A Los Angeles Times article today discusses two propositions that will appear on the state’s May 19 special election ballot, and which, if passed, would help California’s deep deficit troubles. It does a good job explaining the brouhaha surrounding the propositions (which would divert money from early childhood development and mental health programs to help the state balance its budget), while explaining a bigger picture of voter trends.
The article engages in a certain amount of heartstring yanking. If the propositions pass, as reporter Eric Bailey puts it, they would “yank more than $2 billion from a pair of popular programs that help some of the state’s most vulnerable: young children and the mentally ill.” Ouch. No one wants to be involved in doing that.
To its credit, the article goes further and successfully explains how these types of programs—voted into place by the public in order to receive specific funding (“ballot-box budgeting”)—can also pose a more general problem for a state with long-running budget problems. Here’s Bailey:
Though they often complain that statehouse lawmakers spend like drunken sailors, the state’s voters have in recent decades repeatedly performed in much the same manner. Time and again they have approved propositions that critics say have combined to straitjacket the state’s budgetary process.
Bailey creates numerate context—also stating that the state’s annual debt to pay back money borrowed for infrastructure projects “has soared to 6 percent of the budget”; that in the last thirty years, voters have approved “two dozen ballot measures telling lawmakers how to spend money”; and that California’s bond rating on Wall street is “the worst among all 50 states”—all of which helps frame the propositions with voting trends and budgetary constraints.
But for one, I’d add that Bailey would have done well to not only focus on what the propositions mean (and why they have emotional currency), but also to take a deeper stab at how the money would be used if they were to pass. It also seems important to mention other, similar propositions that will appear on the special election ballot—those also intended to fill up holes in the state budget. There are four others, including one that would let the state borrow $5 billion against future lottery profits (check here for the San Francisco Chronicle’s editorial endorsing all six). The governor and other supporters have been pitching all six as a bundle, and have stressed the importance of passing all of them. An article about Propositions 1D and 1E (the two that the LAT story discusses) should mention that as part of the bigger picture.
Or, at least pose the questions that the LAT’s Nick Goldberg asked in an interesting state budget Q&A that the paper recently conducted with Gov. Schwarzenegger and four other California officials. Schwarzenegger had stated: “In order to bring our economy back we have to bring our budget back to have enough money to pay for the programs I think they all have to be voted on ‘yes,’ and they all have to pass.” Goldberg responded by asking: “Explain what the process will be. What happens if one of these [propositions] goes down? The whole deal collapses? That piece of the deal collapses?” These are questions that may not yet have direct answers (Schwarzenegger certainly didn’t answer them directly), but it’s still important to pose them, to remind readers of the interwoven budgetary process, and to discourage a tunnel-vision focus on measures whose popular storylines afford them more attention.



When my wife’s employer found itself in trouble, it took two simple steps to remedy its financial problems: they cut 10% of their workforce (primarily through attrition and buyouts), and cut all employees salaries by 8%.
Granted, they didn’t have the ability to simply force their customers (through the threat of jail) to pay more for the products as California is doing, but if business can make these kinds of moves to stem the tide of red ink, why cant local and state governments?
Instead what we get, in California’s case, is just the same old tax and spend; pushing the difficult decisions off until tomorrow and selling assets that once gone are no longer productive entities for the state.
#1 Posted by Mike H, CJR on Mon 20 Apr 2009 at 03:13 PM
Your wife's private employer is not a state government, charged with providing vital and important public services such as policing, prisons, parks, highway maintenance, etc.
California's main problem is, indeed, its prison system - massive, ineffective and staffed by ridiculously-overpaid guards whose union basically owns state government.
But it's really only a symptom of the broader problem: Californians want the best of everything, but don't want to pay anything for it.
#2 Posted by Travis Mason-Bushman, CJR on Tue 21 Apr 2009 at 03:27 PM
Another example: state parks.
Last year, the Governator proposed to mothball about 20% of the state park system, saving $9 million.
Californians rose up in outrage and forced Arnold to turn girly-man and run far, far away from that proposal.
Californians didn't propose any new revenue sources for the state parks. But they sure knew they didn't want any parks closed.
#3 Posted by Travis Mason-Bushman, CJR on Tue 21 Apr 2009 at 03:31 PM
Travis ... sorry guy, but that’s a load of bull. Every state employee in California is partial to blame ... no deserves any more of the share than the other. They all have disproportionally generous pensions and salaries and it’s not just the California DOC.
Its not that the voters want it all, its that the employees of the state have become such a monolithic force in California, that they now have the ability to act as a unit and manipulate the electoral process and the budget.
There is no reason that every state employee couldn’t take a 10% pay cut and that all staffs be trimmed 5%, you can always do the same with less.
#4 Posted by Mike H, CJR on Tue 21 Apr 2009 at 03:41 PM
"You can always do the same with less."
Really now. So you're in favor of a 95% cut in the Department of Defense budget, correct? After all, we can always do the same with less.
Do I really need to explain how your statement violates logical reality?
Seriously, is this what I can expect from the quality of comments on CJR?
#5 Posted by Travis Mason-Bushman, CJR on Tue 21 Apr 2009 at 05:44 PM
"Really now. So you're in favor of a 95% cut in the Department of Defense budget, correct? After all, we can always do the same with less."
No, but a 5% cut would certainly not be out of the question.
Nice straw man though …. what else would I expect from such a Wikidiot.
I realize that you have probably never worked a real day in your entire life, but cutbacks tend to make the remaining workers more productive, if for no other reason than they don’t want to be next.
#6 Posted by Mike H, CJR on Tue 21 Apr 2009 at 08:29 PM
It's not a straw man to respond to a meaningless platitude like "we can always do the same with less" with a reductio ad absurdum. If, as you posit, you can do the same with 5% less, why can't you do the same with 50% less? 95% less? Your meaningless platitude doesn't tell us, because... it's a meaningless platitude and not a logical argument or, of course, factual statement.
Your ad-hominems, meanwhile, aren't worthy of response.
#7 Posted by Travis Mason-Bushman, CJR on Wed 22 Apr 2009 at 11:48 AM
You would seem to be a prime example that, at least in the case of our public schools, the same can be done with less.
#8 Posted by Mike H, CJR on Wed 22 Apr 2009 at 07:10 PM
That you cannot even entertain the interdependent ideas that both California’s bloated bureaucracy (and pension system) could provide the same level of service with a marginally reduced staff and compensations shows just truly immature and ignorant you are.
You should wait until you have lived in the real world for a couple years before presenting you opinions with the expectations that they mean more than the ratings of some random skid row schizophrenic.
#9 Posted by Mike H, CJR on Wed 22 Apr 2009 at 07:18 PM
Mike H says, "there is no reason every state employee couldn’t take a 10% pay cut" -- I worked years ago for the UC system and a 10% pay cut for me would have meant eating mac and cheese while I moved to the desert for cheaper rent. I still have friends there who are just this close to the bone, or worse since they own their homes.
I think this is real world enough.
JJ
#10 Posted by JJ, CJR on Fri 24 Apr 2009 at 04:23 AM
JJ, as much as I sympathize with your plight, the decision to not make cuts in public sector is a double whammy on people like me. Not only do I have to figure out how to manage with less as my and my wife’s employer cuts back, but now I have an additional financial stress because of higher taxes and users fees from the government because they wont cut back.
Sacrifice need to be shared by all, not just those that the government deems "wealthy enough" to afford them.
Realistically, a 10% paycut for you means you take on part time work or go from Kraft mac-n-cheese to generic.
#11 Posted by Mike H, CJR on Fri 24 Apr 2009 at 11:22 AM