Today, Gov. Jerry Brown releases his pain-laced state budget blueprint, an event viewed with a mixture of dread and anticipation. HealthyCal's Dan Weintraub, in the first in a series of analyses, takes a look at the cuts, shifts and tax extensions.
"The reason most of this sounds familiar is that there are not too many other options. The state is on a pace to end the current year with a deficit of at least $6 billion and then spend $20 billion more than it will take in next year. The kind of cuts needed to wipe out that shortfall – more than 20 percent on an annual basis – would not be palatable to the people. So Brown is proposing a mix of cuts, new revenue and shifting responsibilities, just as Schwarzenegger did before him."
"The big question is whether the Democrats, who now have the power to pass a budget on a majority vote, will be willing to adopt a spending plan that balances without the new revenue they and Brown will be seeking from the voters, most likely in a special election this June. This would be an ugly budget that would cut deeply not just into programs for the poor but into many services that middle-income Californians value highly, including the schools, universities, parks, and local government."
Getting a budget approved isn't going to be easy: Lawmakers on both sides of the aisle are finding plenty to dislike in Brown's fiscal plans, The Bee's Jack Chang has the story.
"On Monday, the governor is set to propose a budget that includes deep spending cuts to higher education, welfare and other programs, and asks voters to extend taxes scheduled to expire in July. He has said he wants a deal on the package within 60 days."
"But pressures bombarding legislators of both major parties, from anti-tax groups on the right and unions on the left, will make his job harder as budget battles gear up."
A major piece of the budget, targeting an idea that's been tried before with varying degrees of success, is Brown's plan to shift more state power and programs to local governments.
From Capitol Weekly's John Howard: "That Brown has placed realignment at the top of his budget plans is clear: One lobbyist said it was the first time in nearly four decades that an incoming governor had hastened to the counties’ headquarters to confer on budget issues. And the counties weren’t alone: Brown made a similar visit Thursday night to the League of California Cities. Brown and his top staff have been quietly meeting for days with legislative leaders to sell the program, signal the coming budget pain.
“His visit to our offices, for a meeting that lasted more than an hour, was unprecedented and delivered a strong signal that he wants to work with CSAC to craft workable solutions,” noted Paul McIntosh on the association’s web site."
That shift is fraught with peril, reflecting the historic tensions between state and local governments, notes the Bee's Dan Walters.
"Brown appears bent on asking voters to approve higher taxes to close the state's chronic deficit and wants to send part of the money directly to local governments. There is, however, a rub. If the new revenue is to be permanent, they'd be a very hard sell to voters; but if they are temporary, the locals would not accept any permanent reassignment of duties."
"Another rub is that Brown apparently also wants to abolish city redevelopment agencies, which skim about 12 percent of property taxes off the top, and force the state to spend about $2 billion extra on schools each year. Finally, there is the whole issue of land use regulation, local governments' most cherished power."
Speaking of budgets, the LA Times' George Skelton has joined the swelling number of critics of the state's plan to sell off 24 government buildings in order to raise some quick cash.
"This Sacramento swill was cooked up by former Gov. Arnold Schwarzenegger and the
Legislature to feed their addiction to borrowing. That's
essentially what the
transaction would amount to."
"The sale would gross $2.3 billion and net the
state about $1.3 billion after existing loans on the properties were
paid off.
That one-time injection of money already has been acounted
for in the current
red-ink budget. So if Brown dumped the deal, he'd be digging
the deficit hole
$1.3 billion deeper."
Leaving the grim reality of state finances, we turn to our "Dumb Crooks" file to learn about the burglar who got drunk and called police for help after he couldn't find his way out of the house. Yes, way.
"John Finch,44, spent three days inside the home in Brandywine, Delaware, where he helped himself to the owner's drinks cabinet. Having knocked back two bottles of whiskey and several bottles of gin he was so drunk he couldn't find his way back out the house."
"He said she was too drunk to clamber back out of the
window he had used to gain
entry. Police who arrived at the scene ran a background
check that revealed
that he had a warrant for his arrest stemming from
a burglary of the SAME home
back in April."