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We're Going To Need A Bigger Boat

by: David Dayen

Fri Dec 19, 2008 at 14:15:11 PM PST


I appreciate Bob's sentiment that the time is now to fight the Governor and the Yacht Party and bring some sanity into the fiscal process, but my fear is that the time for that was three years ago, when the successful fight against the special election should have been built upon, and at this point, we're already swirling in the bowl.

Let's just get you up to date.  All infrastructure projects are currently shut down.  Unemployment nudged up to 8.4% in November, the state lost 41,700 jobs last month, and up to 200,000 more jobs are on the chopping block from the public works freeze if it continues.  Meanwhile the Governor is ordering up layoffs and furloughs for state workers, so just add those on top of the pile.  You're likely to see a 10% cut in state employees, and a 10% reduction in the salaries of those who remain.  More job loss means less income tax and probably less sales tax, as well as more need for public assistance.

And that's before a budget which could have further reductions to state employee paychecks, elimination of overtime and meal breaks, etc., is signed.  Not to mention the billions more in cuts that the Democrats included in their work-around plan which the Governor threatened to veto.  Schools, which were slated for $4 billion in cuts in that budget, have already gotten the jump on the state by cutting back their local budgets.  After-school sports, libraries, and new teachers are probably all going to go.

This is a nightmare beyond the ability of many, even myself, to comprehend.  It's so big that it'll affect everything, and the idea that a ragtag band of liberals have the power to stop the freight train from coming down the track is precious, but I think wrong.  This is the accumulation of 30 years of bad policy and worse government structure, and that's not going to be turned around in the time it needs to be to avoid catastrophe.  Even George Skelton, poohbah of all poohbahs, admits that the Yacht Party is so nakedly ideological that they have made the state dysfunctional.  This work-around budget is good for the time being, but Schwarzenegger is clearly committed to hijacking that process.  It's a large game of chicken that none of us can afford.  And as I've noted, even balancing the budget - which the work-around does not do - will not necessarily restart infrastructure spending, and even federal help might not be able to do that.  

Changing the constitution with a convention is a nice idea, but not so easy in practice, as we all know.

Talk of calling a constitutional convention has been banging around California for at least the last few decades - maybe since 1851, for all I know - and it's gotten a lot louder recently. Here, however, is the rule for calling a convention:

The Legislature by rollcall vote entered in the journal, two-thirds of the membership of each house concurring, may submit at a general election the question whether to call a convention to revise the Constitution. If the majority vote yes on that question, within 6 months the Legislature shall provide for the convention. Delegates to a constitutional convention shall be voters elected from districts as nearly equal in population as may be practicable.

In plain English: you need a two-thirds vote of the legislature to put an initiative on the ballot and then you have to get it approved by the voters. The problem is that no matter how sweetly liberals might croon about what a convention could do, conservatives all know the truth: the whole point of the thing would be to get rid of our insane two-thirds requirements for passing budgets and raising taxes. Unfortunately, our whole problem is that Republicans control (slightly more than) one-third of the legislature. And if we can't get them to vote for a tax increase in the first place, what are the odds we could get them to vote for a constitutional convention called for the express purpose of making it easier to increase taxes? About zero.

OK, but how about a simple initiative? We could get rid of the two-thirds rule just by collecting signatures and getting a majority vote, right?

Right. And we tried that just a few years ago. Prop 56 was supported by all the usual good government groups and would have reduced the majority needed to pass budget and tax measure from two-thirds to 55%. A bunch of other fluff was added to make it more popular ("rainy day" funds, no pay for legislators if they don't pass a budget, etc.), and in the end.....

....it got whomped 66%-34%. No one was fooled for a second. Everyone knew the whole point was to make it easier to raise taxes, and so it lost in a landslide.

I think a similar proposition to 56 wouldn't crash so hard today, but it would certainly go in as an underdog, because the majority of the state still doesn't understand the consequences of all this failure.  It's a "dysfunctional electorate," as K-Drum puts it, as well as a dysfunctional government.

Do we need to fight?  Yes.  But we need some arms shipments from Washington (metaphorically speaking) before we can do that.  A rescue package for the state is desperately needed, and it got a whole lot more so yesterday when the Governor vetoed the work-around.

David Dayen :: We're Going To Need A Bigger Boat
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2/3rds and Prop 56 (0.00 / 0)
  Here's a more manageable agenda.

 1)  Put on the ballot to change the budget to simple majority.

 2)  Put tax increases on the ballot.  Increases that would pass easily (under current conditions) are to raise top income bracket tax rates (this was done in the 90's and lost by 1-2% points, in a much more conservative state), and split-roll (taxing business on property at market rates).  Incidentally, once a tax increase is done by initiative, it can't be undone by the legislature.

 3)  Try to reassemble the coalition.  The problem is that certain things are "sexy" (gay marriage, animal rights) while other things are just depressing (care for the elderly and infirm).  Here's a chance for the unions to carry the load for a while (they took a whiff on Prop 11 under the idiotic theory that if they pay for a legislator's election, that's a vote for them--ha.  We could have had 2/3rds in 2012).

 Note that 1 and 2 should start now.  Why?  Because Schwartz will eventually agree with the Dems on the fee increases (he doesn't want to be governor when the schools close in April or 100,000 prisoners are released).  The Reps will referend it, cutting off this revenue.  Schwartz will call a special to get the revenue back, so we need to be ready with our initiatives.


It's becoming chicken and egg (0.00 / 0)
I've seen even some progressives argue that California doesn't deserve federal assistance since it's all our fault, that voters chose a broken state and we should suffer the consequences. Yet we are at a point now where it's impossible to balance the budget on our own without federal aid.

Arnold could have helped resolve the conundrum but instead chose to send the state over the edge with his veto promise. That budget solution would have shown Congress and the nation that our government was serious about fixing our problems. Instead our state is being run by a right-wing junta that is bent on using the economic crisis to smash what remains of the New Deal.

You can check out any time you like but you can never leave


Budget Reform is top priority! (0.00 / 0)
Virtually all the REPs in Sacto are held hostage by their own inflexible ideology--not to mention that out-of-state extremist G.Norquist.

The Dems must move full speed ahead with an initiative constitutional amendment that allows the state budget to be approved by a simple majority vote and any tax increases to be approved by a 60% vote of the legislature.

This would give the majority in the Legislature the ability to set priorities--which is what budgets are all about--while still requiring a more 'reasonable' super-majority (60%) for approval of tax increases.

In years when additional taxes are not necessary to balance a budget, the Democratic majority would not have to worry about needing a supermajority and would be able to get a budget out on time.  

In years when increases in taxes are on the table due to a projected significant revenue shortfall, negotiations would have to take place to achieve a 60% consensus of state legislators.  60% means 48 votes in the State Assembly, and 24 votes in the State Senate.  The Democrats currently have 51 and 25 respectively--although that could change after the next redistricting process is completed.  

The California electorate will not support a mere 50%+one requirement for tax increases, so the proposal I suggest would make the most sense in terms of balancing meaningful reform with the need to get the electorate to support that reform at the ballot box.

It would take a massive campaign to pass this initiative above; but I believe it is doable.  What other choice do have?


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