The California Budget stalemate, which has continued on for the last several years, will continue on into the new term.  With the gerrymandered districts holding the line for the Republican elected officials, the California Democratic Party needs to stop trying to “think outside the box” with legislative electoral takeovers and changes to the 2/3 rule and finally consider the easiest, most obvious solution that has been staring them in the face since day one:  cut spending.

The Democratic Party in California gambled when they began to drastically increase spending while the Real Estate bubble began to build in the state.  Everyone with half a brain knew that the real estate market would face some sort of “correction” eventually (though I doubt many expected it to be the magnitude it has been).  They were hoping that the tax revenue would continue to increase to meet their needs in spending.  If it had worked and the California economy continued to boom, they probably would have thumbed their noses at the Republicans.  The GOP on the other hand, recommended spending caps and rainy day funds– two solutions that would have softened the blow on the market correction.  This budget year has been an ample opportunity for the Republicans to say “I told you so”.

The Democratic Party is starting to look desperate.  They are calling the current budget situation a crisis, calling the Republicans cowards and obstructionists and still refuse to admit that their budget is too big.  The GOP has expected this to happen from the moment the Democratic Party started increasing spending beyond reasonable levels.  The Republicans don’t view this situation as a crisis, but rather the predictabe result when California lives from paycheck to paycheck.

The Democrats are losing the budget battle.  Continuing to hold out against Republican demands only inflicts further hurts on Democrat constituents.  Sure, one may argue that elected officials represent all Californians, but I haven’t seen an Assemblyperson or Senator receive 100% of their district’s votes yet.  The political reality is that elected officials are supported by certain voters.  Public sector unionized employees tend to vote Democrat while homeowners and private service sector employees tend to vote Republican.  The people that are hurting while the Legislature fails to pass a balanced budget are the public sector employees who may not get paid when cash runs out.  Private sector employees don’t receive funding from the government and feel no major impact as the budget stalemate continues.

Republicans have kept their promise to their constituents.  Taxes have been held to previous levels and the Vehicle License Fee was rolled back in 2003 after the election of Arnold Schwarzenegger.  The GOP has no problem continuing the stalemate.

Solution: Cut Spending For Now

The California Democratic Party needs to come to grips with the state’s budget reality.  The tax rate is the highest it is going to be for now.  If they truly cared about their constituents, they would balance the budget to get the state back to business as usual and try to pass Steinberg’s tax increases on the next election ballot.  Running with a budget in the red is irresponsible.  Balancing the budget for now is not giving up the fight or conceding to the GOP, it is being reasonable and responsible to their constituents who need to know where the budget will be by the end of the year.

Assembly Republicans Respond to the Special Session Budget Proposal

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