A couple days ago I
wrote a post on the dysfunctional
state of the political process in California, or as our
fearful leader refers to it - Call
EE 4 Kneeya. The post was about the state budget debacle
which at that time was 80 days overdue and had the Republicans, the
Democrats and our Governator locked in a battle of (weak) wills, veto
threats, etc. to address our $15 Billion revenue shortfall. In case
you're interested, here's the outcome as of today.
Having rejected several partisan efforts at a budget with the majority Democrats trying to raise taxes, the minority Republicans trying to cut spending and the Governor trying to raise taxes and cut spending, the legislature submitted a compromise bill last weekend that the Governor threatened to veto. The legislature told him they would override his veto and he told them if they did he would veto each of the hundreds of bills on his desk for signature that the houses have passed in the past 1-2 year session. That was then.
Yesterday all three parties reached another compromise which gives a little to everybody except the residents of the state. Basically it's a budget designed to allow the legislators to get out of Sacramento for their long-delayed vacations and allow some of them to make a few stops in their re-election campaign (because of the way our state is districted, no seat ever, EVER, changes parties and no incumbent is ever challenged from within so until they die, are indicted or termed out, they are safely re-elected).
The new budget, which the Governor will probably sign this coming week amid much fanfare, removes one of the hokier portions of the previous compromise. That portion, referred to as an accelerated revenue enhancement option, would have increased income taxes for us this year and then refunded it next year, digging an even bigger hole for us to climb out of then.
So the Republicans can point to the new budget and say - 'See, no new taxes.' But instead they agreed to increase the rate at which quarterly filers and businesses must pay and a few other gimmicks that technically qualify as 'no new taxes'. They also agreed to borrow as much as $10 Billion from next years (projected) lottery revenue to pay the tab this year. In case you ever had any doubt about the lottery being just another tax on the mathematically challenged, that should help you decide.
The Democrats are howling that they cut everything to the bone - that substantial cuts were made to education and health care and welfare programs - but that's a lie too. What the Democrats call cuts are actually reductions to the increases they wanted. For example if they wanted a $100 million increase in spending for some specious program but they only got $80 million more, they claim the program sustained a 20% budget cut. Only in government circles can an increase in spending be referred to as a cut. The $143 Billion budget, as proposed, still adds .4% to next years spending over this years.
The Governor claims they gave him the reform tool he wanted to 'tighten up access to the rainy-day fund' so every time there is a budget shortfall they don't simply raid the coffers. But that too is a lie - first because after years of deficits the fund is all but non-existent and second, because the compromise still allows the fund to be tapped if spending exceeds projected revenue.
Hello! They're already
projecting at least a $5 billion shortfall for next years budget before
the lipstick has even been applied to this years pig. Nice job Arnie.
This budget makes no headway in addressing what has come to be the chronic plague of California, that our liberal legislators habitually outspend our income by ever increasing amounts. They were doing this even back when the money was rolling in from the real estate boom, which was paying off debts incurred during the dot.com boom, which was paying off debts from the previous real estate boom, which... well, you get my drift. But at least with this budget approved, the state can resume writing checks to medical clinics, day care centers, schools and other state vendors who haven't been paid since July 1. And the legislature, after a much needed vacation, can get back to what they do best -
Having rejected several partisan efforts at a budget with the majority Democrats trying to raise taxes, the minority Republicans trying to cut spending and the Governor trying to raise taxes and cut spending, the legislature submitted a compromise bill last weekend that the Governor threatened to veto. The legislature told him they would override his veto and he told them if they did he would veto each of the hundreds of bills on his desk for signature that the houses have passed in the past 1-2 year session. That was then.
Yesterday all three parties reached another compromise which gives a little to everybody except the residents of the state. Basically it's a budget designed to allow the legislators to get out of Sacramento for their long-delayed vacations and allow some of them to make a few stops in their re-election campaign (because of the way our state is districted, no seat ever, EVER, changes parties and no incumbent is ever challenged from within so until they die, are indicted or termed out, they are safely re-elected).
The new budget, which the Governor will probably sign this coming week amid much fanfare, removes one of the hokier portions of the previous compromise. That portion, referred to as an accelerated revenue enhancement option, would have increased income taxes for us this year and then refunded it next year, digging an even bigger hole for us to climb out of then.
So the Republicans can point to the new budget and say - 'See, no new taxes.' But instead they agreed to increase the rate at which quarterly filers and businesses must pay and a few other gimmicks that technically qualify as 'no new taxes'. They also agreed to borrow as much as $10 Billion from next years (projected) lottery revenue to pay the tab this year. In case you ever had any doubt about the lottery being just another tax on the mathematically challenged, that should help you decide.
The Democrats are howling that they cut everything to the bone - that substantial cuts were made to education and health care and welfare programs - but that's a lie too. What the Democrats call cuts are actually reductions to the increases they wanted. For example if they wanted a $100 million increase in spending for some specious program but they only got $80 million more, they claim the program sustained a 20% budget cut. Only in government circles can an increase in spending be referred to as a cut. The $143 Billion budget, as proposed, still adds .4% to next years spending over this years.
The Governor claims they gave him the reform tool he wanted to 'tighten up access to the rainy-day fund' so every time there is a budget shortfall they don't simply raid the coffers. But that too is a lie - first because after years of deficits the fund is all but non-existent and second, because the compromise still allows the fund to be tapped if spending exceeds projected revenue.
Hello! They're already
projecting at least a $5 billion shortfall for next years budget before
the lipstick has even been applied to this years pig. Nice job Arnie. This budget makes no headway in addressing what has come to be the chronic plague of California, that our liberal legislators habitually outspend our income by ever increasing amounts. They were doing this even back when the money was rolling in from the real estate boom, which was paying off debts incurred during the dot.com boom, which was paying off debts from the previous real estate boom, which... well, you get my drift. But at least with this budget approved, the state can resume writing checks to medical clinics, day care centers, schools and other state vendors who haven't been paid since July 1. And the legislature, after a much needed vacation, can get back to what they do best -
Well, that's my 2 cents worth. I could be wrong...
Gene
Wunderlich - Selling Southwest California Homes including
Temecula, Murrieta & The Southern California Wine Country
' Call EE 4 Kneeya Redux - Nice
Budget Boys & Girls'
THE
OPINIONS IN THIS
COMMENTARY ARE STRICTLY GENE WUNDERLICH's PERSONAL OPINION. WHILE ANY
REASONABLE &/or RATIONAL PERSON SHOULD AGREE, THESE VIEWS MAY
NOT
REFLECT THOSE OF ACTIVERAIN, COLDWELL BANKER RESIDENTIAL BROKERAGE OR
ANY LOCAL, STATE OR NATIONAL ASSOCIATIONS.
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