Spending limits key to California budget reform
June 26, 2008
Dan Weintraub of the Sacramento Bee wrote Wednesday that the GOP proposal for spending limits will be an important part of any forthcoming California budget deal. The spinning mandala of California budget reform centers on Republicans that want strict [spending] limits based on population growth and inflation that would shrink the size of government over time. Democrats say, “heck no.” Dems want no constraints on potential revenue enhancements—i.e. borrowing from potential lottery revenue, increased taxes on top earners, and reinstatement of vehicle fees—and say the state’s problem is not reckless spending but a chronic shortage of tax revenue.
Unfortunately neither Republicans or Democrats have articulated any public-justice view for the role of State Government. Democrats have no limits so state and government becomes everything and spin out of control. Republicans, meanwhile, tend to reduce the scope of government to protection of property and contracts with no regard for the rights of other social structures in civil society.
Worst of all, both left and right have a hard time keeping government as political community distinct from faith community, whether articulated as some anachronistic socialist worldview or self-righteous American civil religion.
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4 Responses to “Spending limits key to California budget reform”
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The State of California might want to imitate what Israel is doing. Israel limits increases in government spending to 1.7% per year.
If California took 10% to 20% of its annual budget and invested it — perhaps with someone like Warren Buffet — then the state might have some extra funds when the economy is performing badly.
Richard Colman
Orinda
My feeling on our State Government relative to budget issues is that I truly wish that they would get something done. It has become almost impossible to make even short range plans for the school district because Sacramento can’t seem to figure out how to put together a budget that remains unchanged for more than several months at a time. As a school district, we are required by State law to notify our certificated staff ( teachers) if they will not have a position next school year by March 15th of the previous school year. So we have to make staffing decisions by March 15th and we do not know what our budget will be for the next year until June 30th ( that would be if Sacramento were to pass a budget on time which they don’t do). We probably will not have a budget until the start of the 2008-2009 school year in August, after we have already committed to staffing. I think there needs to be some common sense in Sacramento, but I don’t see how we are going to achieve that given the current political system. We really do need a change and I have not seen any evidence that one will occur.
I agree with Gary that there are many aspects of the budget that make planning ahead, especially for education, very difficult. There are many policies in place regarding education and the budget that could be changed to make the budget run more smoothly. The California Budget Challenge shows these policies in work…it’s a nonpartisan tool that allows you to go through the steps of creating your own version of the state budget. It’s really interesting to see how it all works. You should try it. You can even send an email to your legislators about your feelings on the policy choices you make. http://www.next10.org/challenge
Thanks for the budget tool Sophia. It was a very interesting simulation. Although I know that balancing the State budget is not as easy as the simulation makes it, it does highlight the fact that it is necessary for the State to balance their budget each and every year and that the work of balancing the budget needs to be completed on time. Our State needs to make investments in areas that will pay dividends and cut in areas that perpetuate dependency. Frankly, our State Legislators and our Governor are completely irresponsible in their spending and taxing policies and in their inability to compromise and balance the budget. The last several years of balancing the budget by borrowing is an abomination that is not sustainable. If a person wants to see how inefficient our Government is all you have to do is sit in a court room for a day and watch as petty criminals are paraded through the system or sit at DMV or the Social Security office. Things will never change until efficiency is mandated and until voters are fed up with the ineptness of our politicians.