Once again the state of California is without a budget, this time 25 days past its constitutionally mandated June 30 deadline. Governor Arnold Schwarzenegger, who came to power vowing to "clean up the mess in Sacramento" and "fix the crazy budget" is once again resorting to gimmicks and stunts rather than addressing the chronic root of the problem. And it could all be fixed so easily.
The first thing Arnold did after assuming office in November, 2003 was to roll back the auto registration fee, depriving the state of $6 billion in annual revenue. Even though severe cuts were made and university and community college fees were increased, since then the state budget has faced deficits nearly every year. This year the Department of Finance projects a $15.2 billion shortfall on a $101 billion budget.
The state constitution requires a balanced budget without borrowing, which has been "achieved" every year by the sale of bonds, a loophole that does not technically have to be called borrowing, though it effectively is, and winds up costing more in the long run. Arnold's gimmick this year was to propose "securitizing," or borrowing against, future projected revenues from the state lottery, and/or privatizing the lottery, the sale of which would provide some immediate money up front. Such a plan passes the debt off over a period of years but does not address the structural problem that revenues and expenditures never balance anymore except in very good economic years.
The Democratic majority in the Legislature feel that there is very little fat left in the budget after years of cuts. They want to raise taxes. Assembly and Senate Republicans refuse to consent to any tax increases and will not propose sufficient spending cuts to close the gap themselves. The celebrity governor has resorted to a new stunt. He says he will order the 200,000 state employees to all be paid the federal minimum wage of $6.55 an hour until there is a budget. The state treasurer says he will refuse the governor's order, since to reduce the workers' pay would entail breaking contracts and the state could be sued for back pay plus triple damages.
That is the current situation. You may be wondering why the Legislature doesn't just pass a budget and see if the governor will veto it. If so, then they could negotiate some compromises. The reason is because of problems in the state constitution and with redistricting. Constitutionally, California is one of the few states to require a 2/3 vote to pass a budget. There are 48 Democrats and 32 Republicans in the Assembly, and 25 Democrats and 15 Republicans in the Senate. It takes 54 votes to pass a budget in the Assembly and 27 in the Senate, so the Democrats need 6 Republicans to cross over in the Assembly and 2 in the Senate. Thus far none will. 60% support in both houses is not enough. One-third plus one can thwart the will of the heavy majority.
And of course, the reason no one on either side will budge is because all the districts in the Senate and all except one in the Assembly have been intentionally designed as safe seats for one party or the other. With only strong Democratic or Republican majorities to please in their constituencies no one is being pressured to compromise. Instead, all are rewarded politically for digging in their heels and being as stubbornly partisan as possible.
Two reforms are needed to break this impasse. The first is to allow the passage of a budget by simple majority, as practically every other state already does without calamity. There needs to be a new Proposition submitted to the voters to do this. The second is for the voters to pass Proposition 11 on this November's ballot, which would put redistricting into the hands of an independent commission rather than leaving it up to the legislators themselves. With these two reforms, the majority elected by the people could get its way and pass a budget. That is how a democracy is supposed to work. And with the districts more fairly and evenly drawn, that majority would be accountable. If the budget turned out to be a mess there would be a genuine opportunity for the people to give the other party the majority in the next election.
The annual budget charade and circus in California becomes increasingly tiresome, not to mention costly. These institutional changes would resolve the underlying dynamics that make the logjam all but inevitable every year. Perhaps this November will finally mark the beginning of solving the mess.
3 comments:
Excellent points. There are simple solutions out there that our allegedly sophisticated state has yet to figure out. While we're on the topic, can all those who voted for The Guvernator now admit it was wrong to vote in a trainee? I'm always astounded how in politics people think that lack of experience is plus on the resume. Do they also want brain surgery from a guy fresh out of medical making his first stab at a skull?
I clicked too fast. The last sentences should be:
I'm always astounded how in politics people think that lack of experience is a plus on the resume. Do they also want brain surgery from a guy fresh out of medical school making his first stab at a skull?
...if they take that long to make a decision then they should be voted out of the legislation! In the past 2 years they have raised their salary 28%. Why do they get to have more money while the rest of California suffers? Arnold has gone after all labor unions. College professors and correctional officers all suffer from these pay cuts and work furlough days. I don't see it helping California as people are keeping money for themselves and not spending it freely as they need it to survive. If the populace isn't spending money--how does the state expect to get out of this recession. All I see is excuses that are inconclusive. Problems are not being solved. California should make a statement by voting out every single one of these members. Democrat, Republican, or Independent--they all deserve to be eliminated from the legislation of California. If this happened, the legislation would be more ampt to make decisions in a timely manner as they realize that Californians are wise voters that want to see something accomplished!
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