Sacramento's Dangerous Shell Game

On Monday night, California's state legislators emerged from negotiations to announce a so-called "landmark deal." Sacramento had finally agreed on a plan to close the state's perpetual budget deficit. But instead of addressing the fundamental problems that keep Sacramento hardwired for failure, lawmakers chose instead to balance their books on the backs of California's cities, counties and school districts.

And although some in Sacramento are praising this deal, this is not a moment to celebrate. This is not a moment to hail a new day in state government. This deal -- and the system that produced it -- reflects a clear abdication of our state's responsibility to provide critical services to its taxpayers.

The City of Los Angeles alone could stand to lose nearly $275 million in revenue and services this fiscal year. That includes up to $120 million in property taxes and $60 million in gas tax funds that the state is under no obligation to repay.

The State also plans to confiscate $72 million of our funding for redevelopment projects. This will mean a severe setback in the progress we've made cleaning up the streets of Hollywood, Downtown LA and dormant sections of the San Fernando Valley and undermine the 2,300 construction workers whose livelihood depends on these projects. The State is not just taking $72 million away from our poorest neighborhoods. It's destroying the foundation we have built for economic recovery in this City.

These cuts are simply unacceptable. They take aim at our City's purse strings while our local families get caught in the middle. They target our efforts to stimulate the economy, and gun down new investments in infrastructure, job creation, and the green economy.

We will not stand for highway robbery, and we are currently evaluating every legal option at our disposal to ensure that Los Angeles does not suffer from the misguided priorities of this budget proposal.

cross-posted at www.mayor.lacity.org

Follow Antonio Villaraigosa on Twitter: www.twitter.com/villaraigosa

Comments

[WeWon]

Lived in Sacramento for 18 years ... hated it.

[countfloyd]

Good jobs people. Until we can get Americans back to work in better paying jobs this will continue. You can't get revenue from people who don't make any money. Our economy has been bleeding since the 70s with no real fix and it has hit critical mass. The stimulus needs to be spent this year and on infrastructure work. If you raise real earnings for the shrinking middle class and get unemployment down to 3% then the problems won't be so overwhelming.

[LITU]

Disaster capitalism has come home to roost.

[FloresdelaHoz]

Proposition 13 is welfare for native Californians who own property. Reagan's voodoo economics destroyed California and critically harmed the US.

[LeonBNJ]

It is too bad the Federal Government doesn't bail out the State and Local governments like they did the big financial companies. California could use $3-4 Billion a year to offset part of the costs of providing health care, justice and social services for the 1 million+ illegals there due to Federal policies.

California already has high taxes, so raising them was not an option, fearful that it would chase out more higher income people and the employing industries. Still, perhaps a higher short and long term state capital gains tax on property 'flippers' who help pump up the property bubble there, a major part of the financial crises the state and the country faces, should be consdered.

[RaderBarbarian]

There you go! Blame the "illegals" - don't take responsibility for your own mistakes, such as Proposition 13 and all the other mandates the good citizens of California have decided to spend someone else's money on. Your SYSTEM is broken, and no "illegal" had anything to do with that. But hey, YOU aren't responsible - it's the other guy's fault. The "blame game" is an American specialty - why do you think Americans are so "lawsuit" crazy? Because they refuse to take responsibilty for their own actions. Yep, that's the good ol' American way. California is getting exactly what it deserves, and "illegals" had nothing to do with it.

[Osusuki]

There is no logical reason not to raise revenues in California. For all the conservative whining, California stands 17th in the nation in total tax burden as a percentage of GDP. Carp about the illegals all you want, it's the native Californians who are killing the state by continuing to support no-tax-no-brains Republicans.

[Lendall]

I happen to live in Los Angeles' fabled "San Fernando Valley," and I have a quick question for our mayor: Which portions of said Valley are "dormant"? In my neighborhood, nice, middle-class single-family homes are being torn down to erect cheap apartments, thus increasing traffic and congestion. And also -- let's face it -- apartment dwellers, nice as they can be, do not have the same stake in the neighborhood as old-time middle-class homeowners.

I must confess that I am not an authority on the specific "redevelopment" projects the Mayor is talking about. Surely what Los Angeles needs is more shopping malls, ticky-tacky condos and vacant office buildings. Quick: Let's clone "The Grove" twenty times, and pay for them with tax money.

Here, Mr. Mayor, are my concerns: #1. Saving the State University System. #2. Saving the State Park System. The Governor has threatened to CLOSE several in the L.A. area, include some of the nations most beautiful, such as Topanga State Park. But hey, who needs them, if you can build another Universal Citywalk.

I agree with economist Joseph Stiglitz: It is wacko economics to fire lay off university professors to hire construction workers.

[LMPE]

California, the next time that you elect a movie star governor, at least elect someone with a brain. Third time would have to be the charm, right?

[LITU]

It is safe to say the obvious that programs are always the first and foremost to be cut in a budget, but NEVER penalize the corporations. After all, businesses provide the jobs, right? Okay, maybe not so much any more, but just in case that should change...

[FortressOrange]

They never touch the unions either. How strange. Why would you 'penalize' business in California when companies are already leaving in droves because of the unfriendly tax/regulatory environment?

[LITU]

Huh? So cuts to teachers, firemen, and police doesn't qualify as cuts to unions?

Not just penalize businesses as much as spread the penalties around equitably. If businesses are leaving in droves, they're not relocating elsewhere in THIS country (in droves).

[LITU]

(If this gets duplicated, it's because of moderation.)

Huh? So cuts to te_chers, firem_n, and p_lice doesn't qualify as cuts to uni_ns?

Not just penalize businesses as much as spread the penalties around equitably. If businesses are leaving in droves, they're not relocating elsewhere in (this) country (in droves).

[j mcdouglas]

This is what California gets for making a bad actor our governor.

What a joke.

We deserve to be laughed at.

[zizyphus]

Legalize cannabis, and let the economy boom there. Must I belabor the obvious?

[JonathanDS]

Let me know when you're not afraid to be a leader when it comes to undoing unjust laws against pot - or are we all still pretending that this issue is irrelevant to a serious discussion of ways to increase California's revenue?