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Cavala: Panetta ‘Reform’ Commission Rehashes Old Issues, Provides No Realistic New Ideas
By Bill Cavala
A veteran of over 30 years in Sacramento
Well, now we have it: the solution to California’s budget deadlock as provided by an elite class of “bipartisan” gurus lead by former Clinton Chief of Staff Leon Panetta.
Editorial approbation will soon follow. Then, when the advice of this group of elders falls upon deaf ears and a harsh, partisan budget fight ensues, the proposals will serve their true purpose: a big stick with which the press corps can use to beat our elected officials about the head to lay the groundwork for yet another ballot measure solution.
What are the proposals and why are they silly? Let’s take them one by one.
(1) Out of control costs”. We must, says Panetta, “make sure the state doesn’t commit programs it can’t support”. Like tougher prison sentences? Of course, when a ballot measure was presented to voters just a couple of years ago to save money by reducing prison time (and expense), it was rejected decisively by voters. So the tough sentences remain, as do the costs – soon to be paid for by taxpayers at the insistence of Federal Judges.
Or the costs of public education. 40% of our general fund revenues are spent on k-12 schools by law. (the Pesky voters again). We can decline to do it in any given year, only at the expense of repaying the total cost – plus interest – in the future. Thoughts of new taxes to solve budget shortfalls must always include the fact that 40% of those new revenues must go to the school system
This fall, voters will be asked to rule on a series of ballot measures that will increase general fund expenditures on behalf of bonded indebtedness. If they pass, then lawmakers will have to deal with the consequences. Are Panetta and his colleagues prepared to recommend a blanket ‘no’ vote on all these initiatives? Are the economic dangers of initiatives even glanced at by Panetta and his colleagues?
(2) The “volatility” of our revenue system requires better management. Perhaps so. Unfortunately, the economists of the nation aren’t very good at explaining the causes of volatility except in retrospect (otherwise, they’d all be rich instead of working). The increase in income tax revenue in the late ‘90’s was not perceived as a temporary ‘spike’ at the time. The current depression in tax revenues was not predictable even a year ago.
The other solution to “volatility”, according to Panetta, is to “modify the tax system to reflect the current economy”. I think that means we should extend the sales tax to services – increasing revenues as we do so. This proposal would lead to a spirited debate among Democratic lawmakers (which services?) if they could find so much as one Republican lawmaker who wanted to join in that debate. They can’t. If new taxes are part of the solution, then the Republican Party is part of the problem. Committed to “bipartisanship”, Panetta and his colleagues have to hide from this fact.
(3) The “short term fix” nature of our current budget debate. Panetta’s solution is to “increase public awareness” of long-term commitments. Does this mean opposition to the “bullet train” bond? The failure of lawmakers – as opposed to the public - to consider “long term impacts” may have something to do with their own short-term life in public office. Look at today’s “big five” meetings: a lame duck Governor, a termed out pro-tem, two GOP leaders who lead a group of politicians unwilling to consider ANY of Panetta’s solutions, and a Speaker new to budget deliberations. Long-term perspective? When Willie Brown confronted George Deukmejian during the budget crunch of ’83 he’d served in the Legislature for 17 years, served on the Budget Committee for eight years and chaired it for four. That made a “long term” perspective possible.
(4) The budget does not set “clear priorities” or ensure dollars are “best spent to achieve results”. The recent release of statistics on the graduation rate of high school students indicates we are losing ground: a third of our high school students fail to graduate – higher in our largest school district – even though we spend 40% of our budget on schools. Should we spend more? Should we seek repeal of the ballot mandate that we spend at least 40% of our tax money on schools? Panetta and his group are silent on this issue – the single biggest budget issue.
(5) Lawmakers spend too much time on minor issues rather than seeing money is well spent and seeing it is better spent in the future. We need more “legislative oversight”. “Oversight” by Legislative Committees really means oversight by the majority party of the actions of a Republican Administration. Speaker’s Bustamante and Pro Tem Lockyer set up a staff task force in the mid 1990’s to oversee the Wilson Administration’s work. Wilson spokesmen decried it as a “partisan witch hunt”, refused to comply with public records requests, and generally stonewalled efforts to eliminate waste, inefficiency and corruption.
Oversight work has foundered since Speaker Hertzberg, as later Speakers sought modus vivendi with Governor Schwarzenegger on budget and policy issues and sought to avoid oversight activity that could embarrass him and harm what was believed to be a beneficial personal relationship.
None of the above is ‘news’. So clearly the Panetta group is not out to provide ‘neutral’ counsel to the Republican and Democratic leaders of the Legislature. Rather they are setting the stage for yet another ballot measure effort to fix the ‘problem’ by meddling in the internal workings of the Legislature. Aided by a Capitol Press Corps eager to seize upon any critique that justifies an appropriately cynical attitude towards anyone elected by voters.
Bill Cavala was Deputy Director of the Assembly Speaker’s Office of Member Services where he worked for over 30 years.
He attended undergraduate and graduate school in the 1960’s and received a doctorate in political science at UC Berkeley. He taught political science at UC Berkeley during the 1970's while he worked part-time for the State Assembly.
Cavala left teaching at UC Berkeley and went to work for Assembly Speaker Willie Brown in 1981 until his tenure as Speaker ended in 1995, and he has worked for his five successors as Speaker up to and including Speaker Fabian Nunez.
Mr. Cavala manages election campaigns for Democratic candidates.
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