Category Archives: Budget

A Response to Bill Lockyer and a Few Modest Proposals on the Budget Deficit

(brilliant ideas – promoted by Robert in Monterey)

In a recent report in the Bee, CA State Treasurer Bill Lockyer brainstorms ways to balance the state budget, including a suggestion that that we consider cutting the UC system off of all public funds, and having “public” universities raise their own funds by – you guessed it – raising student fees. As if the state hasn’t already kicked students in the gut repeatedly by jacking up tuition and fees, turning our public universities into de facto private institutions.

This from the same “Democrat” who proudly said he voted for Schwarzeneggar for the recall in 2003. And a graduate of UC Berkeley in 1965, back when tuition was so low as to be nearly free. But I guess those were different times, eh Bill?

But in a sense, Lockyer is right despite himself. The state infrastructure is woefully underfunded and underbuilt, given our growing population. We’ve got a 25 million person infrastructure in a 37 million person state, and we’re headed towards 50 million in the decades to come. Yet his proposals largely suck. So what else could we do, since we’re in modest proposal mode?

Lest I be accused of mere churlish sniping from the sidelines, I’ll bite:

1. Legalize pot and decriminalize all other drugs, with an amnesty for every inmate locked up in CA jails for the victimless crime of nonviolent possession of drugs. Tax the pot, and use the savings from the criminal justice system + new tax revenue to a) fully fund local addiction treatment clinics and clean needle exchanges, and b) pay down the deficit. Most of the social costs of drug use stem from their criminalization, not the chemicals themselves. Far better to deal with the actual addiction through medical treatment, leave people who can handle it alone, and tell the prison industry and the prison guards’ unions to find another cash cow to exploit.

2. While we’re at it, repeal the 3 strikes law that has clogged our prisons with nonviolent offenders. A new prison costs the same as a new college, and housing an inmate in an overcrowded cell block is around the same cost as educating a student. Instead of slashing public eductaion, why not reduce the % of the California population we’re warehousing?

3. Repeal Prop. 13. If that’s too scary for timid defenders of the status quo, afraid of what Howard Jarvis’s winged monkeys might say in attack ads, why not take a baby step and repeal it just for commercial property? Corporations never die, so why should they pay 1978 tax rates for eternity?

4. Pass SB 840, Sheila Kuhl’s Universal Health Insurance Act, which will remove a huge source of our growing state deficit, namely rising insurance costs for state employees, which effectively funnels budget funds directly into health insurance corporations’ profit margins, at a rate far exceeding inflation. Private health insurance is a huge part of the problem, and removing profit from the equation would help the budget planning process out tremendously.

5. Raise taxes, both income and (if you’re courageous enough) wealth taxes. There’s a ton of big money sitting around in this state, and for all the whinging about excessive taxes, our rates are fairly low compared to most other large urbanized states.

6. Stop borrowing money to pay for programs that could be funded outright; pay as you go with taxes. The “no tax” approach to the state costs us a huge amount more in the long run just on interest payments alone. Some things (infrastructure projects, for example) make sense with bonds and debt financing, but most of the initiative bond measure stuff should just be part of the regular budget. Which brings us to…

7. Change the 2/3 raising tax and budget supermajority requirements to simple majorities. Asking a virulently antigovernment, antitax, anti-public good Republican party rump have veto power on the state of California’s future is just absurd. If they want to dictate terms, then perhaps they should win a majority first.

Will Democrats follow any of these ideas? Probably not, but they’re all better than junking the state public higher eductaion system just to balance the books in the short term.

originally at surf putah

October 3, 2007 Blog Roundup

OK, I’m back, and today’s Blog Roundup is on the flip. Let me know what I missed.

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Wingnut myths never die

Sometimes I miss where I
grew up

The CA Dem leadership’s
pet project

Inmigración

The Art of the Possible

Local Stuff

Schools

Environment

Other (not less
important, just other)

Further Budget Crash

The current budget as signed relies on revenue growth TWICE (5.8%) the rate of last year (2.4%). This budget is relying on something nonexistent. According to the monthly controller’s report we so far are taking in .4% LESS revenue than at this time last year. Making our current budget deficit $5.837 billion covered by internal borrowing

Hate to say I warned you so, but I warned you so. Get ready for insolvency

September 5, 2007 Blog Roundup

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Oh, it’s all about the
electoral “reform”

California Dem
Leadership’s Pet Project

Things that should
matter, but which freak people out so badly that they don’t like to
think about them

Health Care

15% Doolittle

Things to think about

All the Rest

September 4, 2007 Blog Roundup

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The One Two Thing[s] to Read
Today

The Dignity of Labor

Health Care

The Environment

Electoral, Term Limits,
Redistricting Iniative “Reforms”

CA-03 and CA-04

Everything Else

August 30, 2007 Blog Roundup

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Budgets are Moral
Documents

Health Care

Voting Integrity

Electoral “Reform”

Energy &
Environment

Iraq

Fifteen Percent Doolittle

Local

Everything Else

Steve Lopez Would Like To Award The Certificate of Merit

Today’s column in the LA Times takes the Governor to task for his unconscionable cut of homeless services that were working and saving money, in favor of a tax loophole for Dick Ackerman’s yachting pals.  Lopez has spent lots of time on the streets of Skid Row, and gotten to know the homeless people that struggle to survive down there.  One of them, Bill Compton, died Monday, and it’s grimly ironic that this happened at the same time that the program inspired by his successful move off the streets had its funding cut.

