The Republicans Win Big in California!

Governor Arnold Schwarzenegger and his horde of retrograde Republican lawmakers got everything they wanted in a horrific bargain with Democratic legislative leaders that has ended (for the time being) California's budget impasse. Not only will there not be a single cent raised for the state by taxing oil or tobacco, Schwarzenegger and the Republicans privatized $1 billion from the workman's compensation insurance system, gutted all levels of the education budget, pauperized state workers with a third "furlough" day each month, raided the coffers of local governments, and even gave away the first new oil-drilling leases off the Santa Barbara coast in 40 years. How any of these steps help the state in any way in anybody's guess.

"We had one hand tied behind our back," Senate Pro Tem Darrell Steinberg said, because the Republicans used the governor's office and their slender minority in the Senate to take any tax increases off the table. This maneuver left the hapless Democrats with nothing really to "negotiate" except how to use accounting gimmicks to make the dismantling of the public sector in a time of recession appear marginally acceptable to the public. The governor wanted to "eliminate" the state's welfare system. Instead, it's only gutted. The Democrats gave the Republicans 99.99 percent of everything they wanted. I guess we should consider ourselves lucky that the representatives of the Democratic majority held out for that .01 percent! Yippee! Things could have been worse. The Democrats could have agreed to shred the public employee pension system as Schwarzenegger had originally demanded. Last February the Democrats agreed to put the "open primary" on the 2010 ballot, which only benefits Republicans and explains why they wanted it so badly. I suppose we could have lost another structural reform. Just wait until October when the next set of budget "negotiations" begins anew. When Arnold Schwarzenegger calls an agreement "a really great, great accomplishment" you know average Californians are in for a fleecing.

The $1 billion the Republicans have stripped from the workman's compensation insurance system is an experiment in privatization every bit as reckless as the privatizing of the energy grid, which led Californians to become hostages to the machinations of Enron, Duke, and Reliant energy corporations. The workman's compensation insurance market now will become more volatile because so many Enron-types are going to be gaming the system the net effect will be to raise premiums on businesses doing relatively hazardous work in the state. Why the Republicans do not consider this privatization scheme a "job killer" when they do so when talking about any small tax increase on oil or tobacco is probably because there are "special interests" tied to the GOP that are licking their chops right now about all the money they're going to make off gaming the system.

Downsizing public education, including the University of California and the California State University systems, means the state is going to fall behind not only in science and technology (as 300 U.C. professors stated in an open letter to Schwarzenegger), but also impair the state's ability to recover from what everybody agrees is the worst economic slump since the Great Depression. Without an educated workforce there will be no recovery.

Pauperizing the state workers with a third "furlough" day each month will lead to more home foreclosures, dry up consumer demand in parts of the state, cause bitter conflicts with labor unions and undermine the quality of life for the people of the state.

Raiding the coffers of the county and municipal governments to the tune of $4.7 billion at a time when many cities and counties are struggling with their own budget deficits will further undermine local services and deteriorate roads, infrastructure and even public safety.

And drilling off the earthquake-prone coast of Santa Barbara for the first time in 40 years is an environmental catastrophe just waiting to happen that could cost the state billions of dollars.

Lost in all of the anti-tax euphoria that the Howard Jarvis/Grover Norquist/Tea Bagger crowd has imposed on us is the fact that state workers, teachers, and local government employees all provide vital services to the citizens of the state. These draconian budget cuts will hurt the public and the politicians who run both parties are eventually going to hear about it. The next time in a campaign when you hear a Republican talking about how he or she "values" education or any other public good remember what they did to California in 2009. We should also note that all this budget cutting without any serious attempt to raise new revenues works to the disadvantage of the federal policies the Obama Administration designed to lift the nation out of its current economic crisis. The Republicans have won a stunning victory in the most populated state even when all they have to offer us at the national level are "leaders" like Mark Sanford, John Ensign, and Sarah Palin.

Comments

[Toni]

No leading criminologist or sociologist believes that prisons are doing one thing to prevent or reduce crime. Quite the opposite is true, people are coming out much worse off than before incarceration. Crime has changed very little since the 1960's. The problems we have in society today are that we have been taking this mentality of punish them all and lock them up/ throw away the key mentality. With well over a decade or so of doing this now we get to see the results of these actions. Including laws that shouldn't be laws, such as three-strikes,etc. The prison population is such that inhumane conditions are now at a point of death/s & Fed Receivership has had to take control of the medical in CDCr. In addition, ruthless & uneducated prison guards with just sixteen weeks of training, passing judgment and executing their own biased punishments upon inmates, less & less inmates being paroled and hardly no rehabilitation programs inside the prisons nor outside when the few lucky ones are released.

We need to confront and look at the real issues that cause crime and address them at the roots, not just the symptoms. Low morale and support of single parents homes, in poverty stricken neighborhoods, drug addiction, fatherless homes, mental illness, just to name a few reasons why crime happens. It seems to me we need to focus on education-­healing-co­unseling and much more community programs-t­raining-su­pport for the most vulnerable neighborhoods and families.

