Cut, Don’t Tax: Now is not the time to pile new expenses on Californians
November 20th, 2008
State Senator Dave Cogdill
by Senator Dave Cogdill (R – Modesto)
The global financial crisis — including the federal bailout of the national banking system — has understandably dominated the news in recent weeks.
In Sacramento, however, our attention is focused on the state’s own troubled finances, only some of which can be traced to the mortgage meltdown and other factors that underpin the worldwide fiscal troubles.
The specter of fiscal disaster has loomed large in California’s budget wars for years, if not decades. Yet time after time, warnings were ignored and budgets were cobbled together with rosy projections and unrealistic hopes, when what was needed were sound, albeit difficult, financial decisions.
Our primary problem in California is that the state continues to spend too much money on a government that is far too large. It was difficult to sustain in an economy that wasn’t faltering. Now that we are teetering on the brink of widespread recession, the time has come for Sacramento to get serious about reforming its profligate ways once and for all.
As Senate Republican leader, I’m meeting regularly with the governor and the other legislative principals in order to right our course and stabilize California’s finances. We are working together to do so despite our political differences.
Audit All Spending
In the context of the broader economic realities overshadowing us, I am hopeful that the warnings Republicans have been sounding for several years will now be heeded.
At the federal level, policymakers on both sides of the aisle seem to understand that government needs to take steps to revitalize the economy rather than slow it down further, as raising taxes surely would.
The idea of raising taxes to solve our budget woes makes even less sense now than it did last summer, which is why Republicans in the Legislature continue to remain firm in our opposition to the Democrats’ go-to “solution.”
California’s budget outlook is worsening because revenues have already fallen $11.2 billion below expectations.
Experience has shown us that raising taxes on paper does not equal real cash in the bank, and current circumstances clearly tell us that taxpayers are struggling to stay in their homes and make ends meet. Adding to their expenses by increasing taxes is the exact wrong answer, now more than ever.
We need to conduct a full audit of state spending and build accountability into future state budgets. California’s revenues may be falling short of expectations lately, but they are still more than sufficient to adequately fund the state’s priorities.
Scrap Some Programs
When Gov. Arnold Schwarzenegger was elected in 2003, he talked about blowing up the boxes of state government — getting rid of nonessential programs, commissions and other forms of bureaucratic excess.
Now would be an ideal time to revisit the proposals of the California Performance Review, initiated by the governor to streamline the operations of state government.
The nonpartisan legislative analyst has also made a number of constructive proposals to do the same.
First and foremost, California’s tax dollars need to be allocated thoughtfully and efficiently, focusing on the most critical needs of our state. All programs should be evaluated, even if interest groups in and out of government consider them sacred cows.
Our actions must be taken with consideration paid to the broader economic conditions in California and beyond. We must find ways to increase revenues through economic growth and to live within our means.
Punishing working Californians for Sacramento’s profligacy was never a good idea, but in light of the economic pressures bearing down on today’s taxpayers, raising taxes would be foolish and irresponsible.
We are no longer dealing with an ambiguous looming threat. The chickens have come home to roost.
The good news is that the gimmicks have been exhausted, leaving my colleagues and me with no choice but to tackle California’s finances with honest approaches.
Dave Cogdill, R-Modesto, is the Republican leader in the state Senate.
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