California's Budgetary Crisis and Its Solution
California is entering into a financial abyss, an abyss of its own creation. The budgetary disaster that is eliminating health care and summer school for thousands of children, closing state parks, and leading to state workers and small businesses being...
I'm no expert on California as such, but I do know something public policy and how state governments work, or fail to. The ease with which propositions are placed on the ballot in California are a recipe for disaster. Its a valuable tool for limited, and overarching questions (such as whether its time to revamp the state's constitution). They are no substitute for governance. It opens very complex day to day decisions to a high school popularity contest (or whoever has the biggest television budget). Do you want a nice high minimum wage and social benefits for all? Yes! Want to mandate life sentences for anyone caught stealing change out of your cars? Sure! Should we pay taxes for any of this? Hell no! Given the choice, and lack of any real accountability, people will chose a cradle to grave French socialism and a libertarian tax policy. Republicans, for the most part, will villify anyone who wants to raise a tax as a socialist or a tax and spend liberal. It's not about partisan identity, its just about making responsible grown up choices and paying for them.
Yes and no. Many states have initiative systems that do not breed California's problems. Califoria's system needs serious reforming, and they might look to the state of Washington for a start.
That said, initiatives are sometimes necessary to get around bought and paid for legislatures. Many very good things have come from California's initiative system, as well as bad things just like legislatures. But with reform, the initiative is less subject to control by corporations than is the legislature.
Regardless, under present law I believe an initiative is the only way to reform the corrupt budget process, and alas, pain will probably have to hit a lot of Californians before they can see through the lies and exaggerations of the horror that passes for 'conservatism' today, and return to democracy.
While I agree that simple majority-vote democracy would enable the creation of budgets on time and reasonably free of partisan b.s., it’s not going to solve the greater fiscal crisis facing both California and the United States.
Both the national and international economic crashes are/were caused by trade and tax policies set at the national and international level, namely free trade and the tax laws which reward outsourcing.
Simply put, we shipped too many jobs and too much working capital away, and our economies are adjusting to that fact.
If we continue to force American companies to compete on an equal footing with companies located in dictatorships which pollute their environments, we will continue to lose jobs. The money which would have paid taxes here to provide services will continue to go overseas to finance dictatorships and environmental destruction.
In the long run, either we must establish trade laws which bring about fair and balanced trade, or we will continue to watch our Nation and State’s economies decline.
And we will always have to make budgets which use less money to deal with more people who are being impoverished.
Thermal
What am I missing?
I thought the problem was overspending. The state of California is spending more that it collects in taxes. Many people are unwilling to pay more tax. So the state must cut spending. The people have voted for that pathway. So why fight the inevitable?
California should layoff 5 - 10% of its employees, and cut the wages of those that remain by 5 -10%. That would put the budget back into balance, and reopen the debt markets. It would be painful, but that is the solution that is open. The sooner California moves to it, the better.
Delays are dangerous. People and companies are leaving the state every day. The longer they wait, the more the tax base is eroded.
Why does it take so long to get to an obvious conclusion.
California may or may not be over spending. That is largely a result of how voters feel regarding public needs. But the problem here is NOT overspending. The majority never gets the chance to decide whether they want to pay for what they get.
If a budget is passed with majority vote, and people are unhappy with it, there is an easy solution at the polls. Vote 'em out.
Under the current situation, a small minority of California voters can hold the others hostage to get programs they do not like eliminated even though they are supported by a majority.
I am sorry to say it, but Republicans have done this here in California over and over again. Lets try democracy.
The problem, the thing that has exacerbated this, the thing that has turned our once Golden State which used to have the best schools, the highest grades and test scores, the best well kept roads, etc.,: Proposition 13.
Proposition 13 must be repealed if we are ever to recover from being the 3rd world nation we have become.
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