This story was reported for San Diego News Network on November 5, 2009.
While the reasoning for California’s budget disappointments are being explored, a major newspaper is ripping up the Golden State’s elected officials. Meanwhile, high school students will be able to get jobs with less red tape.
The root of the problem: A professor at San Francisco State University is telling the Golden Gate Xpress, what went wrong with the state’s budget.
Al Hyde told the news outlet that the state government didn’t prepare itself for the economic downturn. Additionally, Proposition 13, a major 1978 initiative which restructured the state’s tax system –contributed to the staggering deficits Californians see each year.
But that’s not it, the reporter wrote. There are two more reasons:
“There are two sets of political factors that contributed to the crisis, according to Hyde.
First, the political process of the state budget requires a two-thirds vote of the legislature to pass the budget. Which means that some part of the minority party must approve the budget — if the Republican Party does not accept any tax increases, the budget will only pass if spending does not exceed revenues. This sounds right, but this process works in low-stress, positive economic times, not during recessions, when revenues fall, stated Hyde.
Second, the standard for passing a voter referendum in California is low. This means it is relatively easy to get the petition signatures to put things on the ballot and with some advertising and low voter turnouts, passage is relatively easy, Hyde said. In this way voter referendums can omit funding for programs and incorporate some degree of popular control in the budgeting process that can override fiscal discipline.“
Unhappy Californians: A Wednesday opinion piece in The Wall Street Journal is claiming that the state is “stealin’.”
Citing the recent 10 percent increase in income tax withholdings, the newspaper describes the change as “creative financing.” But the newspaper is looking ahead, too, and they’re asking what will happen in the future?
“Of course, the government is obliged to return this money next spring when workers get their tax refunds, so this is the ultimate budget gimmick. It borrows from taxpayers now and deepens the budget hole next year. And we almost hate to ask: What happens come April if the state doesn’t have enough money to pay the tax refunds it owes its citizens? Will taxpayers get IOUs the way state contractors did last year when Sacramento ran out of money?”
The newspaper goes on to state that it’s time for elected officials to revamp the state’s budget.
“The politicians could use this continuing crisis as an opportunity to reform the state’s tax code with lower rates and fewer deductions and loopholes, as recently proposed by the governor’s tax reform commission. But that plan has been panned by the ruling classes in Sacramento. They claim to want to steal only from the rich, but their latest withholding ruse is showing that they’ll steal from anyone with a paycheck.”
Working students: Gov. Arnold Schwarzenegger signed Assembly Bill 66, allowing public and private schools to issue student work permits as they see fit.
High school students less than 18 years of age in California are required to obtain permits to work while they’re in school.
Authored by Assemblymember Joel Anderson (R-El Cajon), the bill eliminates bureaucracy and makes it easier for students to obtain the necessary permits to earn a paycheck.
After the bill was signed, gratitude was seen from local educators.
“This law protects the welfare of students and ensures that those educators that know their students best are making these important decisions – plus it removes an unnecessary layer of bureaucracy in the education system,” said Rob Shield, President of the Grossmont Union High School District Board of Trustees.
Hoa Quach is the political editor for the San Diego News Network.