California’s unprecedented economic growth and expansion during the 1990s overshadowed an equally unprecedented expansion in government spending.
However, with the bursting of the bubble, tax revenues dried up, while government spending remained fixed at historically high levels. Rather than cutting spending, Gov. Gray Davis and the Legislature turned a blind eye to the problem, and presided over a budget deficit of $34.8 billion, the largest ever in California. This fiscal misconduct eventually led to Davis’ recall as well as the Legislature’s lowest approval ratings in history.
Today, we are on the verge of witnessing monumental reforms to California’s political and governmental systems. Gov. Arnold Schwarzenegger’s challenge to the Legislature to work with him to achieve desperately needed reforms to our political system, our educational system and our system of spending and budgeting has not been answered.
It appears increasingly likely the reforms will be taken directly to the people in a special election.
The New Majority has been working hard to support Schwarzenegger’s reform agenda. We have donated and raised nearly $4 million to help qualify a package of initiatives for a special election later this year. We are proud to have been an integral part of the process, and of the response by Californians whose signatures recently were submitted to county registrars to qualify the reform package and place it before the voters.
Initiatives addressing the areas of budget reform, redistricting, tenure reform, merit pay and paycheck protection have all gathered enough signatures and will qualify in the event the governor calls for the special election.
All of these initiatives are important, but budget reform would carry with it sweeping changes across the board, affecting nearly all sectors of government. It is no wonder that there have been numerous newspaper headlines and stories on the subject of budget reform. Unfortunately, some have been misleading and fraught with inaccuracies. This has caused some question about the true nature of the budget reform solution endorsed by the governor.
Here are key points of the governor’s budget reform initiative. I think you will agree that it is a significant reform package that is built upon principles of soundness and accountability:
Provides the governor midyear budget cutting authority to bring expenditures in line with spending. Everything is on the table, and at the discretion of the governor.
Provides for the continuation of the previous year’s budget if the Legislature fails to pass a budget on time,minus any autopilot increases.
Eliminates Proposition 98’s maintenance factor and ends the practice of automatically ratcheting-up Prop 98 funding. Addresses California’s structural imbalance and brings long-term spending in line with revenue.
Provides for capping state spending at no more than a three-year rolling average of revenue,preventing spending to spike like it did during the high-tech boom.
Targets surplus revenues to debt reduction and infrastructure investment.
Gives long-term protection to transportation and infrastructure investment.
These reforms, if passed, will fundamentally change the course of California’s government and political system.
Thus, these reforms will not be easily achieved.
Their opponents, led by the powerful public employee unions, will fight to defeat them. But these reforms are too important to the future of California and that is why the New Majority has worked so hard to get these initiatives on the ballot and why we will work equally as diligently to ensure they pass. To learn more, visit www.citizenstosaveca.org.
Todd Theodora
Political Affairs Committee Chairman
The New Majority
The U.S. no longer is the leader in many fields where we once reigned supreme. Electronics? Fuggitaboutit! Steel? No way! Manufacturing? Are you kidding?
The Chevrolet Silverado and GMC Sierra had the lowest ratings in crash tests for 2005 pickup trucks. In rollover tests, the Ford Ranger fared worst among pickups with four-wheel drive.
I recently drove a GM rental car in Hawaii and couldn’t believe what junk I was hauling my family around in! Didn’t they just shake up their management, again?
On TV the other night there was a major hoopla over the interior of the super new Airbus due out for passenger service next year. It’s gorgeous! Boeing just continues to roll out trouble.
What are we good at? Hiring illegal aliens at cut rates and making inferior products. Germany pays the highest factory wages in the world and still is able to compete just fine. The euro is skyrocketing against the dollar.
Schools in California, run by union-supported morons, try to convince us it’s the governor’s fault that Johnny (and his teacher) can’t read.
It also seems clear,U.S. companies can’t compete with onerous government restraints. To make matters worse, our business managers add salt to the wound, “cheating” in any way they can.
I’m fine. I turn 60 this year. But what about my 7-year-old boy (yeah, that’s right, he’s 7)? What kind of a country is he going to inherit? And what are we going to do about it?
Barry M. Gold
Irvine
