California Republicans unveil budget reform package
I'm on a media conference call with Senate Republican Leader Dave Cogdill of Modesto and Assembly Republican Leader Mike Villines of Clovis. They're discussing a Republican proposal released today to reform the state's budget system.
As we all know, reform is needed because the Legislature and governor again will not meet this year's budget deadlines. Gridlock has replaced compromise in the Capitol when it comes to the budget. No wonder there's a $15 billion to $17 billion deficit.
The main points of the GOP proposal is to require a spending limit that restricts the growth of government spending to the combined growth in population and inflation in our state. The plan also would create a "rainy day" fund to save money in good economic times to be spent in poor economic times. The proposal also would mandate a temporary cut in sales tax when the state's debts are paid and the reserve account is fully funded.
The Republicans have a point about the Democrats' spending habits. The current system has the Legislature spending every dime in good years, with nothing left in a savings account for bad economic times.
But the answer to the state's budget problems is a much more balanced approach. Creating a rainy day fund that requires the Legislature to save money is a great idea. Lawmakers also should not spend more than the state takes in. Inefficient programs can't be scared cows. Reduce their funding or dump them altogether. Tax loopholes should be closed, even though helping millionaires buying yachts. And don't be afraid to impose a small and temporary tax increase to help close the budget deficit.
Meanwhile, Democrats and Republicans concede they will not pass a budget by the time the fiscal year begins on July 1. I say if lawmakers don't do their jobs, don't pay them. Now that's a budget reform that Cogdill and Villines ought to be pushing.
Comments
What do they propose to use as a benchmark for future spending growth? This could be a plan to keep the State permananently is a state of near-starvation - just enough to keep it alive, but not enough to thrive.
A true budget reform would address the revenue side of the equation, too. Republicans have to resist the urge to cut taxes in good times, as well as their aversion to closing loopholes.
Posted by: Mike D. | June 18, 2008 11:11 AM
The legislators want to solve budget problems by raising more taxes instead of looking at all the waste in the state budget. We've been limping for so long, taking from this fund to fund this other program, etc. For some reason, this state is in chaos when I see how it is run.
Posted by: A. Perales R. | June 18, 2008 2:27 PM
They need to bring in an outside accounting person to go over the needless spending andmake common sense revisions but the politicians in Sac wont give up that control. I am in total agreement that if they cant get the job done they shouldn't get paid. That is just a no brainer.
Posted by: Jackie Krage | June 18, 2008 4:39 PM
"Cutting waste" and hiring an outside auditor were what Schwarzennegar promised when he ran for Governor. Instead of finding lots of waste, though, he's proposing drastic cuts to education, health care, the State Park system and other programs we once took pride in.
Is this what we really want?
Posted by: Mike D. | June 19, 2008 7:02 AM
They tried that Jackie as far as I can tell she made sound recomondations and then was promptly ignored.
It was a lady Arnold brought in at the beginning of his term I think. I might be thinking of prison reform though.
Posted by: John Zacharias | June 19, 2008 8:13 AM
You're not imagining it, John. There was an outside auditor in the early months of the Gubernator's reign. I don't recall her proposals being that remarkable, though. Seems like it was mostly eliminating some smaller commissions, shuffling administrative responsibilities around, and giving the Governor power to make across-the-board cuts (which are the opposite of cutting waste, since they penalize efficient programs more than wasteful ones). It wasn't nearly what the Governor promised.
Posted by: Mike D. | June 19, 2008 9:40 AM