Proposition 1A is the last of the six initiatives that Californians will vote on next Tuesday. The title of this initiative states, “STATE BUDGET. CHANGES CALIFORNIA BUDGET PROCESS. LIMITS STATE SPENDING. INCREASES “RAINY DAY” BUDGET STABILIZATION FUND.” If only it were really true.
Let’s note that there’s some slight truths in the title. The budget process will change…cosmetically. The “Rainy Day” fund will increase…but given that it’s been raided time after time by the legislature and nothing in the new legislation will stop that, I consider the change worthless to California’s taxpayers.
Now, what you may not be able to easily figure out from the title. The tax increases approved by the legislature in February will be extended for two additional years if this measure is approved.
The Legislative Analyst calls the impact of the measure “…particularly difficult to assess.” Well, I’ll give it a go. I believe that if the measure is passed California will see additional tax increases. The measure does nothing to stop further revenue increases…those are called tax increases by us.
What California really needs is to cut spending to a level commensurate with revenues. Indeed, I read a recent commentary on what the state should do:
– Determine the amount of revenue California will take in;
– Match the budget to the prior California budget that was used; and
– Change the laws so that it’s legal.
In the commentary I linked to, Ray Haynes thinks that California will take in $74 billion, and that’s about the 2002-03 budget amount. So just re-adopt that budget for 2009-2010. The unions will go nuts; the liberal media will go nuts; the special interests will hate it.
But it would work. And, as Mr. Haynes notes, it would be understood by Californians.
Do I think that will happen? No. But next Tuesday Californians are poised to throw cold water on the tax and spend ideology of the legislature.