CA: Hold the line, GOP - Rapid growth in spending must be slowed

San Diego Union - Tribune ^ | 7/15/07 | Editorial

[NormsRevenge]

The Legislature has missed the deadline for adopting a 2007-08 state budget after managing to accomplish the task last summer. As in past showdowns, the media's impatience with Republicans who won't just give the Democratic majority what it wants could not be more plain. One account depicted the GOP's push for $2 billion less in spending – so the “operational” budget would balance – as a squabble over a “fraction” of state spending.

We think GOP lawmakers have a very powerful argument – one that's extremely similar to those made by the nonpartisan Legislative Analyst's Office. The state's finances are in terrible shape. Even if there is a $2 billion spending cut, the only reason the “operational” budget would balance is because of $4 billion in leftover funds from last fiscal year.

Unfortunately, doing anything about the state's chronic red ink is difficult because of media conventional wisdom, which holds both parties equally to blame because Democrats won't restrain spending and Republicans won't agree to tax increases. But thanks to a strong economy, revenue has gone up a stunning 32 percent since 2003. If state spending had only gone up 25 percent in that span, we would be running surpluses. Instead, spending went up even faster than revenue.

Another erroneous bit of conventional wisdom is that spending can't be controlled because of “autopilot” formulas that push costs up each year. This is only partly true. A 2006 LAO report concluded the state could easily meet all its legal funding commitments and craft a balanced budget.

Here's what should be conventional wisdom on this topic: The Democrats who control the Legislature just don't have the political will to produce a budget that doesn't create debt our children will have to repay. Good for Republicans for making this clear – if only the media would report it.