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Frank D. Russo

The California Progress Report is published by Frank D. Russo, a longtime observer of and participant in California politics.

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Governor Schwarzenegger and the Legislature Should Meet in an Open and Public Process on the State Budget

Democrats and Republicans Should Put Cards on the Table

Blaming the Legislature (Or the Governor) Helps No One

frankrusso-small.jpg By Frank D. Russo

I am in a curmudgeonly mood this morning as I read charges and countercharges over the state budget. I fear we are going through the movie “Groundhog Day” again on the California state budget—what Governor Schwarzenegger likes to call a Kabuki dance.

There is a real disconnect here. And it’s not the kind that needs a constitutional amendment on spending or other distractions.

Here’s the problem. The Governor is jetting about to all sorts of staged events—he calls some of them townhall meetings—and appears before local Chambers of Commerce and the like. Throw in a few chats with the local newspaper editorial board. Avoid large crowds of ordinary Californians who you can’t control—and by all means don’t show up at community events where parents, teachers, school administrators, and ordinary citizens are talking about school budget cuts.

Depending on the mood he is in, the Governor will be charitable towards the legislature and say that none of them are irresponsible and want to spend money needlessly and that there will have to be real cuts that will be painful. Or he will insult them and say that they don’t know what they are doing and are a large part of the problem. Or he will say it’s the system, we need another constitutional amendment on spending, a rainy day fund set of rules, or some other panacea in the form of a ballot measure to be voted on by the people.

The Governor proposed the budget in January. He proposed mid year robo 10% cuts as well—with obvious non starters such as closure of many state parks and the like that were obviously done for political theater and had no chances of passage. He is roundly criticized by the Legislative Analyst, also known as the “budget nun” for abdicating any responsibility for making policy choices.

In February our dear Governor then hectors the legislature and calls for the impossible and the absurd—that they pass a state budget months ahead of schedule—in March—before the May Revise of the budget, required by law to be done by the Governor and based on the more accurate and up to date information on the state’s revenues and expenditures is known.

So, here we are. The legislature met, wrangled, some of it behind closed doors with the leadership and different caucuses discussing the mid year cuts. There was also a public process—hearings and floor debate. And, thank God, they made cuts to keep the state afloat and did so in a fairly bipartisan and responsible and respective way and that the two-thirds vote was there to do it. The alternative would have been unthinkable—the state defaulting on its obligations.

Now comes the really hard part. Getting agreement on a state budget.

If we repeat last year’s pattern, there will be a public process—an endless parade of budget committee and subcommittee hearings, looking at the budget in detail. We have already had dozens of such hearings in both the Assembly and State Senate and they will continue apace with witnesses from the California Department of Finance and difference agencies affected, and input from the public.

Then we will get at a crunch time—and there will be private meetings of the Big 4 or 5—Both party’s leaders in the Senate and Assembly and probably at times with the Governor. He has already invited them to sit down with him in private and begin this process.

Only last year, when we had a long impasse on the budget, there was one public proposal with all the lines of dollars and cents—that which passed out of the budget committees ready on time for a vote. There was another document that finally passed the Assembly with the required two-thirds vote. And after closed door meetings that became public. But not before Assembly Republicans were cagey and wouldn’t discuss budget cuts they said the Democrats had to make—it wasn’t their responsibility to say what they wanted cut.

Then the Republican Senate Leader at the time, Dick Ackerman, had a secret list of proposed cuts—one that was discussed in private—but never, to my knowledge released for the public.

After weeks passed, Democratic Senate President pro Tem Perata, called the Republican’s bluff and asked that they craft their own proposed budget and see if they could cobble together the two-thirds vote needed for passage. They couldn’t do so—and asked for more time.

One of the basic rules of negotiating is that both sides should make proposals. Then you talk and bargain. I’d like to see Assembly and Senate Republicans put forth a detailed budget proposal. And I would like to see it debated openly and publicly—and for the Governor himself to appear—at a legislative hearing or in a stadium or other facility with legislators and talk about their different visions.

I’m tired of the closed door meetings where no one wants to be responsible for the cuts—that are unpopular—and escapes public statements on and consideration of all the alternatives.

Instead, we have the Governor saying in recent days:

"Now even though I was criticized by Sen. Perata, who said, 'Boy, he should not mind our business. We know exactly what we are doing.' Well, obviously they don't know exactly what they are doing because otherwise we wouldn't have a $14 billion deficit. If everyone knows exactly what they are doing, we wouldn't have the budget mess in 2003 which created the recall election."

To which Dave Dayen has penned a wonderful article. Here is just a part of what he had to say, with the starting with the above quote of the Governor’s and Dave’s commentary in brackets:

[...based on budgets that I signed...]

“If everyone knows exactly what they are doing, we wouldn't have the budget mess in 2003 which created the recall election.”

[...which elected me so I could lead the state into exactly the same budget mess...]

"Sometimes you see schools protesting out there or sending me letters," Schwarzenegger said. "I'm with them. I wish I could stand there protesting, too.

[...but I'm too busy cutting their afterschool programs and music classes and firing their teachers, it takes up most of my day...]

“Because we have to protest the budget system. Not this year's budget. The budget system is the failure. That is what has to be corrected as quickly as possible."

Dayen then has this to say:

“I'm going to have to cut the snark and address this. In Schwarzenegger's little "rally the crew for the budget" tour, this above all is his message: in the midst of continuing budget crises, what you have to do is give me more power. Even though I've put the state under mountains of debt that won't clear up until you're great-grandchildren retire and stubbornly rejected any changes to an obviously woeful revenue structure, and even though my first act as governor stripped the state of billions in revenue and put us in the hole we find ourselves in, you should definitely invest all power to change budgets on a whim to me since I exhibited such good judgment.

“The Governor is absolutely going shock doctrine and trying to use this crisis as a pretext to expand executive power in exactly the same way that was defeated by the voters in 2005. And nobody should be surprised, since during the 2006 campaign he very explicitly stated that those discredited and unpopular proposals were "good ideas" that were merely implemented the wrong way. First the redistricting proposal was resurrected and now this.”

Another quote of the Governor’s: "It's not the fault of the people we're short on money. It's the fault of the Legislature and governor," Schwarzenegger said at the City Hall stop before continuing on to Santa Ana for a meeting with Orange County Register editorial and news writers. "I think we have screwed up a little bit."

And Dayen’s analysis of what is really going on:

“The amendment, which would require voter approval, would put a ceiling on state spending and grant the governor power to make midyear budget cuts. Surpluses in good years would be put in a "rainy-day fund" to cover expenses in weak economic years.

“Listen to this logic. It's the fault of the legislature and the governor that we have a serious budget deficit, and "I think we have screwed up a little bit," but the solution is to give the guy who screwed up singular power to screw up some more. That way lies madness.

“It's time to pay attention to this. We've been looking at this budget fight along a linear revenues vs. cuts standard, but Schwarzenegger has his own agenda. He was to empower the executive with almost unilateral control over the budget. This is a Bush-style power play. And it needs to be universally rejected.”

The Sacramento Bee described the Governor’s kabuki here very accurately: “He tried to disassociate himself from his own proposed cuts on education and social services, even insisting that he'd like to stand with the protesters who have rallied against him at the Capitol.” [Emphasis added]

We don’t need disassociation. We need reality. And I'd like to have our discussion in the public eye.

Posted on March 25, 2008

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