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Cavala: What Will California’s Budget Deadlock Bring?

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At every point where there is a severe shortfall between needed revenues and something close to current revenues, a budget deadlock ensues with the following characteristics.

Democratic legislators and their interest group allies seek to pressure Republican lawmakers into providing the votes necessary for more taxes. This is a difficult task given that Republicans define themselves as a party as the “no tax” group. To overcome this fact, interest groups spend significant money trying to effect public opinion so that it will, in turn, effect Republican attitudes.

So efforts are made to mobilize the constituencies supportive of state spending in Republican seats. Teachers in Republican districts;. Consumers of IHSS; Local public safety organizations, and so on. These district elites, once mobilized, should constitute a counter pressure to the ideological anti-tax group, ultimately making it easier to raise taxes than to cut spending further.

These district efforts to organize and mobilize take time – hence the relative inactivity in Sacramento. Democrats stall until the pressure builds.

Republicans, too, favor delay. The Democratic National Convention takes place in July, and many Democratic lawmakers would like to attend. By stalling until then, Republicans can put pressure on the new Democratic leaders to compromise further so their people can be present at the Obama coronation. Somewhat later, the state’s cash flow problems will instigate a spate of bad press stories as we are forced to rely on high priced Revenue Anticipation Warrants – bad press that will focus on leadership failures.

The difficulty with both strategies is that neither is likely to succeed.

Republican lawmakers that break ranks to support tax increases – maybe to get goodies for their districts – know that they will face the fate of the five Republicans enticed into that situation by Speaker Hertzberg. All of them were wiped out in subsequent efforts to prolong their political careers. ALL of them. Holding up the budget has never proved to be a Republican negative: witness Jeff Denham.

But Democratic lawmakers are equally unlikely to break with time. The interest groups they would have to sell out aren’t just ‘contributors’, they define the very reason for public office for a majority of the Democrats. In a recent primary election just outside of Sacramento the police, firefighters, teachers and public sector unions all rolled the store on behalf of a liberal woman who defeated a more pragmatic mayor. The cuts the GOP are demanding are so unthinkable to her as to be beyond the pale.

Plan “B” of the Republicans might be to agree to a budget that anticipates new taxes and to provide the votes necessary to let voters decide the issue this Fall – voters will have to approve the Governor’s lottery gimmick at the same time. But the price the GOP would demand for “plan B” would be the rollback of environmental deadlines and as much of the Chamber of Commerce platform as they could coerce out of the majority.

Meanwhile, our Governor will continue to issue sound bites designed to make him look good and not to address the problem. Republican lawmakers believe he lacks principle. Democratic lawmakers know he’ll go along with anything that makes him look good (like an end to impasse) – but that he’s clueless as to how to make that happen. We should all recall that he sent his Director of Finance to Senator Denham’s district during last years budget to castigate him for obstruction – only to oppose the recall election of Denham based on that obstruction.

The Governor is clearly afraid to confront Members of his own party – and clearly has no friends among Members of his own party. In ‘big 5’ meetings, he’ll supply the room and the coffee, not much more.

Adding to this fun picture is the fact that the Republicans and the Democrat in seats that are marginal by party registration are all ‘termed out’ this year – which means that budget delays, compromises, cuts, taxes that might have been held against them this Fall can’t be held against them. Concern about budget fallout for Shirley Horton, Bonnie Garcia or Guy Houston (among the GOP) or upon Nicole Parra (among the Democrats) will be absent. I’ve never thought this amounted to much, but advocates of changes in redistricting procedures see it as the invisible hand that moderates extremists who must compromise to protect those in electoral danger. Well, this year, no danger.

In the end, would the failure of the Legislature to pass a budget really matter? While required by the Constitution, no one goes to jail or loses office for failing their duty. Voters – who oppose both the spending cuts and the tax increases necessary to restore sanity to the budget – will presumably be pleased with the absence of a document that requires neither. The Courts have eliminated many of the consequences of not having a budget – and could probably be counted on to allow continued spending mandated by law, budget or no. Columnists and editorial writers will rant, but they do anyway – without effect.

We would be spending more money than we had – illegal deficit spending – but we’ve done that for years without consequence. All of California’s spending on our Correctional Institutions is perilously close to being run completely by a guy hired by a Federal Judge. Maybe that’s the model for future governance?

By Bill Cavala
A veteran of over 30 years in Sacramento

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.

Posted on June 17, 2008

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