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Governor Flopping All Over the Place on Budget
by David M. Greenwald
Editor
California Progress Report
The Sacramento Bee reported yesterday that the Democrats thought they had a deal on the budget. Senate President Pro Tem Darrell Steinberg dropped by the Sacramento Bee and told the them that the Governor became convinced suddenly that he could gain Republican support for his plan which called for tax hikes but also deep cuts to things such as education.
The Bee reports:
“The Democratic Senate leader said he and Assembly Speaker Karen Bass came just shy of closing a budget deal Sunday that would have reduced the state's estimated $40 billion deficit by $17 billion over the next 17-plus months. But Steinberg said in subsequent talks the governor spurned their offer with an eye toward reaching a bipartisan agreement with support from anti-tax Republicans instead of working on a deal backed only by Democrats.”
The Senate Leader told the Bee:
"He believes that he can convince the Republicans to vote for revenue increases given that we're now pretty much at the brink. And if that's the case, great. Then we'll resume a different kind of negotiation. If it's not true, then I expect we'll be right back to our $17 billion-plus proposal and try to close that out."
Senator Steinberg believes that as long as something is passed by February, lawmakers can avoid a cash shortage that would trigger the issuing of IOUs.
What seems clear at this point is that Democrats seem fairly willing to find a way to make the deal work. They looked for a way beyond the two-thirds vote requirement and were willing to broker a deal with the governor. However, from what the Senate leader said yesterday, it is clear that if the Republican legislators are willing to get involved, they will work with them as well.
There does not appear to be nearly that commitment on the part of Republican Legislators or the Governor.
The Governor wants to broker his own deal on his own terms.
Senate Majority Leader Albert Torrico said in a press release yesterday:
“With California on the brink of a fiscal collapse and in need of some decisive leadership, the Governor seems paralyzed by indecision. A great action hero he is not.“
That is the key to understanding the Governor’s actions—he wants to be the person of action.
Majority Leader Torrico continued:
“The Governor wants the public to see him as the only realist in the center between two extremes, but that vision is a mirage. Democrats have gone more than half way to reach an agreement on public-private partnerships, environmental streamlining, significant cuts to vital state services, tax incentives on film production and other items brought up during the recent negotiations with the Governor.
“Now is the time for more leadership and fewer press conferences. Now is the time to strike a deal.”
However, the Governor instead continues to change the rules of the game midstream. His latest approach is the “four-legged stool.”
He proposed yesterday a reduction of spending by $16.5 billion—most of the cuts coming in education programs, prisons, and services to the elderly, poor and disabled. Heavy cuts to people who can least afford cuts and also education.
He is willing to increase revenue by $14.8 billion mainly through a 1.5 cent sales tak hike for three years, but also by borrowing $10.3 billion.
He believes that relaxing environmental regulations like CEQA will create jobs and accelerate public works projects.
Finally he wants to lay off state workers—eliminating or consolidating “redundant” or “unnecessary programs.”
Adding to the frustration is the fact that the goal posts are consistently being moved by the Governor. The Governor repeatedly has issued statements and then scurries off to have press conferences, rather than citing down with the major leaders, figuring out what they can agree to, and hashing out an agreement.
The Governor has shown little in the way of ability to negotiate a deal. He has shown little ability to bring his fellow Republicans aboard on the tax increase. He has repeatedly insisted on cutting environmental regulation—mind you this is a Governor who ran on being an environmentalist—and is making the questionable claim that what is standing in the way of the economy are CEQA and other environmental protection regulations.
As the Majority Leader said, it is time to show more leadership and have fewer press conferences. The only side that has shown itself willing to compromise to make things work are the Democrats. Time for the Governor and legislative Republicans (if they want to play in this game) to step forward.
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