Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

The penny drops [CA budget]
The Economist ^ | 7/26/2007

Posted on 07/28/2007 1:32:20 AM PDT by bruinbirdman

Partisan, debt-ridden and reckless

CALIFORNIANS like to think of their state as a democratic laboratory, busily inventing ideas that are copied elsewhere. When it comes to budgeting, though, the rest of the world should follow almost any other example. As The Economist went to press, the legislature was debating a budget that one senator described as having been written by chimpanzees. It is almost a month overdue. By California's standards, this is pretty good going.

Republicans are causing the delay, as in the past. Ignoring pleas from Arnold Schwarzenegger, the governor, Assembly members won some spending cuts and tax breaks. Then, while they hit the beaches, state senators demanded further cuts. Last week, in order to try to end the debate, the Democratic Senate president locked them in. Senators lounged around like teenagers at an all-night party, amusing themselves by sending messages to conservative blogs. “To update you—we've done nothing,” wrote one. They want a mixture of real and symbolic sacrifices—less money for environmental litigation and trade-union studies, for example.

Republican politicians are digging in their heels over the budget for two reasons. The first is that they can. California is one of only three states (the others are Arkansas and Rhode Island) that require a two-thirds vote in both houses of the legislature to approve a budget. Republicans are pushed around when it comes to legislation: since 1970 they have controlled the state Senate for just two years and the Assembly not at all. During the annual budget negotiations they take their revenge.

The second reason is ideological. California's districts are so shamelessly gerrymandered that hardly any races are competitive. The elections that matter are the primaries, which are dominated by zealots. The result is a political system in which moderation is punished, both by voters and by other politicians. Dick Ackerman, head of the Senate Republican caucus, adopted a co-operative, pragmatic approach to last year's budget negotiations. The result was a putsch that nearly dislodged him. Chastened, he promised to take a tougher line on this year's budget.

Republican spines are further stiffened by conservative bloggers such as Tom Del Beccaro and Jon Fleischman. Most bloggers rant and rave outside the gates, but in California they hold positions of power within the party: Mr Fleischman is the vice-chairman for southern California.

It would be nice to report that a small band of hard-nosed Republicans was bringing fiscal restraint to California. Unfortunately, it isn't true. Republicans have been better at pushing for tax cuts than at balancing the budget. This year the state spent a higher proportion of Californians' incomes than it has for more than a decade. And, having approved tens of billions of dollars-worth of bonds to pay for everything from stem-cell research to road mending, it is racking up ever more debt.

The Republicans are right about one thing: California's finances are a mess. Thanks to cuts in property rates, the state depends on personal income taxes for 46% of its revenues, more than in all but seven states. And because its taxes are so progressive, it relies especially heavily on the fortunes of the rich. “If the bottom drops out of the stockmarket, the bottom drops out of the budget,” says Jean Ross of the California Budget Project. Partisan posturing, debt and financial gambling: no way to run the world's eighth-largest economy.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS:

1 posted on 07/28/2007 1:32:22 AM PDT by bruinbirdman
[ Post Reply | Private Reply | View Replies]

To: bruinbirdman

Wasn’t it about ten years ago that the Republicans finally won control of the legislature but one scumbag Republican decided to caucus with the rats and keep Willie Brown as leader and the rats in control?


2 posted on 07/28/2007 1:38:06 AM PDT by Lancey Howard
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman
They need to do two things in California: abolish the state income tax and abolish property taxes. That will really shrink state government AND make California an affordable place to live again. No more boom and bust cycling budgeting. With those two reforms in place, California could again be the Golden State.

"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

3 posted on 07/28/2007 1:39:55 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lancey Howard

Yes. And Willie Brown is perhaps the worst California political figure in California’s history.


4 posted on 07/28/2007 1:43:11 AM PDT by DoughtyOne (Victory will never be achieved while defining Conservatism downward, and forsaking it's heritage.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: goldstategop

I wouldn’t argue with that, but I would add that state commissions and the land grabbing environmentalist movements be defunded as well. The state and federal government pour money into these efforts and property rights suffer.


5 posted on 07/28/2007 1:45:16 AM PDT by DoughtyOne (Victory will never be achieved while defining Conservatism downward, and forsaking it's heritage.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: DoughtyOne
Financing state government out of excise taxes would create a dependable revenue source. There will never be enough money for anything but the core functions of government. Like that's a bad thing.

"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

6 posted on 07/28/2007 1:48:05 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 5 | View Replies]

To: goldstategop

One of the best things we could do is limit the legislative session to about 45 days per year. Smaller government is better. Tiny government is best.


