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The Politics of California's Budget
Fiasco:
Focus on Democracy
The California state budget,
which is supposed to be sent to the Governor by June 15 every year and
then signed by the Governor, wasn't sent to the Governor this year until
September 19 and not signed until September 23. Not only was the budget
signed over three months late, but the agreed-upon budget was awful and
mostly likely will get only worse. Literally, before the signatures on
the budget bill were dry, the budget was already $1 billion (5.4%) below
assumed revenues and expected to be $5 billion short for the year. This
increases the likelihood of unilateral mid-year cuts, a major cause for
concern for all education stakeholders—administrators, faculty,
classified, and students.
California got
into this mess because this year's budget was balanced through smoke and
mirrors. The budget was balanced by $10 billion worth of cuts,
accounting gimmicks like speeding up tax collections and prepayment of
fees for LLCs, and borrowing from future lottery receipts. What was
missing, of course, were new sources of revenues. According to the
Community College Chancellor's Office, "growth funding provided in the
state budget is clearly insufficient to meet the surging demand." The
California Federation of Teachers (CFT) pushed hard for "tax the rich"
sources of revenues, but failed to convince
any
Republicans that the increase on the wealthiest Californians was a
better solution than the billions of dollars' worth of cuts to already
underfunded education, social services, and health care. While the
budget lets the rich off scott-free, the young, the poor, and the
elderly suffer.
The problem in
California is not simply a fiscal one, but in many ways a political one.
The state is just about ungovernable, due to the constitutional
requirement that it takes a 2/3 vote to pass a budget. This requirement
subverts democracy. Anyone who has taken an introductory civics course
knows that in a democracy the "majority rules and the minority has
rights." The 2/3 requirement, however, stands this fundamental principle
on its head and allows for the "tyranny of the minority." This situation
is undemocratic, unconscionable, and unacceptable. California is one of
only two states that require a 2/3 majority to pass a budget.
Recent budget
negotiations demonstrate this point. The Democratic majority in the
legislature yielded and yielded and yielded, while the Republican
minority "just said no" to any reasonable tax increases. The longer the
process took, the more pressure was placed on the majority to cave in to
the minority's demands, until finally the majority just gave up in order
to get a budget passed. Truly, if the state were governed
democratically, it would have been the minority yielding to the
majority, but with the 2/3 requirement, the opposite occurred.
There can be
no progress toward fiscal reform until there is first political reform.
The 2/3 requirement must be eliminated and replaced by a simple
majority. The sooner this happens the better for all Californians.
Already, the CFT and its allies are moving forward on a ballot
proposition for next year which would, if passed, eliminate the 2/3
requirement. Our local should be very involved in this campaign the way
we were involved on the Prop. 92 campaign last fall. The fiscal health
of the state and education's future demand no less.
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