by Jack Lee
For the first time in 25 years the Democrats passed the California State budget on time and without any help from Republican lawmakers. An initiative passed last year by the voters allowed for a simple majority vote to pass the budget, making the minority Republican vote irrelevant. Had they not passed the budget by June 15th they might have suffered a loss of wages as a penalty.
Republicans said they strongly opposed the new budget because the budget did not address any key economic issues. Simply put, there was nothing in this budget they could support. The budget does not address reductions for overly generous state pensions, there was no reform to growing big state government, it does nothing to cap spending and there’s nothing in this budget for job creation.
Republicans wanted to see a lot of reform especially for loosening obstructive environmental regulations and rolling back the lavish pension plans the state can’t afford, but it wasn’t to be. But, there will be some new taxes! Democrats are going after online companies like Amazon to pay a State sales tax and there’s another $12 added to American’s already highest vehicle registration fees.
What this new budget says is, lawmakers are preparing for a tax revenue shortfall of 12 billion. Translated: California’s economy is getting worse, not better. So, if you didn’t like your job prospects or wages in 2011 good chance you really and truly won’t like next year’s!
Governor Brown has until the end of the month to sign the budget into law and in this time the Republicans are going to lobby Brown to make some concessions, possibly in exchange for extending some taxes set to expire.
Jack,
It was interesting to see this. I thought perhaps the democrats would wait a bit longer but apparently having the voters hit them in the pocketbook finally got results.
Jerry Brown now has to decide if he’s going to sign a smoke & mirrors budget, as he campaigned that he wouldn’t, or be responsible for the budget taking longer to pass. Not a fun dilemma, but one he could have avoided if he was willing to put the good of the state ahead of his politics. Republicans met with Brown, and there were a few willing to go along with holding a vote on tax extensions if only he would agree to modest pension reforms.
Sadly, Governor Brown sided with the public employee unions and told them that pension reform was not an option. Instead, his administration has targeted cuts in Republican districts, (county fairs, Bidwell Mansion) in order to harrass and scare voters into supporting tax increases. He’s not turning out to be a very effective governor.
The good news? Republicans held out against further tax increases on the people of California. Now if we could just get some tax relief we might actually be able to start putting people back to work in this state.
Public CEO.com said the governor vetoed the bill….I am wary of that but pleased.
Yeah, Steve … per Reuters …
“Today I have vetoed the California state budget. I do so reluctantly but with clear purpose. For a decade the can has been kicked down the road and debt has piled up,” Brown said in a video posted on YouTube.
He added in a written statement that the budget contained “legally questionable maneuvers, costly borrowing and unrealistic savings.”
“We look forward to looking at a budget that deals with the structural imbalance,” Zimmermann, a managing director at S&P, said. “Without fixing the structural imbalance, there will be ongoing problems.”
Brown praised Democrats for their effort but said it did not go far enough. Brown’s position has been that tax hikes should be extended for a few years or spending would have to be slashed. He urged Republicans to allow a state-wide vote on extending tax hikes.
“If they continue to obstruct a vote, we will be forced to pursue deeper and more destructive cuts to schools and public safety — a tragedy for which Republicans will bear full responsibility,” Brown said.
Democrats were disappointed by Brown’s veto, which effectively resumes a budget battle focused on the governor’s plan for tax extensions that Republican lawmakers had blocked.
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So, Steve, if you won’t come up with funding, i.e., tax revenue, to preserve the state parks system, you can see the Mansion close, and no sniveling.
Steve, I am stunned that Brown vetoed the budget! Wow, he actually rejected the dems budget. He said he wanted a real budget that would stand the test of time…amazing, absolutely amazing.
And I have to make plain, one of the things that pisses me off about the Repugs stance is their assertion that we will never again have the funds to maintain the state in the manner to which we are accustomed. This is nonsense. What we need is a structural fix to the effect that them has have … pony up. Like, for instance, those commercial property owners … what have been skating ever since Prop. 13 was enacted.
Libby,
It’s not just a question of higher taxes vs lower services, and Prop 13 isn’t to blame. We’re paying A LOT more for those services than we used too. People on the higher end of the payrolls in state agencies are making more money than ever, while the lower end got the shaft. Government greed is breaking the bank.
We need to return to the old day when a government job meant job security but not getting rich off the taxpayers. Then we’ll see a return to having the services we want at a reasonable cost to the taxpayers.
Governor Brown vetoed a bad budget by his own party. Good job. But now he’s holding up a state budget because he wants more money from taxpayers, which they don’t have, because he won’t allow reforms of what we spend on public employees. The unions own him. It won’t take long for Californians to see this.
Oh yes, and then there is the union factor….good comment Steve, that will no doubt come up very soon.
Libby’s Reutersquote, “If they continue to obstruct a vote, we will be forced to pursue deeper and more destructive cuts to schools and public safety…” is so much horse hockey. This is the same old song progressives pull out of their drama bag to scare voters into vote for tax hikes.
The budget is bloated. Make cuts by eliminating most of it. Show the people you can manage a budget with just the necessities.
State worker compensation packages are too generous. Education spending need not be cut if greedy state workers were willing to pay a bit more into their own pension and healthcare plans and if we eliminated all of the unnecessary, high paid administrative positions.
Public safety and closing public parks is also being used as a weapon. This crap has to stop!
Libby you are not only wrong…you are full of beans. If I remember correctly you said not long ago that you had purchased a little house. Get rid of prop 13 and you won’t be able to afford the property taxes within a couple of years. Nice time to suggest greater burdens on people struggling to keep their homes and in an industry that’s in the tank…just so you can stick it to a few wealthy people (as if they aren’t already carrying most of the burden)
Wow Tina, ‘5 bulls-eyes’ Way to GO!
Steve I too was stunned that Brown did what he did, but not so much at the Dem’s leaders asking ‘why’ Brown has not imputed more direction. Come on, he drew them a map, and they know the path he wants, spend less, tax a little more to catch up, but do both at the same time! However when he comes out and challenges the Repub’s (hope I spelled that right, I have seen other’s misspell it way to much) to vote for tax extensions but doesn’t mention those spending reductions along with it, sort of makes me wonder just what game he is playing on us tax payers verse those costly tax users.