California has been a very cyclical economy for quite a while now. We experience the highest of the highs and the lowest of the lows. Today, the University of the Pacific’s Economic Forecasting Center let us know that, yup, we’re in a recession. The PDF of the report is here, but it won’t really shock you. It simply acknowledges what most of us have known for a while: our economy is in trouble. (h/t SacBee) The report doesn’t really say anything major, it takes their prediction from slow growth to light negative growth.
While we may not be in a catastrophic position at this point, we can only harm ourselves by slashing our investments in the state. But rather than having the government run an organized program, you have cities like Davis independently organizing and fundraising for schools. Leaders in Davis are organizing a “dollar a day” drive just to keep the schools open and the teachers employed. All the while, the Republicans fiddle away in their obstinacy. Over at the Flash Report, Asm. Minority Leader Mike Villines writes that over their dead body will taxes be raised.
One thing is clear: Republicans will not support tax increases on you and your family. Our priority is helping California live within its means by cutting wasteful government spending.
We don’t believe it makes sense to create new government programs when we can’t afford what we already have.
We are also working to reform our broken budget system so that our state has the tools it needs to avoid severe budget deficits like this one. Republicans will propose common-sense reforms like a rainy day fund that can only be used in fiscal emergencies or adopting a pre-negotiated list of budget reductions that state leaders can implement during economic downturns to save the state from a budget crisis.
First, these solutions are nothing of the sort. Villines wants to create a rainy day fund? While it’s pouring outside? Brilliant, I suppose if you’re totally immersed in the water, you don’t notice the additional rainfall. So, perhaps we need to make good on the the rhetorical threat I implied from his writing: Taxes over the GOP’s dead body. We have the opportunity to hammer the GOP at the ballot box in the legislature in November, but there’s still the Governor hanging around. Sure, he’s willing to nibble around the edges, but unwilling to address the real need to reform our revenue system.
Villines writes that, “The contrast between the Republican and Democrat approach could not be clearer.” He is correct. They stand for firing thousands of teachers, Democrats stand for working to ensure the long-term stability of our education system. They stand for a crumbling infrastructure build around 1950s values, we stand for maintaining our assets and working to provide a long term vision. Republicans stand for social Darwinism without a net. Democrats understand that we cannot continue to think that it’s still “good times” with our revenue and not expect consequences.
Fiddle on Mr. Villines, but don’t expect Californians to pay the price of admission for that performance.