Political games amidst California’s budget crisis

This story was reported for San Diego News Network on June 23, 2009.

One week from Tuesday, state legislators will have to pass a balanced budget and Gov. Arnold Schwarzenegger will have to sign it.

But just as it typically is in the world of politics – such a task is never completed without a tug-of-war of what’s most important (or least important) to each political party. The Democratic caucus wants tax increases and Schwarzenegger, who wants more cuts to the budget, said he would veto any proposal with the Democratic-supported measures.

“I will not sign a budget that has tax increases in that budget,” said Schwarzenegger in Fresno last Thursday. “…to go to you then and ask you for more money, it doesn’t make any sense to me…. I made it clear, this is where I come in-I will not sign this budget.”

The Democratic proposal, as presented last week, asks for less cuts and more taxes. Led by Senate President Pro Tem Darrell Steinberg (D-Sacramento), the proposal asks for $11.4 billion in cuts and $830 million in oil severance tax, $1 billion in tobacco taxes, $125 million in vehicle license fee increases for state park passes, $80 million in corporate taxes and $76 million in fire fees.

Schwarzenegger, on the other hand, simply asks for $16 billion in cuts – protesting that the $12.8 billion tax increases in February are more than enough. Clearly exhibiting his executive power, Schwarzenegger made it clear that he would not sign any new budget with tax increases – he sang the same “We can’t spend more than we have” tune.

For the Democratic proposal to even make it through the legislature and on to the Governor’s table – it would require the support from the entire Democratic party including four Republican assemblymembers and two Republican senators.

“This budget solves the problem, addresses the cash crisis, doesn’t rely on borrowing, and doesn’t completely dismantle the state’s safety net,” said Steinberg during the unveiling of the Democratic proposal. “We’re not throwing in the towel on California. There are going to be better days, and we’re going to start by getting this done by June the 30th.”

But Republican Assemblymember Martin Garrick (R-Carlsbad) thinks both proposals present short-term solutions that have been used in the past.

“Unfortunately, the short-term solutions passed over the last few years have only compounded the problem,” Garrick said.

Garrick also said he and fellow party colleagues have attempted to present long-term solutions to no avail – thanks to the game of politics.

“The short-term solutions have been used because most of the long-term solutions are politically difficult,” he said.

The frolic of politics have become more interesting this fiscal year with the Republican governor and the Democratic senate president exchanging gag gifts. Last Friday, Schwarzenegger sent Steinberg a metal sculpture of bull testicles. The gift was meant to tell Steinberg to make the tough decisions.

The account was given by sources within the Capitol who were familiar with the situation. They said they were not authorized to speak on the record because it was considered a private matter between the Republican governor and the Senate leader.

According to the sources, Schwarzenegger’s gift was in response to an earlier gag gift he had received from Steinberg: a package of mushrooms after the governor called Democrats’ budget proposals, which included tax increases, “hallucinatory.”

Schwarzenegger spokesman Aaron McLear and Steinberg’s spokeswoman, Alicia Trost both declined to speak about the exchange.

Garrick commented on the exchange though and he said the gifts were simply meant to lighten up the tension between the leaders.

“When you are in a tense situation it is sometimes appropriate to lighten the mood with a little levity,” Garrick said. “I don’t think either party involved should take things personally.”

But the view of the capitol from Coronado isn’t so bright. Coronado Mayor Casey Tanaka, a Democrat, said he has not been impressed by both Republican and Democrat state legislators. Tanaka said he is frustrated that legislators are not looking at the bigger picture.

“The problem is there is a structural deficit but legislators are not addressing it. They are not basing the deficit on problems they are uniquely responsible for,” Tanaka said. “They seem more able to find year-to-year solutions rather than look at the bigger problem.”

Tanaka, who is waiting to find out if the state will take property and gas tax revenue from local governments, also said the leaders need to stop looking at local municipalities for assistance.

“It’s wrong for the state to keep looking at cities and counties as a way for money,” he said. “The state doesn’t have a handle on any budget – if they can’t handle it, how can we?”

So what’s the long-term solution? For one, Tanaka said, lose the game of politics. Tanaka said having a constitutional convention to restructure the state’s procedures is a fix. He said the fact that there needs to be a two-thirds majority vote in the legislature to pass many bills is silly and clearly allows one political party to “hijack the power.” He proposed having a simple majority that is similar to Congress.

Overall though, he sees the solutions offered by both parties as disappointing.

“I think the shame is that it’s easier for a politician to fail than to succeed,” he said.

Leaders from San Diego City have also been frustrated with state proposals. On Tuesday, Council President Ben Hueso and Councilmembers Kevin Faulconer and Tony Young are holding a press conference to ask state leaders “Do we look like a piggy bank?”

The city leaders may also break a piggy bank for a “dramatic effect.”

Associated Press writer Juliet Williams contributed to this report. Hoa Quach is the political editor for the San Diego News Network.