California Budget Crisis

The California budget problem probably gets no play outside of California, not that it should, but please allow me to vent. The state’s budget was due in July 2008 and has still not been turned in! The problem? The state is said to be between $34B and $42B in the hole and the proposed budget remains well in excess of the expected tax revenue. Our legislature cannot agree on new or increased taxes or budget cuts to make up the difference.

I’ll try to avoid getting too party biased, but heck, in a mess like this there’s enough blame to go around for everyone, and it’s been going around for about a decade now. Suffice it to say that I’m in favor of the Laffer Curve getting consideration in any tax talk. [‘the Laffer curve is used to illustrate the idea that increases in the rate of taxation do not necessarily increase tax revenue.’ Thank you, Wikipedia, (http://en.wikipedia.org/wiki/Laffer_Curve).]

Two things that have already been discussed as the state’s money runs out:

• One week furloughs for some state employees. Time away from work with no pay sounds like a good start. Besides, it beats lay offs.
• State parks and DMVs may be closed one day a week.
  

An outline of my proposed fix for the budget woes:

(1) An expense freeze. No new expenditures and no increase in any line over the prior year’s expense. This freeze continues until tax revenue, some year way out in the future, finally catches up with expenses. This includes overriding built-in automatic increases already assigned to some expenditures.

(2) Sunset dates. Why do sunset dates only apply to tax cuts? These should also apply to every new program, expenditure, and tax increase that is implemented. Enough of these perpetual expenses and programs that begin and then never conclude.

(3) No more automatic / built-in expense increases over the prior year. Make every program and expense susceptible to justification. You want more money dedicated to something than was spent last year? Show the results that justify the request.

(4) Wish list item: A furlough for the entire state legislature for the balance of Q1 and Q2 of 2009. Save a ton on salaries, staff, catered meetings, lodging when out of town, and their transportation. Plus, they may return on 7/1/2009 inspired to get the next budget in on time. Or turned in at all.

(5) In real life, these plans would not go far enough because of the gap between expenses and tax revenue. How about every state representative pick one program or budget line to make eligible for cut. Governor Schwarzenegger can then draw straws, roll dice, or throw darts to decide on 25 of them that are to be cut 10% or eliminated. Why dice, straws, or darts, you ask? Because discussion and arguing for the last six months has not yielded a legitimately decided answer. Let chance decide.


I’m just feeling a little fed up. Like someone should be taking away their crayons, assign a hall monitor that’s not afraid to send someone to detention, and actually make a leadership decision. And no, the decision to stand and state loudly that it’s the other guy’s fault is not the decision we’re looking for.

Sure this is from a naive perspective. But I am thoroughly disgusted by the work, or lack thereof, produced by our elected officials. Thanks for hearing me out.
-klem