[realpolitic]

As a dedicated Democrat, I am embarrassed by how quickly we capitulate. Instead of holding our ground, we so often bend and break, whie Republicans are their typically inflexible lot. I believe the people are with the Democrats, but we bend much too quickly. I can not believe Schwazenegger wanted to totally eliminate the state's welfare system. With the residual mortgage crisis and so many losing their homes, he wanted to put renters out to. Well, Republicans will not be happy until the country is divided between the extremely wealthy and the economically vanquished.

[VikingQuest]

"I believe the people are with the Democrats"

So why did the people vote down tax increases?

[realpolitic]

You mean the tax increases in California? Like I said I think representatives representing the Democratic party bend too easily. Though Republicans are in the minority in the California state assembly, Professor Palermo has described a system in California where the minority can easily block legislative maneuvers. I am not real familiar with it, since I am originally from Illinois.

[Tim303]

"Hasta la vista to the car tax baby!" Yippee! I won't have to pay an extra few dollars.

[leduck]

california needs a new state constitution

[leduck]

i'm sure the oil companies would rather have Iraq then santa barbara. Light, sweet Iraqi crude. Far, far more then anything in santa barbara's heavy, thick, sour crude.
as for Californin Democrats. There's little they can do in a budget crises to get their way unless they have a 2/3 vote. They need 2/3 to pass a budget and 2/3 to increase taxes, which gives the party out of power, the power to get it's way. Even though the republicans are the minority.
basically, our system tries to be so far, it does the exact opposite. It's stupid

[confidance government]

Yeah, but the location is better. If its economical at $60/barrel I am sure some oil companies will be interested.

I would rather hold an asset like a production platform in Cali than in Iraq (or the entire ME for that matter.)

[PRAYFORJUSTICE]

What was there to negotiate, all of you went along with the gov. whats so hard about saying no have all the Democrates lost there integrity or did the sell it down the river to fill there own pockets, and honestly what have we as Americans and citizens of California lost , We've been betrayed by a bunch of self serving old windbags that don't care about the state only there own pockets. Look at our young that are trying to learn something in school to maybe better our situation ,they cut the money that we as tax payers work for to educate them, they have cut from our Elderly our Disabled and our Poor for there own profit. The prison system is horrendouse and yet they refuse to release prisoners that are old sick or nonviolent , so that there special interest groups will have job security and by cutting from education making sure that the prison system will always have plenty of occupants,how stupid right now I'm actually ashamed to say I live in California. Get rid of the Gov and his crooked politians and get honest people that are for the people of California before this gov finishes what he started out to do!!!!! Does anyone remember Hitler?????

[leduck]

do u know how the system in california works?
dems need a 2/3 majority to get there way
if they don't have 2/3, then the minority party
has control

the dems didn't have 2/3, therefore, there
was nothing they could do.

except maybe change the law, but that would
probably requie a 2/3 majority, which they don't have

[Bethab]

Wow...I don't usually comment on spelling and grammar, but this was too painful to ignore!

[skeck]

Fact #1 Ca is ranked 50th out of 50 states in terms of being a business friendly environment
Fact #2 Businesses are fleeing Ca in droves due to # 1
Fact #3 They are taking their jobs and tax payments with them
Fact #4 Productive citizens are following, also taking their tax payments with them.
Fact #5 High net worth individuals are also fleeing in mass
and establishing residency in other states. However, many do retain 2nd homes here.
Fact #6 Continuing to pursue the present policies will lead to acceleration of all of the above.
Fact #7 Major structural changes are needed statewide to reverse all of the above and put the state back on the road to financial well being
Do Californians have the will to put aside partisan bickering, the name calling, etc. and get this done ???
If the posts on this website are any indication I am not very hopeful
Signed, 3rd Generation Ca Native

[Hollow Justice]

If all of the people/businesses are leaving, then why is California still the most populated state in the union? Hmmmm, guess somebody has been listening to too much Fox News and drinking the Kool-Aid!

[skeck]

Thank you - You just made my point.

[Disdain]

I beg to differ. CA may be the most populated state in the union but the majority of its inhabitants take more from the government than they bring in. Those who do contribute, the businesses and the wealthier are being forced out because they are tired of being fleeced. You loose that group and your loose a good chunk of your state revenue.

[delang]

IM so sick of the scare tactics thats been going in for yearsss about prison not all inmates are bad.... This is just one of many proofs that the parole system is designed to fail in order to keep CCPOA's cash rigesters ringing -- the more prisoners in custody the larger the appropriations from the state legislature: more prison construction, more big raises, increase in staff, more awards of contracts for supplies, goods and services, etc...
ARNOLD for the frist time i like what you are doing on release of prisoners
please do the release I for one would love to have my son home again with us i will do everything i can do to help him..

[MSB]

Truly moronic.

The prisons in California are housing exactly the people that the citizens (through the legislature) of California are asking them to. Prisons are actually substantially understaffed and overcrowded.

