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Republican Feud Belies The Reality of the Severity of the Current Economic Crisis

David M Greenwald.jpgby David M. Greenwald

The news came out yesterday that the Senate Republican Leader Dave Cogdill declared that legislative negations with Governor Arnold Schwarzenegger were essentially dead.

The suggestion was made by Mr. Cogdill that Republicans would prefer to work out a deal with legislative Democrats.

The Governor does not appear to disagree with Republican demands such as the ones that Assembly Republican leader Mike Villines released on Tuesday.

The Governor does appear to differ on the approach that GOP legislative leaders are taking.

The Sacramento Bee quotes the governor saying:

"I have been to many meetings; none of those things were discussed. So I think it's very hard for the Democrats, in a way, to negotiate when no one puts that on the table and says here is the list of things that we ask for and if we have this list then we're willing to increase taxes and to come up with extra revenues. But it's always very vague and nothing specific and I think that makes it sometimes frustrating in those negotiations."

Moreover:

"But I'm happy that the Republicans have a list now. But again, as you have just said, you can't go with a list like this and say if you commit to those things and if you're willing to make those changes, then we are willing to talk about revenue increases. That is not the way you negotiate. You have to say this is what it takes and then I'm ready to increase the revenues and I will get my people upstairs to vote for a revenue increase.

So that has been a holdup. I have felt many times that Republicans did not come prepared and Republicans have not been specific of what they need. They have been very vague."

Senate Republican leader Cogdill took exception to the Governor's words:

"Bullying the legislature to adopt tax hikes won't make the ticking clock the governor unveiled today go away. In fact it will only make our budget problems worse. Raising taxes doesn't solve the underlying problem of California's budget, which is the state spends more than it takes in."

Villines did as well:

"But let's be clear - Republicans have always entered budget negotiations with Democrats and the Governor fully prepared and fully engaged. For more than a year, we have offered countless proposals both publicly and privately - including specific budget reforms to help us live within our means, specific economic reforms to promote job creation and specific government reforms to ensure our tax dollars are spent more efficiently."

As Brian Leubitz of Calitics wrote yesterday:

"In actuality the problem here isn't that Arnold is being too tough now, it's that he's not being tough enough. We need the Governor to play hardball with these Republicans. The real problem is that he already missed his chance to really break the logjam a few months ago."

For my money, I agree with Speaker Bass's comment from Monday's press conference:

“I think that some of my colleagues on both sides of the aisle are in denial, frankly. And feel that this problem is not as big as $11 billion right now or $28 billion over the next few months, or feel that we can solve this through cuts alone or that we can solve this through revenue alone. The goal of today is to make sure that there is no excuse for the denial of moving forward. I'm saying that on both sides of the aisle, in both houses, and I'm also saying that for the new members especially who come here with wonderful ideals that they need to hear the reality. For returning members, they need to know how much more serious this crisis has gotten.”

It is plainly obvious to me that we need both tax increases and spending cuts. Both will be painful in their own way. But I have a different perspective as well, I cover local politics and this week, three of the local bodies that I cover most regularly--school district, city, and county--are all facing huge and mounting deficits which means a cutback in vital services that the county provides, a cutback to city staff and city services, and probably the loss of teachers and educational programs.

As we all know cities, counties, and schools were not in such great shape financially to begin with. So forgive me if I get a little tired of these territorial contests between the Governor and his supposed GOP allies, it is time to do as Speaker Bass suggests and get serious.

As Speaker Bass said yesterday, everyone has to give on something they want to stave off something far worse:

"They said that they came up here because of what they believed in and they believed that there should never be a tax increase. All of us came up here for what we believed in. I came up here to make sure that I would protect programs that now I have to recognize have to be cut. We all have to do things that we never thought we would do because California is in a catastrophic situation."

I just wonder how long it will be before the Republicans figure this out.

Posted on December 12, 2008

Comments

What the left continues to miss is that the Governor no longer has any influence within the GOP. The Governor is the most impotent member of state government, he has no base left with which to call upon to sway anyone. Arnold couldn't get a Republican endorsement for the proverbial Dog Catcher election. The only thing he can do is hold press conferences and call names and that is not going to change a Republican's mind. The sooner the left realizes that the Governor is more of a liability in these negotiations then an asset the sooner they cut a deal.

Posted by: sean at December 12, 2008 09:20 AM

this is rediculous. california already has the highest taxes in the country and now we have to pay more? can't see where raising taxes will help at all. I think we should have to live with in our means and raiseing my taxes makes it harder to live period.

Posted by: John at December 12, 2008 12:19 PM

this is rediculous. california already has the highest taxes in the country and now we have to pay more? can't see where raising taxes will help at all. I think we should have to live with in our means and raiseing my taxes makes it harder to live period.

Posted by: John at December 12, 2008 12:20 PM

John, incorrect. California actually ranks down at #20 for its tax rate, we're very middle of the road as far as taxes go.

It's a popular myth, sure... but California's taxes simply aren't that high. :)

Posted by: Elias at December 13, 2008 03:07 AM

Just WHAT are the democratic budget cut suggestions? Lets see the list, not "pretend" that there is one and take "credit" for that...

Posted by: Jay Gould at December 14, 2008 09:31 AM

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