California enacted Proposition 13 in 1978 in order to limit taxation on it’s people.  At the heart of it’s purpose was that lawmakers, in performing their fiduciary responsibility to their constituents would only increase the burden on them at such a time when the need for further revenue was so great that 2/3 of the Legislature supported it.  Thursday, the California Democrats will try to violate the spirit of that law by passing a budget proposal they claim will only require a simple majority (50% plus 1) to pass.

Speaker Karen Bass gives her words on the necessity of the proposal below:

Among her comments, “we will do it with or without [the Republicans]“.

This mentality violates the very nature of negotiation.  The purpose of Prop 13 is that the GOP must be with you before a decision of such magnitude can be made.

The Sacramento Bee posted a breakdown of the Speaker’s plan:

• The state sales tax will rise three-quarters of a percent. Total in new taxes: $4.9 billion through the 2009-10 fiscal year.
• All residents will pay an additional 2.5 percent on their income tax bills. So if you owed the state $1,000, you would now owe $25 more. Total in new taxes: $1.75 billion through the 2009-10 fiscal year.
• California would implement an oil severance tax — levied at 9.9 percent — on all oil extracted from the ground in the state. Total in new taxes: $845 million through the 2009-10 fiscal year.
• The current gas sales and excise taxes would be eliminated and replaced with higher gas “fees.” The new gas fee would be 13.5 cents per gallon higher than users at the pump currently pay. The new funds would be earmarked for transportation spending

Speaker Bass and President Pro Tem Steinberg have lost their sense of ethical behavior when faced with the difficult task of compromise.  They have searched for every other way to avoid doing what is necessary for effective governing (which Steinberg claims he wants to do) rather than compromise with the Republicans.  They are proposing a tax increase vote, proposing ACA 4 which will allow them to pass unbalanced budgets and now they have resorted to cheating the citizens of California through complicated budget loophole assumptions.

Perhaps the Democrats feel justified.  The Republicans have roundly rejected any attempt to increase taxes and have requested a cut to the major safety net programs that the Democratic Party holds dear.  They have cast out their Governor for compromising and have contributed to stalemate.  But perhaps the Democrats themselves are to blame for these problems.

Below is a report showing the budgets approved by the Democratic Majority for the last 9 years.  All have been a deficit.

Conclusion:  Arnold, now is your chance to prove you stand for something!

If this budget is allowed to be approved in session Thursday, there will and should be a challenge in court.  Specifically, the “swap” of gasoline taxes and income taxes probably defies the spirit and letter of Proposition 13.  Whether or not it passes, it is clear that Bass and Steinberg have lost their concern for the rule of law, ethics or fair play in the effort to please the Union special interest through budget gimmicks.

Governor Schwarzenegger is the wild card in the mix.  He has leaned left to right to left again over the last two years.  Now is his great opportunity to prove he truly cares about the long term health of the State he loves so much by vetoing this action.  When times got tough, will he be remembered as the Governor who stood up for sound fiscal policy or the one who was railroaded by the Democrats into another set of budget gimmicks?  Only time will tell.