I wonder what you might be saying if your opinion wasn't distilled through the view of a concerned and affected parent. You are correct that not all inmates are all bad, however, to get into state prison you have to do more than steal a Snickers bar.

[greyhound2]

In the long list of cuts, I see education is going to be lopped about $9 billion. Nowhere on the list did I see a cut in the $9 billion California spends on welfare for illegal aliens. Doesn't look like a fair trade.

[delang]

Just hurry up and release them if that will save some money. Stop with the scare tactics. I don't think it has been safe to leave your doors unlocked for years so it won't make any difference. Maybe we can save some money and give our children a better education so they don't end up in prison and add to the proble

We just can't afford prison for every crime, no matter the reason.

[JScott]

Yup now the electorate will come face to face with the effects of 'no more taxes, no matter what'.....
too bad those who vote and those who make policy (the elected) seem to all be listening to Fox News or it's equivalent talking head pundits of the RWNM or just the NM, instead of being engaged in a serious (intelligent) discussion of what government should pay for and the funds to pay for it. Sadly the elected and the electorate seems to be clueless about this, the electorate doesn't wanta be engaged in it and the elected would rather just not talk about it.

[leduck]

u can have a tax increase in california
but u need a 2/3 vote to get it

good luck

[AurigaRa]

what a shame

think of how a small tax on all the wealthy in that state could've helped - those who can afford those million dollar homes????

GD Selfish republicans

[thefirehorse]

Just another way the Repubs are sabotaging the Presidents recovery plan. From turning down TARP funds to increase the unemployment rolls to hijacking the rebates that all Californians were suppose to get by implementing a payroll tax. This is a systematic and concerted plan to fracture the Nation even more. All you need to do is make things so bad that no matter what the blame will be directed at the Dems and the President.

[Twobill]

Socialism is great ...UNTIL IT RUNS OUT OF OTHER PEOPLES MONEY! Why would we, the United States of America, want to pattern ourselves after ANYONE else in the world. We have facilitated the progress in the rest of the world, we have been and still are the looked up to model of freedom and self making incubator.

How much "of a small tax increase" has this editor or any of the TAX increase crowd volunteered to send in THEIR extra money to the government on their own moral convictions of increasing revenue for the good of the STATE. If you liberals are convinced that we need more taxes, then send in more taxes. You are the majority power, you have my vote to freely increase your tax contributions as high as you want. I'm crazy you say. How crazy is redistribution of wealth to a consumer instead of a multiplier?

The safety net is a wealth consummation process where as reinvestment into the future is a wealth multiplying process. A great American philosopher one said, "I never had a poor man offer me a job" Will Rogers.

MY QUESTION TO YOU IS: HAS A HAVE NOT EVER GIVEN YOU A JOB?

Please get off the MORE TAXES NEEDED kick and empower wealth generation processes.

My name is BILL Sallee and this is my opinion!

[Hollow Justice]

Well, BILL Sallee, it seems to me that Republicans are not against welfare for the rich, just look at the bailouts of Wall Street firms, banks, and others at taxpayer expense. It only seems that they are against welfare when it involves poor and working class folks! (ask Alan Fishman where I can obtain a job and be compensated $20 million dollars of taxpayer money for 17 days of work, company fails, and be viewed in a positive light-----­--Republic­ans, aghhh!)

[MSB]

You apparently don't know that for the majority of our country's history, very progressive taxation was the norm.

Reagan dropped the upper rate precipitously, and in so doing, contributed immensely to our rapidly increasing instability and decline. It is also humorous to see the U.S. as your absolute model for progress worldwide. There are numerous cultures far older than ours. We are a young country, and the way we are currently acting, we are leaving our perch rapidly, as did other imperialistic powers.

I'm not holding China up as a standard for anything other than longevity, but they have been around for 4000 years - the U.S. for 233.

[confidance government]

"How any of these steps help the state in any way in anybody's guess. "

By eliminating their budget shortfall, that's how its helping them. They had to either increase revenues or reduce expenditures.

Regarding the cuts in the state's education budget; California has some of the highest per capita outlays for education in the nation, and delivers abysmal results; performance is not a linear function of cost. Reform in their education system is needed much urgently than funding. Most Higher Ed has been on an unsustainable spending binge that was for the most part not related to either research or education, they now have to deal with the consequences.

As far as the 3 forlough days a year go, its not ideal, but its better than laying people off. And honestly, how much will a 15% decline in gross (before-tax, after tax the difference is even less) salary without a corresponding reduction in benefits "pauperize the entire states workforce. Granted a lot of people will not have that sort of flexibility in their budget, but raising taxes on fuel would have probably also put these people in the red all the same.

Arguably they could have done a lot more, by selling the states' fairgrounds, golf courses, and any other buildings or facilities that are not neccessary for the running of the state. The fact remains, however, that it was a choice between accelerating capital flight from the Golden State or reducing their expenditures.