Digital News Report – As lawmakers negotiate this year’s state budget to close a nearly $20 billion deficit, I’m reminded of the quote made famous by New York Yankees great Yogi Berra: “It’s like déjà vu, all over again.”
Instead of working toward an agreement that will bring California’s spending in line with revenues and spur private sector job creation, the majority party is back again with its usual mix of taxes, borrowing and outright denial of reality.
In the Senate, Democrats wasted no time pushing almost $5 billion in new taxes including another hike in the car tax and extensions of last year’s “temporary” tax increases. It doesn’t seem to bother them at all that these tax increases would force struggling California families to pay hundreds of dollars more in taxes each year.
Assembly Democrats have concocted an elaborate and most likely illegal scheme that involves borrowing billions from Wall Street against the state’s bottle deposits and taxing domestic oil production. Their “head-in-the-sand” approach does nothing to solve our chronic budget problems, but would instead leave a monstrous $16 billion hole in the following year’s budget.
Neither plan would retain and create the private sector jobs needed to truly solve California’s chronic budget problems. Neither plan would help small businesses by lifting the unneeded restrictions and regulations that make California the most expensive place in the nation to do business. California’s unemployment rate is the third highest in the nation as a result of private sector job losses, but all the Democrats seem to care about is protecting the programs and perks of government bureaucrats.
If you’re wondering how they intend to pull any of this off, well, they don’t really. Their delays in finding real solutions has already made the budget deficit $2.8 billion worse than it would have been had they pulled the trigger on targeted spending cuts earlier this year.
In fact, it’s clear that the Democrats are dragging out the budget drama as long as they can. As in years past, I wouldn’t be surprised if they try to blame Republicans for the delay.
Their hope is to generate public support for a majority-vote budget, something the voters of California have made clear they don’t support.
Democrat Assemblyman Alberto Torrico said as much recently when he claimed his party was too quick to negotiate a budget, and that Democrats should let the state get to an even more dire fiscal condition if Republicans refuse to raise taxes.
This tactic by Democrats is nothing new. In 2003, 11 Assembly Democrats were embarrassed to be caught on an open microphone musing on the benefits of prolonging that year’s budget stalemate, namely, to improve the odds of passing a ballot initiative to lower the threshold for passage of a budget out of the legislature from two-thirds to 55percent. More recently, in 2007, the Democratic Party funded a recall effort against Republican Sen. Jeff Denham based entirely on his refusal to vote with Democrats to raise taxes.
And during a recent hearing in the Joint Budget Conference Committee, one member openly discussed the fact that unless they first reduced funding for state parks, it would be difficult to convince voters to pass a ballot initiative that would raise driver’s license fees to fund them.
What it really all comes down to, from the convoluted tax schemes to the cynical political strategizing, is a fundamental refusal to deal with reality. Whether it’s the amount of revenue coming into state coffers, or the number of Democrats versus Republicans serving in the Legislature, Democrats want to focus on the numbers they want, rather than the numbers they have.
Instead of devising new taxes like they did last year when they imposed the largest tax increase in California’s history, or proposing illegal borrowing schemes, it’s time Democrats stop playing “déjà vu” and start negotiating a responsible budget that permanently brings spending in line with revenues without raising taxes.
By Sen. Bob Dutton