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Reacting to Brown's Budget

by: Robert Cruickshank

Tue Jan 11, 2011 at 07:00:00 AM PST


Governor Jerry Brown released his budget plan yesterday. It's no surprise that Brown is mixing cuts and revenues, but the overall thing has an air of disappointment to it, particularly the fact that he proposes to extend the February 2009 taxes and not seek more fundamental reforms, such as restoring the Wilson-era upper income tax brackets or seeking an oil severance tax.

Brown also is proposing some ugly cuts, and is suggesting these may be permanent. The social services cuts resemble those that Arnold Schwarzenegger frequently proposed, although Brown is thankfully not suggesting anything like eliminating CalWORKS, as Arnold did. The proposed cuts drew concern from Jean Ross, executive director of the California Budget Project:

However, the Governor also proposes deep cuts that will weaken the public structures that many Californians rely on, including CalWORKs, the state's highly successful welfare-to-work program; state- assisted child care for families struggling to make ends meet; Medi-Cal, a state-federal health insurance program; and the Healthy Families Program, which helps families purchase affordable health coverage for their children.

Protecting our core public systems and structures is essential for securing a prosperous future and paving the way for an economic recovery. Lawmakers and voters should examine the Governor's proposals in the context of what they mean not just for the next 12 months, but also five, 10, and 20 years in the future.

Ross did praise Brown for adopting a "balanced" approach to the budget, seeing new revenues as a core element of the solution instead of as a small and grudging concession, as did Arnold Schwarzenegger, fueled as he was by an ideologically anti-tax attitude. But the proposed cuts will have lasting negative consequences that will be devastating to the safety net, and therefore, to the ability to produce lasting and sustainable economic recovery.

It's regrettable, but not surprising, that Brown still sees value in austerity, even if it's to be balanced out by some new revenues. The Brown Administration projects a possible $3 billion surplus by 2013-14 if the revenue increases are approved, and while that might be a pathway to restoring some of the cuts, he's much more likely to want to hoard it (which would be as stupid an idea as it was in the late '70s) or to use it to pay down debt.

The shift of money and responsibility to counties will be very, very interesting and has to be watched closely to ensure this doesn't become a license to red counties to misuse the money and screw people who need services. And the fight over the redevelopment agencies will be a massive battle, as they have well-funded allies who won't go down quietly.

Still, it seems worth mounting a fight for the new revenues anyway, especially if they are presented to voters in a "clean" form, not weighed down by right-wing trojan horses as was Prop 1A in May 2009.

Governor Brown's political instincts have never been radical. He has always believed in taking the electorate as it was (or at least as he thought it was), instead of trying to move voters toward a new political understanding. In that way he shares a lot with President Obama, who also counsels Democrats to accept a supposed reality of a center-right electorate and to be content with incremental gains.

There's no doubt that much in Brown's budget has the potential to dramatically reshape California government, and to help provide some stability to public services. At the same time, Brown has again shown his cautious and conservative (in the sense of being unwilling to rock the boat) instincts with this budget. In the end, I have to agree with those who have called Brown's budget a missed opportunity. It's better than what we'd have gotten with Meg Whitman, of course, but it shows progressives that they still have work to do in order to reshape the discussion of programs and revenues in Sacramento, even as we work to get voter approval for the spring initiatives.

Robert Cruickshank :: Reacting to Brown's Budget
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Opportunity (3.50 / 2)
  While the taxes are not in the form any progressive would like, they have the big advantage of being a continuation of current policy rather than a change.  Just like eliminating the Bush tax cuts is claimed by the Reps to be a tax "increase" (putting those Reps in 2001 and 2004 in the position of voting for the largest tax increase of all time), Dems can claim that continuing the taxes is not a tax increase (since they are already being collected).

 Now, as regards to the spring special, it isn't clear the Reps will agree (or they will add so many conditions, just like in 2009, that it will be a Pyrrhic victory at best).  
I realize that there is talk of using a majority rule way around putting an initiative on the ballot, but I don't know
if it will hold up.
There is another way.  Let labor/education pay for an initiative which would qualify by the ballot by July, so
that Brown could call a special for September/October.  Then there would be passed a complete cuts budget in June of 2010.
No money for water, none for local cops, prisons being emptied of half their inmates, UC's being shuttered, schools on 160 as opposed to 180 days.  Then people can see the consequences and they will, I suspect, vote accordingly.

 The advantage of this is the taxes can then only hit corporations and the top 1%.  Oil severance.  Raises in top income taxes.  Split roll (or effective split roll--reassessing when majority of shares change hands, rather than the corporate entity).  Repeal of various business tax breaks.

 Incidentally, even if we get something on the ballot in the spring, we should be qualifying some of these things for the 2012 fall ballot, when democratic turnout is at its top.  The key is to tie the revenues (which should always be from corporations/top 1%) to something people want to support (education, health care).  California is becoming more progressive every day and we have to keep these issues alive.  Then, once something is passed, we need to keep explaining where the money is going.  That's why devolution from Sacramento (assuming it doesn't disadvantage poor people) is a good thing--it puts issues locally.


2/3rds (0.00 / 0)
I have also heard that there is a way around the 2/3rds requirement to get these taxes on the ballot for June
USE IT
The republicans will try to draw things out and they won't agree to the initiatives
Use the work around and skroo the Recuplicans

[ Parent ]
It's Arnold 2.o (4.00 / 1)
I just read over at Capitol Report that the budget is basically Arnold's and is rife with uncertainty.

"Two rate reduction proposals by Schwarzenegger were blocked by the federal Ninth Circuit Court of Appeals. The U.S. Supreme Court is weighing whether to take the case.

