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Time Running Out on Prospects for State to Avoid Catastrophe
By Assemblymember Noreen Evans (D-Santa Rosa),
Chair of the Budget Conference Committee
(Originally posted on Evans’ budget blog at http://californiabudget.blogspot.com/
Over the last three days, the Legislature has been voting on elements of a budget revision package. The Assembly has taken up four bills totaling nearly $12.4 billion in cuts and savings towards our $19.5 billion deficit. Today, the Senate attempted to go even further toward closing the deficit, voting on other components of the budget package but obtaining no Republican support.
With just a little over 100 hours until the state plunges into financial ruin, I wonder when at least the bare minimum of Republicans will come out of their corners and do the business of governing that this state so desperately needs. We only need 4 Republicans in the Assembly and 2 in the Senate to pass these budget revisions, and, of course, 1 governor to sign it.
I am encouraged by the Assembly Republican leadership’s interest in working over the weekend to find common ground and reach an agreement. I was proud of our bipartisan approach taken yesterday when we passed three bills enabling the State Controller to pay the state’s bills this summer. These bills were not passed with a bare minimum of support, but in a nearly unanimous bipartisan effort. Nevertheless, the governor and Senate Republicans quashed yesterday’s fledgling bipartisan effort.
But here’s the real rub. Neither the governor nor Senate Republicans are offering solutions toward an agreement.
As the old saying goes, it’s deja vu all over again. The governor makes threats on an almost daily basis. Today’s threat is a third furlough day each month for state workers if we don’t send him a $24 billion budget solution all at once.
And, Senate Republicans are in tow. They apparently voted down the budget bills over the past three days because they were not solving the entire budget deficit all in one day. They also say that they want up to another $8 billion in cuts to reach any budget agreement but refuse to say where and how such cuts should be made. Recognizing their refusal to cut public safety or prisons, cuts of this scale can only come from education and eliminating the health and human services safety net.
The bottom line remains the same: we need to pass a budget package within a matter of hours. That means the governor and Senate Republicans must rise to the occasion and work with Democrats and Assembly Republicans to guide our state through this financial crisis. This is not a game. This is not a drill. The cost of their bravado is the financial ruin of California.
Assemblymember Noreen Evans represents the 7th State Assembly District, which includes all of Napa County and portions of Solano and Sonoma Counties. Evans serves as Chair of the Assembly Budget Committee. She just launched a new blog, Evans Budget Blog at http://californiabudget.blogspot.com/.
Comments
"I wonder when at least the bare minimum of Republicans will come out of their corners and do the business of governing that this state so desperately needs."
Republicans wonder the same thing with Democrats all the time. The funds aren't available. When will Democrats stop pushing pretend budgets? When will they stop talking 'priorities,' and start talking realities? When will the posturing cease? When will they get down to business?
Posted by: Guy Montag Doe at June 28, 2009 10:36 AM
There are priorities, you can stop talking priorities when they don't exist. The realities are the funds do exist. Within the government and where they want the money to go, to supplement themselves and wasted programs. But the elderly and disabled should be treated as human beings.
Posted by: Dawn at June 28, 2009 11:22 AM
California's budget problems may get worse. Much worse.
The burden of California's social welfare programs, substantial even forty years ago, has been compounded by California's importation of poverty as a result of romantic but suicidal liberal beliefs, corporate greed, and public apathy. See http://www.nccp.org/profiles/CA_profile_6.html, connect the dots, and do the math. 2,237,962 California children in imported low income families.
The ability to carry the burden will diminish as over-taxed Californian's move to other states.
The Nation follows as California leads.
Posted by: ErikKengaard at June 28, 2009 11:42 AM
As a member of general public in the state of California, i don't see why i would care if what you "catastrophe" happens. I do not work for the state, i am not state contractor, i do not work for the company that has anything to do with the state, so basically i don't care what happens. Having no budget will have No impact on me as such as long my taxes are kep low that is all I care. With that being said, what reason do Republican have to pass this budget without getting what they want in the budget?
Posted by: rep at June 28, 2009 01:14 PM
When the GOP does get a seat at the budget table, their demands are predictable. Yacht tax exemptions, tax breaks for Hollywood, and more tax breaks for their supporters. Given the opportunity to use their undemocratic leverage thanks to the 2/3rds requirement, they choose to pander to their financiers instead of solve the state's problems. This year is no different. It's the tyranny of the minority.