Bill Compton’s Project Return helped pave the way for AB 2034, which, until its funding was cut by Schwarzenegger last week, was keeping nearly 5,000 people off the streets of California with a smart mix of housing and all the necessary support services.

The governor’s staff has argued that the program can be funded with other revenues, such as money from the voter-approved Mental Health Services Act (Proposition 63). But state Sen. Darrell Steinberg, who introduced AB 2034 when he was in the Assembly, said the latter ploy is both illegal and a subversion of voter intent.

“I was sick to my stomach for two days,” said Steinberg, who believed until last week that the governor would be on his side, particularly since the program has substantially reduced hospitalization, incarceration and criminal justice costs for its participants.

For exciting yachting news, the flip…

Lopez then visited the Marina del Rey yacht club and did a little reporting about what was kept in the budget at the expense of getting homeless people off the streets:

If the governor was looking for savings, he could have taken his scalpel to an estimated $45-million tax break for purchases of yachts, planes and RVs.

To find out just how the break works, I called a yacht company in Marina del Rey. A sales rep told me I would have to buy the boat outside of California, but there’s a loophole available in that regard. Technically, he said, if I took ownership of the boat three miles off shore, I’d be out of the state.

In other words, if I wanted to buy a $100,000 sailboat, I would sign the contract at the shop in Marina del Rey and then navigate around the tax bite with a little vacation.

“We would effect delivery out of state, three miles out, with a hired skipper who would take you out,” the salesman explained. If I then sailed down to Mexico for 90 days, I’d avoid the sales tax of $8,250.

That’s roughly the cost, Van Horn told me, of keeping someone in the AB 2034 program for a year, if you count the matching Medi-Cal funds.

May Bill Compton rest in peace.

This is why Dick Ackerman – and Arnold Schwarzenegger – deserve the certificate of merit for being rich and not homeless.  The creativity with which they engineered yet another tax cut for the wealthy while dismissing those who are in vital need of help must be recognized with some sort of award.  There will be a special place in the afterlife for those who put this together.  I won’t say where.

August 29, 2007 Blog Roundup

Today’s Blog Roundup is on the flip. I’m afraid I’m in an all-day seminar for my day job and I’m trying to just work this in between lectures, so it’s pretty much a link dump today. Let me know what I missed.

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August 27, 2007 Blog Roundup

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Budgets are Moral Documents

Health Care

Electoral College “Reform”

The Silly Season Is
Already Upon Us

Fifteen Percent Doolittle

Local

Everyfink Else

Walters: Not Worth Fixing 2/3rds Rule

David hits Jim Boren for a “pox on both your houses” column.  I  guess there is something in the air, because Dan Walters has a pretty similar one today.  Walters starts off pretty strong, bashing Arnold for is failure to live up to his “reform” campaign promises and contributing to the dysfunction.  Then he decides to tackle the 2/3rds rule and concludes that changing it will be just as bad.

It is, critics say, undemocratic, and they have a point. But in a crude way, the two-thirds vote does provide at least some check on what probably would be an even less seemly process were it to be replaced by a simple-majority vote, giving the majority party full power. This year’s melodrama indicated what would happen.

Democrats clandestinely loaded up the budget “trailer bills” with all sorts of extraneous stuff, some of it pork barrel spending and some of its completely disconnected to the budget, but the GOP Senate holdout at least gave the public and the media an opportunity to examine the bills in detail, and some of the more questionable items were removed.

I don’t know what world Walters is living in, but the Republican holdout was not over the trailer bills.  The ability to look at the makeup of the bills was an unintended benefit.  The overall cost to the state was much worse

Without the 2/3rds rule there would not be a big time crunch on passing the budget.  There would only be two sides for negotiations: the Democrats in the legislature and the governor.  Now that assumes Democratic control of both houses, but really, that is a pretty safe assumption.  That should eliminate the ability to ram through trailer bills and also the need to create side deals with the Republicans.

With a simple-majority vote, we probably would see a return to the secret drafting of the state budget that was commonplace before reforms were installed in the mid-1970s, giving California something akin to the corrupt “earmarking” and other noxious practices of the federal budget.

Were the two-thirds vote to be abolished, therefore, we would need some process safeguards to replace it, including a full public airing of the trailer bills before their passage.

We need a full airing of all bills.  There is nothing special about the trailer bills.  If there is a real issue with earmarking, we need to put a rule in place for disclosure.  We should know who is asking for what and let them defend that request.  I agree with Walters that there needs to be sunshine, however that should not stop us from working to eliminate the 2/3rds rule.  If conservatives are worried about earmarking, that should be included in negotiations.  I doubt that they would find a whole lot of opposition, after all that’s what the Dems have been pushing for on a national level.