Usually, the Democrats and the Republicans in the California legislature at least realize the problems that exist with the budget. In past years, the Democrats will propose raising all sorts of taxes knowing they’ll only get a little of what they want (with a Republican governor); the Republicans will say there won’t be any new taxes but will know they’ll give a little.
This year is going to be different. The Democrats are anything but united according to this report from Dan Walters of the Sacramento Bee. Senate Democrats want to raise taxes. Assembly Democrats want to borrow their way out of the $19 billion deficit. The Senate and Assembly Democrats are not in agreement at this point.
There are major problems with both Democratic proposals. Attorney General and Democratic candidate for governor Jerry Brown has said the borrowing proposal probably violates a balanced budget measure passed in 2004. Additionally, the Assembly plan contains an oil severance tax that supposedly could pass by a simple majority vote (tax increases require a 2/3 vote under the California constitution). That would almost certainly be challenged in the California courts.
Meanwhile, the Senate proposal has lots of new taxes, and shifts major programs to local government…without funding the programs. This proposal has no chance of winning Republican votes (a budget requires a 2/3 vote, necessitating some Republican support) and no chance of being signed by Governor Schwarzenegger.
It’s just another episode of the unstoppable force meeting the immovable object.
Tags: 2010CalBudget