7 posted on 07/28/2007 1:51:23 AM PDT by DoughtyOne (Victory will never be achieved while defining Conservatism downward, and forsaking it's heritage.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: DoughtyOne
A part-time legislature would be a great idea. There's no reason for California's legislature to sit an entire year. The less time spent in Sacramento, the less time politicians have to think up schemes injurious and destructive to society's welfare.

"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

8 posted on 07/28/2007 1:56:57 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 7 | View Replies]

To: goldstategop

CA is broke. By the time you factor in the health care for retired state workers and the growing underclass tax consumers it will get worse.
The can’t tax their way out of it..taxes are too high already. The state is unattractive to most business.
The Economist blames the Republicans for trying to hold the line..without them the state would plunge even faster.
It is the Golden State no more. It is a Third world country..rich and really poor.


9 posted on 07/28/2007 2:09:38 AM PDT by Oldexpat
[ Post Reply | Private Reply | To 8 | View Replies]

To: Oldexpat
California’s in a financial crunch because of entrenched unions. There’s a union for everything, and they wield a heck of a lot of power. It’s made worse by the huge number of illegals in the state.

Slashing how the state spends money would be the first sensible action. I found it laughable that one of the few things that isn’t a union, the state lottery commission, is facing huge pressure to be reorganized so that more money can be fed into the school systems.

10 posted on 07/28/2007 2:31:07 AM PDT by kingu (No, I don't use sarcasm tags - it confuses people.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Oldexpat

I lived in San Diego in the late 70s. It was close to paradise then. Went out to Ranch Bernardo on business recently and took a look around - California has been lost. The rest of America should take note.


11 posted on 07/28/2007 2:35:48 AM PDT by tgusa (Gun control: deep breath, sight alignment, squeeze the trigger .....)
[ Post Reply | Private Reply | To 9 | View Replies]

To: tgusa

Ranch = Rancho


12 posted on 07/28/2007 2:37:26 AM PDT by tgusa (Gun control: deep breath, sight alignment, squeeze the trigger .....)
[ Post Reply | Private Reply | To 11 | View Replies]

To: goldstategop
They need to do two things in California: abolish the state income tax and abolish property taxes.

While you are at it get them to make the sun rise in the West. It's more achievable.
13 posted on 07/28/2007 2:46:59 AM PDT by Kozak
[ Post Reply | Private Reply | To 3 | View Replies]

To: tgusa

Could you elaborate a bit? It seems interesting. Thanks.

LLS


14 posted on 07/28/2007 4:37:17 AM PDT by LibLieSlayer (Support America, Kill terrorists, Destroy dims!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: goldstategop

Excellent suggestion! End Welfare (aka state employees) and get out of my paycheck, Nunez et al.


15 posted on 07/28/2007 1:09:57 PM PDT by MonicaG (In hoc signo vinces)
[ Post Reply | Private Reply | To 3 | View Replies]

To: LibLieSlayer

Biggest thing that comes to mind is the school system. As I remember, the San Diego public schools were among the nation’s best in the late 70s. My understanding is that political correctness considerations have basically driven them into the toilet. Immigration, very largely illegal, has totally changed the political landscape - just ask B-1 Bob Dornan. Great sport when I was there consisted largely of visiting friends in Chula Vista, sitting on their patios consuming adult beverages and watching the INS attempt to round up the constant parade of illegals hoofing it up the dry riverbed heading north.


16 posted on 07/30/2007 5:12:36 AM PDT by tgusa (Gun control: deep breath, sight alignment, squeeze the trigger .....)
[ Post Reply | Private Reply | To 14 | View Replies]

To: tgusa

I agree... and did you know Mississippi (my home State) has the highest per capita illegal population in the Nation? I understand far too well. We need to eliminate any reason these invaders find for staying here!

LLS


17 posted on 07/30/2007 6:19:36 AM PDT by LibLieSlayer (Support America, Kill terrorists, Destroy dims!)
[ Post Reply | Private Reply | To 16 | View Replies]

To: LibLieSlayer

Thanks, I was unaware of that. Byproduct of Katrina, or has this been going on for a while down there? I spent several weeks in Pascagoula in 2004 at the shipyard, but didn’t get out much.


18 posted on 07/30/2007 6:55:54 AM PDT by tgusa (Gun control: deep breath, sight alignment, squeeze the trigger .....)
[ Post Reply | Private Reply | To 17 | View Replies]

To: tgusa

I think it is a little of both.

LLS


19 posted on 07/30/2007 7:06:18 AM PDT by LibLieSlayer (Support America, Kill terrorists, Destroy dims!)
[ Post Reply | Private Reply | To 18 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson