Posted on 09/06/2008 9:56:05 AM PDT by NormsRevenge
This week, the state budget impasse took on a poignant dimension with detailed coverage of the human toll of Sacramento's fiscal paralysis. The most alarming stories involve nonprofit health care providers under contract to the state to help tens of thousands of ailing residents. Without a budget, these providers are now being forced en masse to borrow money from any willing party to keep operating and keep their clients healthy.
But what these stories often left out is the state's ability to ameliorate this pain even without a budget. If Gov. Arnold Schwarzenegger and the Legislature were willing, stopgap funding could be approved to help these desperate vendors. That is just what Republican lawmakers have proposed.
So why isn't this being done?
Because the stories about budget-related suffering are practically the only ammunition the governor and Democratic lawmakers have left to convince the public that massive tax hikes are a must.
They may see this as a practical way to resolve a ruinous impasse. We see it as cynical. That's because even now – eight months after the 2008-09 budget debate began – we still haven't seen any plan that truly prioritizes spending and doesn't punish taxpayers for their leaders' irresponsibility.
There has been some progress. Democrats for the first time appear ready to accept a strong reform slowing and smoothing out spending growth, albeit in the expectation that the sales tax soon will be broadened to bring in far more revenue. The governor for the first time seems dead serious when he says he will never sign a budget that doesn't include such spending controls and a difficult-to-raid rainy-day fund.
But both also want a big tax hike in the form of a 1-cent increase in the state sales tax. Democrats say it should be permanent; Schwarzenegger says it should be phased out in three years.
Republicans, thankfully, remain opposed to tax hikes. But when they finally unveiled their own budget last week, it wasn't nearly as parsimonious as expected, given their rhetoric. It added $1.9 billion to schools beyond what is legally required under Proposition 98 and $140 million more in prison spending beyond what the governor says is necessary.
A budget that pared this extra education and prison spending while imposing long-term, permanent spending controls would be the first defensible proposal to emerge from Sacramento.
We offer two ready ways to improve it.
One would be the least obnoxious gimmick of those suggested this summer: leasing the state lottery to a private firm that would expand its offerings. It is not just a Schwarzenegger fantasy that such a deal could be vastly lucrative. The current issue of Governing magazine says experts think California could reap as much as $10 billion, far more than GOP lawmakers anticipate from their modest version of such a measure.
An infusion of that much cash over a four-or five-year period would be very helpful. When the payments stopped, of course, that would leave a hole in the budget. But by then – at least if it worked as billed – the rainy-day fund would cushion the impact.
Given the clout of teachers unions, our second suggestion for improving the GOP budget would be more difficult, but it would do wonders to protect and improve education: drastically reducing the dozens of K-12 programs that every district is forced to fund. Known as “categoricals,” these programs now consume about $15 billion annually. But their value is often marginal, forcing districts to bloat payrolls and neglect other needs.
No wonder a survey of California school superintendents showed that by a 3-to-1 margin, they would prefer more flexibility over the funding they did have to more funding. No wonder the Legislative Analyst's Office in February urged the Legislature to scrap more than 40 K-12 mandates to free up $2 billion in school funds.
This should have the first change lawmakers adopted in dealing with the budget crisis. But better late than never.
Here's hoping our suggestions get serious attention in coming days. A decent budget is finally within reach.
.. the stories about budget-related suffering are practically the only ammunition the governor and Democratic lawmakers have left to convince the public that massive tax hikes are a must.
Do NOT lease out the “state lottery”. It would no longer be a state lottery.
Lease out the prisons and jails.
There is a consideral drain on the taxpayers there.
Get Sheriff Joe to consult where they can cut down. He does a great job of it.
Got an email from my local assemblycritter. What a f%##in joke. “Republican budget cuts” was the subject line. I sent him back a rocket that I hope is still scorching Pedro Nava’s backsides. Bottom line we wither raise taxes or cut spending. Pick one. Personally I vote to cut spending. And btw don’t chop the important public safety programs to pay for your Democratic Party vote buying schemes. Grrrrr.
The California State Lottery is the worst performing lottery of all the states with a Lottery. Yes, let a private firm run it.
The Republican solution is to withold various payments to the Counties and expect them to borrow the money (currently at 20% interest) to run programs like their Road Departments. The Republicans say it’s ok because they will pay the Counties back sometime in the future. This is on top of the new practice of expecting counties to render welfare, human services, mental and public health services while the state lags reimbursenment payments for services rendered by 3- 6 months. Well it is not ok. The smaller Counties have already experienced several years of layoffs and are cut to the bone. Repubs. also want to raid funds passed by the voters under various propositions - like Prop. 10 and Prop. 63. Where are they coming from?
I think it is time that the Counties return all the Human and Health Services programs back to the state and have them deal with them.
That's Right!!!
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