California's Budget Logic

The Washington Dispatch ^ | Jun 6, 2003 | Garth Eisenbeis

[Mark]

California's Budget Logic

Exclusive commentary by Garth Eisenbeis

Jun 6, 2003

Here in California, the majority party (Democrats) has overspent an ample flow of revenue to the state treasury. Over the past four years our revenue has grown 28 percent, but our Democrat Legislature and Governor have passed a series of budgets that have, during the same four-year period, increased spending over 37 percent.

Now the Governor and Democratic Legislative Leaders are asking for increases in several tax rates to fund their spending addiction. They have continually claimed that we have a revenue problem, but that is only true if you spend beyond the revenue available, and since revenues did grow by 28 percent over the previously mentioned period, it is incredible that there are claims that revenue is insufficient.

Governor Gray Davis lamented in his State of the State Address in January that California’s tax structure had not been revamped in twenty-five years. This was a veiled suggestion that Proposition 13, the popularly elected Constitutional Amendment limiting property taxes and setting a two-thirds voting threshold for all future tax increase proposals, was in need of reform despite the previously mentioned evidence to the contrary.

The facts actually show us a completely different picture. Between 1977 (the year before Prop. 13 passed) and 1999 (the latest year for which complete data is available), inflation and population grew at a combined rate of 235 percent. State revenues grew 448 percent, California city revenues grew 333 percent and county revenues grew 326 percent. [Data from “In Defense of Proposition 13” by California State Senator Tom McClintock 4/7/03.]

The aggregate increase in tax revenues to state, county and local government rose by 1,107 percent compared to the combined increase of inflation and population of 235 percent. That means all forms of government in California expanded by eleven times in 22 years, while the population and inflation rate only a little more than doubled. With numbers like that, it would seem unnecessary to create new “revenue enhancements,” as Governor Davis calls them, or tax increases, as everyone else knows them.

It is interesting, as I listen to the floor debate in the California Assembly over preliminary budget proceedings, that Republicans have truly substantive arguments for their positions. In response, Democrats ridicule the Republicans with such rhetorical arguments this from Assembly Speaker Herb Wesson: “I would like to thank the Republicans for offering entertainment for the media.”

The apparent lack of leadership in California’s Democratic Party is staggering and it is apparent that with four consecutive years of one-party rule that state Democrats have become drunk on power, very much in Soviet-style, handing out edict after edict to the detriment of California’s budget and taxpayers. Governor Davis and California Legislative Democrats have concluded that the tax structure in California is broken and needs to be fixed. The data refute this claim, showing that the California tax structure is generating much more than ample sources of revenue to fund government activities. Their argument that tax rates must be increased to prevent “draconian” cuts to “necessary” government spending programs that did not even exist four years ago is specious and disingenuous.

Garth Eisenbeis is a California Republican legislative analyst, dad, freelance writer, and soon-to-be (unfortunately temporarily) beach bum. He can be contacted by writing to feedback@washingtondispatch.com.

[Mark]

Here in California, the majority party (Democrats)....

There-in lies the problem.

[T Lady]

"California's Budget Logic..."

Logic? What logic? It's more like lunacy.

-Regards, T.

[mvpel]

Give 'em a good spanking: http://www.recallgraydavis.com

[Mark]

CA ping

[Ernest_at_the_Beach]

calgov2002:

calgov2002: for old calgov2002 articles. 

calgov2002: for new calgov2002 articles. 

Other Bump Lists at: Free Republic Bump List Register

[lilylangtree]

As a Washingtonian I understand your problems. WA is the "red-headed stepchild" of CA. Our RATS (until 2002 RATS controlled the governor's office and both House until the Pubbies took control of the Senate) spent over $1 billion more than they took in. They wouldn't cut spending but moaned ever so publicly about not enough revenue. After the regular session of the legislature adjourned and no budget passed, the RAT governor called a special session (spending add'l money) where a budget was finally passed. WA taxpayers get saddled with an increase of $.05 gas tax among other increases. The legislators get a pay raise in 2004 (they got one in 2003 too) Yet, the legislators of both parties say there wasn't any new taxes passed. I'm angry and frustrated.

[Fpimentel]

I signed and my wife signed the petition. I also donated $22 for the cause. I am hoping this is the beginning to a voter revolution over the next 4 years and beyond.

[NormsRevenge]

We already are spanking the butt of the head butthead. ;-)

[NormsRevenge]

First Davi$ and then, in the 2004 General Election, the rest of the demRatic Red horde of spending taXing socialzits in Stinkymento.

[NormsRevenge]

The apparent lack of leadership in California’s Democratic Party is staggering and it is apparent that with four consecutive years of one-party rule that state Democrats have become drunk on power, very much in Soviet-style, handing out edict after edict to the detriment of California’s budget and taxpayers. Governor Davis and California Legislative Democrats have concluded that the tax structure in California is broken and needs to be fixed. The data refute this claim, showing that the California tax structure is generating much more than ample sources of revenue to fund government activities.

[Bernard Marx]

I predicted months ago that repealing or "tinkering with" Prop. 13 would be the Democrat "solution" to the budget problem. How come none of the recent stories I'm reading about the CA budget crisis bother to go into any detail about Davis's mishandling of the energy problem and the mind-boggling debt he generated under cloak of secrecy? How come the media don't report what the ex-Flower Children in the Legislature are really doing to California's economy?Don't bother to tell me -- I already know. Our media here are N.Y. Times-light.

[NormsRevenge]

There is NO excuse for wanton disregard of the state's economic long-term welfare. We can not and must not let any chance go by that will let a message be sent to Sacramento , clear and certain, that this madness must stop... NOW!!!

[Parley Baer]

California's current budget and and the word logic to not go together in the same sentence. Kind of like oil and water. ;) Parley

[NormsRevenge]

The latest proposed budget by the demRats is still a 100 billion dollar budget. They just don't get it. But if they keep it up, They are gonna Get It! ;-)

[NormsRevenge]

Now, We're cooking! REcall signatures update!

[tubebender]

The facts actually show us a completely different picture. Between 1977 (the year before Prop. 13 passed) and 1999 (the latest year for which complete data is available), inflation and population grew at a combined rate of 235 percent. State revenues grew 448 percent, California city revenues grew 333 percent and county revenues grew 326 percent. [Data from “In Defense of Proposition 13” by California State Senator Tom McClintock 4/7/03.]

The aggregate increase in tax revenues to state, county and local government rose by 1,107 percent compared to the combined increase of inflation and population of 235 percent. That means all forms of government in California expanded by eleven times in 22 years, while the population and inflation rate only a little more than doubled. With numbers like that, it would seem unnecessary to create new “revenue enhancements,” as Governor Davis calls them, or tax increases, as everyone else knows them.

I have been wating for someone to post these numbers. Prop 13 is not the problem that the Rats claim. This one is getting bookmarked...

[Lancey Howard]

Great post.
Bookmarked.