Posted by: Patrick at June 28, 2009 01:51 PM
When the GOP does get a seat at the budget table, their demands are predictable. Yacht tax exemptions, tax breaks for Hollywood, and more tax breaks for their supporters. Given the opportunity to use their undemocratic leverage thanks to the 2/3rds requirement, they choose to pander to their financiers instead of solve the state's problems. This year is no different. It's the tyranny of the minority.
Posted by: Patrick at June 28, 2009 01:54 PM
Rep: "i don't see why i would care if what you "catastrophe" happens."
Part of me hopes you learn, the other part of me doesn't want innocent people to suffer from your stupidity.
Posted by: Doug at June 28, 2009 02:01 PM
Is there some aspect of class warfare to this back and forth? Ant and the grasshopper? Those who have want to keep what they have; those who don't have want to take from those that do?
Time was when those who had were willing to share with those who didn't, for a variety of reasons. Times have changed.
Politicians lacking even the least bit of integrity (that would be most politicians) have sold out to the highest bidder, or pandered to ignorant masses to remain in office, nearly destroying the middle class, and bringing the country to the brink of ruin.
Whose interests does Diane Feinstein serve with her pursuit of slave labor via her AgJobs bill?
Whose interests does Barbara Boxer serve?
But the people sleep on.
Posted by: Erik Kengaard at June 28, 2009 06:05 PM
It's one thing to ask for more taxes when times are good, real estate values are soaring, sales are sky-high, and individual and corporate income is up. Right now isn't that time.
Right now property values are falling and in most of the valley it's foreclosure city. Unemployment is high and even the employed have considerably less income - reflected in low sales and low income tax witholding. Even the corporations - the declining number of those who haven't already left the state due to the piss-poor business climate - have decreased revenues. Now is not the time to pile on to the hurting taxpayer with more taxes.
Now is not the time either to compromise with democrats who make a career out of 'what's mine is mine, what's yours is negotiable.'
It's time for cuts - real cuts. No gimmicks - no kicking the can down the road. The state should act just like every taxpayer out there. You are going to have to do with less - not 'a balanced mix of reductions and new taxes,' but simply with less.
If you want to 'compromise' on THAT, this can all be over tomorrow. If you don't - well, it'll all be over three days from tomorrow, I guess.
Posted by: George Hanshaw at June 28, 2009 08:51 PM
Just closing an italics tag.
Posted by: the html wizard at June 28, 2009 09:50 PM
Money to help the poor and needy should go directly to the poor and needy, not to wealthy contractors, teachers and state workers. To this end it is a moral disgrace that Democrats are willing to throw children off of welfare and health insurance while protecting state workers. The solution to this budget mess is massive layoffs of state workers, pay and benefit cuts for those who remain.
Posted by: IMBILLY at June 29, 2009 04:02 AM
Money to help the poor and needy should go directly to the poor and needy, not to wealthy contractors, teachers and state workers. To this end it is a moral disgrace that Democrats are willing to throw children off of welfare and health insurance while protecting state workers. The solution to this budget mess is massive layoffs of state workers, pay and benefit cuts for those who remain.
Posted by: IMBILLY at June 29, 2009 04:03 AM
Major California counties are ground zero in the continuing mortgage meltdown:
Los Angeles County with 5.32 percent of mortgages 90 days past due … Monterrey County, 8.02 percent … Imperial, 8.13 … San Bernadino, 8.66 … Madeira, 9.21 … San Joaquin, 9.53 … Riverside, 10.2 … Merced, 10.57 … and more!
California’s inventory of foreclosed homes is skyrocketing. Home prices are plunging. And the impact of surging unemployment is just beginning to show up in the data …
The state’s unemployment rate has surged to 11.5 percent, the worst since World War II.
California Unemployment Rate
Last month, California lost 68,900 jobs. And since July 2007, it has lost 859,000 jobs, including 739,500 just in the past 12 months.
Even if the economy recovers, economists agree that California will continue to be slammed by layoffs, at least through the end of this year and probably well into 2010.
And even assuming a national recovery, UCLA’s Anderson Forecast projects an average unemployment rate of 12.1 percent from this fall through next spring.
What about without a national recovery? California’s jobless could go beyond 15 percent.
Worse, if you include part-time workers seeking full-time work plus workers who have given up looking entirely, it could reach 25 percent, exceeding the worst national unemployment levels of the Great Depression.
Now for the question - why is it much worse in California than anywhere else? The answer is simple.
California has for decades labored under the illusion that they could have prosperity while punishing the engines that provide that prosperity. They have driven the employers out and now wonder where the jobs are. They have driven the rich out, and now wonder why income tax revenues are falling.
California today is the story of the goose that laid the golden eggs - writ large.
Posted by: George Hanshaw at June 29, 2009 12:16 PM
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