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Friday, May 16, 2008
Figments of political imagination rule budget politics

By Steve Pehanich
text only version

"A profession it is to disguise matters," said St. Thomas More of lawyers. It applies to politicians, too.

The Lord Chancellor of England --- a lawyer and politician, and patron saint of both --- knew his profession. Sacramento and Washington are both places where reality only occasionally makes an appearance.

In one of the latest demonstrations of misdirection, Governor Schwarzenegger has called for "creative revenue increases."

"Increasing taxes" is not a phrase that rolls easily from the mouth of any politician, so to hear it mentioned so frequently these days, even in camouflaged form, is a measure of the seriousness of California's budget crisis.

So, too, is the lack of legislative attention to other urgent issues. (Whatever happened to health care, education and infrastructure improvement?) In 2008, it's all about budget.

The Governor has proposed more reform measures. He rode into Sacramento on the crest of budget misconceptions --- the $4 billion car tax debacle --- and he hasn't been able to shake the budget curse that plagues California.

Why? Because accounting gimmicks, delayed payments and financial slight-of-hand have been disguised as a balanced budget for years in California

About 80 percent of the California budget is on autopilot. We have a built in deficit which means we are committed to spending more than we usually collect.

Lawmakers have had a lot of help in creating this situation. You and I, the voters of California, have agreed with many proposals to lock in funding for the issues we cherish - schools, libraries, parks and others.


Protecting one's interests is not the problem. Protecting it at the expense of the common good is. Securing more resources than necessary when others could use them is what most people find offensive.


The Governor would like to create a rainy day fund to correct built-in deficits. That's a perfectly reasonable suggestion (although it would be the third such fund in the state.) But at the same time, the Legislative Analyst Office predicts it may permanently lock-in the state's structural deficits.

Reverting to old habits is something you do when you can't make up your mind.

Of course, none of us likes taxes but reasonable people understand the need to educate children, care for the poor, keep roads safe, provide recreational opportunities and create the other services needed to run our communities.

What we don't appreciate is wasteful spending, unfair taxes, funding of special interest through political favors, and the like. Most Californians are perfectly willing to debate the matter. We expect the same of our leaders.

A Public Policy Institute of California survey released last month shows that nearly half of likely voters are willing to talk about new taxes in combination with cuts to balance the budget.

The same poll reveals slumping approval ratings for the governor and the legislature and a deep concern over the economy. In short, California voters are in a foul mood.

An economic downturn tends to have that effect.

When it comes to this year's budget it is far too easy to enter the doomsday mode: It's the end of the world as we know it!

It's serious this time, but these things do come and go. What we want to do is minimize suffering for those least able to care for themselves and not put more holes into an already leaking budget ship.

Some counties are considering eliminating programs for mental illnesses. Many local jurisdictions are trying to decide between police protection and recreation. Senior and disabled persons will not get cost-of-living increases. Teachers might be laid off.

A lot of this is posturing to frighten voters; but much of it is all too real.

Protecting one's interests is not the problem. Protecting it at the expense of the common good is. Securing more resources than necessary when others could use them is what most people find offensive.

California is one of only three states in the Union that require a two-thirds vote for a budget. Democrats are two votes shy of that in the Senate.

Last year pressure was put on a "moderate" Republican to vote with the Democrats. He didn't and now he is the subject of a bitter recall attempt.

That's politics as usual in California --- even a little harsher than usual. Signing pledges never to raise taxes and vowing not to cut spending is also the usual in Sacramento. But voters are not in the mood.

Grandstanding needs to be replaced with action.

Both the Governor's proposal and the alternative suggested by the Legislative Analyst Office deserve a careful, measured debate. Also deserving of a rational look is the two-thirds rule in budget approval, new taxes that are fair to all, and discussions on how to avoid situations like this in the future.

Steve Pehanich manages the Catholic Legislative Network, a partnership of the 12 dioceses in the state and the California Catholic Conference. Join at www.cacatholic.org.



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