Brown's budget is based on the premise the court will take the case and California will prevail. "

Brown's also cutting the disabled poor/elderly payments to the basement. As well as an even bigger reallocation of the first five money. Imagine the rhetoric here if Meg had won and proposed those two things.

They also note that the Medi-Cal forced reduction may not be legal, but I don't get that. Maybe someone with better vision over that (i.e. anyone!) could help...

Finally, I think we're looking at an even worse scenario to get to 2/3rds. Public Unions are going to take a hit, that's inevitable.


Sure Brown (4.00 / 1)
Does want to cut the SSP portion of peoples checks(Mine too), It would be a fair trade if the Cash Out Policy here in California were ended as then those people here in California could then get USDA Food Stamps which are currently embargoed by the USDA/SSA cause of Cash Out.

State's food stamp cash-out policy no longer the best option for many aid recipients

Ending California's "Cash-Out" Policy

Issue: In 1974, California opted to "cash-out" recipients of Supplemental Security Income (SSI) benefits from the Supplemental Nutrition Assistance Program (SNAP, formerly the Food Stamp Program). In lieu of SNAP eligibility for low-income seniors and people with disabilities receiving SSI, the state increased the State Supplementary Payments (SSP) by $10. A report from Mathematica Policy Research evaluates how eliminating "SSI cash-out" would affect Supplemental Nutrition Assistance Program (SNAP) eligibility and benefits for Californians receiving SSI and for non-elderly non-disabled family members living with them.

Oh and I emailed Governor Brown on this issue, Maybe others could too at the Office of Governor Jerry Brown.


[ Parent ]
yeah, could be worse, (0.00 / 0)

but it could also be better.  The LATimes has an interactive go-solve-the-budget-mess-yourself page (http://www.latimes.com/news/local/budget/).  Just

--ceasing to waste prison money on nonviolent offenders who could be paroled or tracked instead,

--and raising taxes (mainly on corps and top 1%, but also the gas tax & vehicle excise tax)

is enough to generate billions of surplus.  You don't even need to peg all the taxes to the max. We could have a functioning state at a cost so low it wouldn't even be felt.  (Yowled about, yes, but not really felt.)  And yet, somehow, it's impossible to get that simple point across to too many voters.

I was pointing out to a colleague, who votes down all taxes on ballots, that if she'd voted for education these last few years, she could have avoided the over-$10,000 cost per year of sending her son to private school.

A few dozen dollars on one side, and dozens of thousands of dollars on the other.  But I didn't see her get the concept that taxes can be a cheaper solution to some problems.


How do you figure? (3.00 / 2)
That throwing more money at schools would make them perform better. Isn't the established problem at the schools not the amount earned, but who is earning money and how their earnings are determined?

[ Parent ]
Established by whom? (0.00 / 0)
Neoliberal privatization advocates?  People who want to break the teachers' unions?  You?

Every single time you comment, you use the most obvious anti-government worker conventional wisdom.  The consistency with which you parrot those unexamined assumptions is impressive.


[ Parent ]
OK. Fine. (5.00 / 1)
Let's ask the inverse. Where is it established, and by whom, that lack of funding is all that is keeping public schools from reaching the level of private schools.

Is that also an "unexamined assumption"?


[ Parent ]
i submit as evidence the performance of CA public schools in the 60s (5.00 / 1)
when funding was at the top of the nation, and its performance today, where it is at the bottom.

[ Parent ]
Were they unionized at the time? (0.00 / 0)
I know UTLA came around in the early 70s.


[ Parent ]
Back in the 1960's (0.00 / 0)
California supposedly had the Best Performing schools in the USA, Of course the teachers were under paid and yet, It was said, If Teachers want more money then They'll have to do a better job at teaching, Yet they were the Best around, So how could You teach better? I agree with the others We need an Oil Severance Tax as other states in the USA do that pump oil out of the ground do and We need a split property tax roll for Local Government needs so as to not unfairly burden the State of California and yes the top 1% of Earners need an increase in their taxes, Also the top income tax rate of I think 9.2% needs to be realigned to match the top Federal Income Tax rate as to the income level that It applies to(for some this would be tax relief, For others there would be no change).

[ Parent ]
I went to school in the 1970's (4.00 / 1)
I would say that although California schools were better than many in the nation, that today's schools have higher standards and are doing better by the ordinary and lower end kids than they did then. We are not using the same yardsticks, and I believe also we have more kids in poverty today than we did then.

When I was a student, the smart kids were shunned and the kids who didn't perform didn't worry anyone - they'd be drywallers and mechanics. Today, mechanics require much higher skills and our economy isn't doing as much drywalling.

Fry, don't be a hero! It's not covered by our health plan!


[ Parent ]
California schools (0.00 / 0)
are funded below 2007 levels now.

Although the CPI is flat, costs in real life have increased. Health insurance premiums are increasing by 10% per year or more. Most districts have contracts that give their people small increases for additional years of service or education. Fuel costs fluctuate.

So, we're not even talking about "throwing more money". What we're saying is that established, successful programs are being forced to shed established, successful initiatives because of funding cuts. Many school districts went to a shorter school year this year. Many cut transportation services. In both cases, that means parents are shelling out hundreds of extra dollars a year for gas and day care, and getting less for their money to boot.

Fry, don't be a hero! It's not covered by our health plan!


[ Parent ]
"President Obama, who also counsels Democrats to accept a supposed reality of a center-right electorate" (0.00 / 0)
Not my read on Obama at all. The balance of power in the Senate is center-right, so that's what Obama grapples with.

The bead on this budget for K-12 (4.00 / 1)
is that it is much better than it could have been, but that schools will still see some very tough budgets ahead because of the loss of federal money that came in the last two years and because of increasing expenses for benefits etc.

Fry, don't be a hero! It's not covered by our health plan!

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