Posted on 12/10/2008 7:50:11 PM PST by SmithL
CALIFORNIA IS FACING a $27.8 billion budget shortfall over the next two years and the prospect of shutting down a number of key public works projects, including the fourth bore of the Caldecott Tunnel, later this month. Perhaps now our lawmakers in Sacramento will begin to face reality and adopt a budget.
Unfortunately, neither the Legislature nor governor have been keen on dealing with the real world when it comes to piecing together a balanced budget.
Over the past few years, state budgets have been "balanced" with borrowing, raiding voter-designated funds, delaying payments, creative bookkeeping and a lot of wishful thinking about future revenues. But there is no way to wish away a faltering economy that is reducing tax revenues while demands for more spending continue unabated.
It is long past time for our leaders in Sacramento to take a hard, realistic look at why this state is in such a fiscal bind. California has some of the nation's highest income and sales and business tax rates. Local property taxes are above average.
Yet California spends less than the national average per-student on K-12 schools and near the bottom in per-capita investing in basic infrastructure.
Other states with lower tax rates and more robust support of schools and public works projects are not nearly in as bad a shape as California, even with a recession.
Democrats in the Legislature want to increase taxes substantially despite the negative impact it will have on a weak economy. Republicans are adamantly opposed to tax increases in the face of huge deficits. Gov. Arnold Schwarzenegger is calling for a combination of budget cuts and a massive, regressive sales tax hike.
The result has been an impasse in the Legislature, where compromise and cooperation have been in short supply.
It should be clear to lawmakers that revenues will need to be increased to meet basic demand. It should be equally obvious that those demands can be met even with decreased spending.
More important, however, is the need for the Legislature and governor to reform the budget process to prevent huge increases in spending in good times and overcommitting revenues to rapidly growing programs when there is a shortage of funds in a weak economy.
In other words, a firm cap on spending increases is essential to a workable budget process in the future. It also seems to be the best way, perhaps the only way, to get enough Republican votes to agree to at least some temporary tax increases to fund essential programs.
Assembly Republican leader Mike Villines did not commit to any compromise on taxes, but he has opened the door. He is demanding a number of concessions from Democrats on budget cuts, work rules and environmental regulations as well as a strict, long-term ceiling on spending increases. If Democrats agree, only then will he discuss new taxes.
Villines is not likely to get Democrats to accede to such a list of demands. But all Republicans might not be so intransigent.
We suspect that if a strict cap on spending increases that is tied to population and inflation or total state income is approved, and there are considerable budget cuts, enough GOP votes for some kind of tax increase will be forthcoming.
It is a deal well worth consideration. It requires difficult compromise by many legislators but it would help break the deadlock over the current budget and go a long way toward preventing future fiscal disasters.
We hope our lawmakers are up to the challenge.
They can never stop spending. They can never cut spending. It will have to be a total default and insolvency to get some reality into the picture.
1. Eliminate benefits for illegal aliens, except any emergency care needed to get them back across the border. (save $14 billion a year)
2. Privatize two prisons to save money. Then rinse and repeat. (save 1-3 billion a year)
3. Increase the age for peace officer retirement from 50 to 57.
4. No travel expenses for legislators living within 35 miles of the capital.
5. Eliminate the boards and commitees every republican governor has promised to eliminate.
6. 1-house 100 members legislature meeting six months every two years.
7. Eliminate the elevator operators in the capitol building.
8. Reduce state peace officer pay by 7%.
9. Reduce other state employee pay by 5% for everyone making over $3,000 per month.
10. Eliminate contributions from public employee unions to those who negotiate and approve their contracts.
11. Freeze all pay and benefits for state employees until 1 year after the state balances the budget.
12. Reduce the state legislators pay to $50,000 a year.
13. Eliminate the state legislator's vehicle allowances. Provide gas mileage expenses as paid to state employees.
14. Eliminate the state capital gain tax.
15. Reduce the state income tax by 1% in each bracket.
Agree on all points
Enough said:)
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Your list should be blast emailed to every newspaper radio station and idiot legislator in this state.
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