At a time when Californians needed him most, Gov. Gray Davis
turned his back on them.
At a time when Californians needed him most, Gov. Gray Davis turned his back on them.
He had a chance to put forward a proposal that would fix the budget problem and at the same time help California’s fragile economy grow. Instead he wants to burden us with more taxes.
During Davis’ tenure, the population of California has increased 21 percent, state revenues have increased 28 percent and spending increased 38 percent.
It is no wonder the budget is out of balance. We have plenty of money in the budget, we need to curb spending. And how has Davis proposed to deal with it? Tax more.
The governor and Democrats took advantage of a one-time increase in tax revenue from capital gains and stock options during the dot-com boom. Much of that tax money was devoted to ongoing state programs, even though the gains were only temporary.
The governor’s proposal to deal with his $26 billion budget shortfall is the wrong direction for California. Higher taxes means less revenue for job creation and that will lead California further into recession.
Small businesses and the everyday worker will be hurt by the new taxes proposed by the governor.
A study conducted by the governor’s own Department of Finance two years ago concluded an increase in sales tax would lead to a decrease in consumer and business spending. Raising the sales tax isn’t an incentive for businesses to stay in California and create new jobs. It will, in fact, contribute more to the mass exodus of jobs from the state.
The governor has also proposed a “state-local government realignment.” Translation: Local governments will be expected to pick up the tab for state programs.
As we have seen in the past, liberal schemes to give local governments more decision-making authority have arrived as unfunded state mandates. Too often, local governments – forced into implementing the programs – are left holding the bag when the bills come due.
Vehicle License Fees are another problem. Liberal legislators upset the tax was cut in 1998 are bent on re-establishing the tax even though it would hurt a majority of Californians.
These same lawmakers are now using scare tactics and threatening to take away the VLF money from local governments unless the fees are tripled to help balance the budget – once again kicking California’s cities and counties when they’re already down.
The governor has said he will veto such legislation, however, the possibility still exists that he could increase the fee administratively through a “trigger” if the budget situation gets bad enough.
I say if Davis is serious about not raising the fee, that he veto the legislation and not raise the fees administratively, either, and leave the existing VLF money in the budget for local governments.
Davis’ proposal also calls for nearly $4.5 billion in education cuts. I do not support this meat-axe approach.
Our education system is near the bottom in the country and yet the governor has increased spending on many less worthwhile programs. Our children did not create this debacle the governor should not mortgage their future to clean up his mess.
A well-educated work force will help attract more businesses to California.
Cutting educational programs only undermines job creation.
The governor is missing a historic opportunity to use the budget deficit to greatly change the way the state operates.
Shouldn’t a top-to-bottom review of all state agencies and programs be conducted?
Five things need to happen this year to ensure budget shortfalls like this don’t happen again:
A moratorium needs to be placed on any new regulation or piece of legislation that punishes California businesses;
There needs to be a rollback of a number of laws and regulations already on the books that are punishing California’s businesses and hurting job creation;
A hard government spending freeze must be implemented;
A cap on future spending must be enacted, ensuring that a mess like this never happens again. A similar cap in Colorado helped ease its budget problem;
No new taxes can be levied on an already tax fatigued population. You cannot tax your way out of a budget deficit.
We can’t continue to overtax the good people of this state and at the same time cut education, local government, law enforcement and healthcare. It took years of overspending to get to this point and it will take a multi-year spending plan to clear the budget problems. Quite frankly, the governor is still showing little leadership on this whole issue, and his approach is wrong.
