education, where the Governor is proposing to provide $2.2 billion more than the minimum guarantee over the current and budget year combined. These added funds are proposed for such purposes as school district equalization, payment of past mandates, and cost-of-living adjustments (COLAs) foregone in past years.
And lets not forget that one of those formulas was a result of Arnold's own Proposition 49, After School Programs. Also from the LAO Report:
In addition, the budget provides $428 million in new spending for K-12 after school programs as required by Proposition 49. In the higher education area, the budget includes funding for the “buy out” of student fee increases for both the California Sate University (CSU) and the University of California (UC).

13 posted on 01/14/2006 9:55:24 PM PST by calcowgirl
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To: FairOpinion

Can they write a proposition that undoes all these diedicated funds.


14 posted on 01/14/2006 9:56:56 PM PST by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: calcowgirl

Correction. I wrote:

He tried to get rid of part of the formula: Test 3, the one that makes sure Education funding can NEVER go down.

What I was trying to say was:

Changes being proposed in Prop 76, elimination of Test 3, would have prohibited any reductions to total Education spending from the prior year. So, if population was way down, or revenues, or per-capita income... Education spending could not be reduced--ever!. Existing law (Test 3) does allow for reductions under certain circumstances.


15 posted on 01/14/2006 10:00:29 PM PST by calcowgirl
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To: A CA Guy

"Can they write a proposition that undoes all these diedicated funds."


===

I am sure they could, but unfortunately it would never pass. Prop. 76 was going to partially do that, and look what happened to it. One would think conservatives would have turned out in droves to pass it, but they didn't, and some on this very board voted against it, preferring the current untenable status quo, just so they can blame it on Arnold.


16 posted on 01/14/2006 10:02:11 PM PST by FairOpinion
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To: William Creel

"We need to break the unions, no matter how risky the move is, it'll help us all in the future."


===

Arnold understood that, that's why he put Prop. 75 on the ballot. Unfortunately the CA voters keep buying into the Dem propaganda and defeated it, along with Prop. 76.

These two propositions would have been a huge step forward in bringing CA back from the brink.


17 posted on 01/14/2006 10:04:18 PM PST by FairOpinion
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To: FairOpinion

I think the key is to way in advance educate the electorate over and over.
Eventually the union money train has to get derailed by the people getting fed up.


18 posted on 01/14/2006 10:04:58 PM PST by A CA Guy (God Bless America, God bless and keep safe our fighting men and women.)
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To: calcowgirl

So you prefer the current status quo, of the untenable budget straightjacket, right?

Obviously, since you voted against Prop. 76 and urged others to vote with the Democrats as well, to defeat it.

I am sure the Democrats and unions are deeply grateful to you, you served them well.


19 posted on 01/14/2006 10:06:17 PM PST by FairOpinion
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To: FairOpinion
The problem began in 1978 with the passage of Proposition 13....

No, the solution began in 1978 with the passage of Proposition 13.

20 posted on 01/14/2006 10:06:32 PM PST by Lancey Howard
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