Gov. Brown signs another fraudulent budget

June 28, 2012

By John Seiler

When he was inaugurated on Jan. 3, 2011, Gov. Jerry Brown solemnly promised in his address to the people of California:

“First, speak the truth. No more smoke and mirrors on the budget. No empty promises.”

Instead yesterday, for the second straight year, he led the Legislature in a drive-by attack on Californians by signing a fraudulent budget. The fictional budget, for fiscal year 2012-13, which begins on July 1, also shows that voters were misled into thinking that passage of Proposition 25 in 2010, majority vote on the budget, would lead to more sensible budgets.

Prop. 25 was supposed to hold legislators’ feet to the fire by canceling their pay if they didn’t pass a balanced budget by June 15. But after their pay briefly was suspended by Controller John Chiang for their delinquency in June 2011, a judge threw out that part of Prop. 25.

So, all that remains is the part that the powerful government-worker unions wanted when they hoodwinked voters into approving Prop. 25: majority vote to pass the budget instead of two-thirds, meaning minority Republicans were cut out of all budget discussions.

And because there was no penalty for tardiness, the Legislature passed the budget two weeks late.

The biggest flim-flam in the budget is that it assumes voters will pass Brown’s $8.5 billion tax increase on the November ballot. That’s like taking out a mortgage on a house assuming you’ll win the lottery. If you did that, you would go to jail for lying to lenders. But legislators do it and don’t even get its pay docked.

Phony cuts

The second flim-flim is that there are “cuts” in the budget. Actually, it’s supposed to cost $92 billion, assuming the tax increase passes. But that’s $6 billion more than the just-ending fiscal 2011-12 budget. So, if we just kept the previous year’s budget, there would be no need for the tax increases. Instead, spending will rise by 7 percent. It’s such profligate spending that got the state into trouble in the first place — and that happens every time the state enjoys even a modest recovery.

The reason why was explained yesterday at Chapman University’s economic forecast, held at The Hilton in Costa Mesa, which I attended. One speaker was Esmael Adibi, director of the A. Gary Anderson Center for Economic Research at the school. Adibi said that politicians don’t save money even in good times because then they don’t get the credit for giving it to the special interest groups that brought them into office.

By contrast, if money is saved, it just gets spent by their successors, who then get the credit for giving the funds to their special interest groups. So why save money? This create the vicious tax-and-spend cycle that especially plagues spendthrift states like California.

An especially cruel sham is that the budget includes a $250 million cut in tuition to University of California and Cal State students should the tax increase fail. That’s a shameless bribe to students to get them to vote for the tax increase.

It’s also a fraud perpetrated on the kids because the $8.5 billion tax increase will kill the jobs they otherwise would have gotten when they graduated. So, for $250 million, the kids strap an $8.5 billion tax increase to their young lives. That is, they’ll get just 3 percent back for themselves. Now you know why even university students in California graduate innumerate. That way they won’t figure out how the state is ripping them off.

Repelling doctors

And according to the Orange County Register:

“A third trailer bill could force doctors who treat patients eligible for both Medi-Cal and Medicare to accept low reimbursement rates. That bill enrolls 627,000 poor, elderly and disabled Californians in Orange and seven other counties in managed care plans, to save the state money on their health care.”

That only will force underpaid doctors to leave the profession, or move from this diseased state to a place of freedom. Effectively, that part of the bill enslaves the doctors in another socialized medicine scheme.

As this year plays out, the governor and Legislature will have to adjust the numbers to deal with fiscal reality. If the economy begins slowing, then the budget legerdemain will be revealed sooner than otherwise. In sum, the new budget is another installment of the state’s long running budget illusion circus.

 

 

29 comments

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  1. Ulysses Uhaul
    Ulysses Uhaul 28 June, 2012, 06:29

    Thd people voted for Browncare….get over it!

    Reply this comment
  2. Donkey
    Donkey 28 June, 2012, 08:02

    THe people want responsible government, what we have is fantasy RAGWUS feeding fools, playing a game that is going to end very badly. 🙂

    Reply this comment
  3. Ulysses Uhaul
    Ulysses Uhaul 28 June, 2012, 08:17

    Your supreme court made you a forever taxed urban serf…ac ept the law…

    Reply this comment
  4. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 June, 2012, 08:26

    FRAUD!

    The best/funniest part is Clowns budget RELIES on tax hikes that have not and will not be approved.

    Oh how I love this crazy mixed up state of the $200K per year GED educated gov employee 🙂

    Reply this comment
  5. Ulysses Uhaul
    Ulysses Uhaul 28 June, 2012, 08:28

    Rex are you educated somewhere?

    Reply this comment
  6. Ted Steele, The Decider
    Ted Steele, The Decider 28 June, 2012, 09:01

    Mr. Pack and ship—- Poor poodle has no idea whats about to come down on his head!

    ……….be easy on him today—- he is frustrated with Chief Justice Roberts !!

    Oh my.

    Reply this comment
  7. Ted Steele, The Decider
    Ted Steele, The Decider 28 June, 2012, 09:02

    ….and what was the Poodle’s prediction on health care? Hmmmmm

    another prediction loss? 0 for 7 now?

    Hmmmmmmmmmm….

    Reply this comment
  8. Dyspeptic
    Dyspeptic 28 June, 2012, 09:16

    “Your supreme court made you a forever taxed urban serf…ac ept the law…”

    Only a craven and cowardly fool accepts their servitude! Those of us who chaff under the yoke of exploitation will continue to pitch a fit, cause a ruckus and make our displeasure known to the exploiters of the ruling class and there parasitic minions.

    Why is it that every time I visit this website I am confronted by yet more evidence of the pervasive stupidity of Kalifornia voters? This time it’s Prop. 25. What a chump deal that was. How big a fool do you have to be to trust an initiative put on the ballot by the government union puppet masters? It’s tantamount to a chicken trusting Col. Sanders except the average chicken has more sense than most Kalifornia voters.

    You know the mantra: IT’S THE STUPID VOTERS STUPID!

    Reply this comment
  9. Ulysses Uhaul
    Ulysses Uhaul 28 June, 2012, 09:20

    Touchie…touchie

    Let’s come together….you open your chunky purse and we distribute to the kids and poor…supreme court concurs…..they are wise and just!

    Reply this comment
  10. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 June, 2012, 09:27

    I predicted Obamacare would be upheld, so once again the Rotti is CORRECT 🙂

    BTW- John Seiler, when ru going to stop Teddy from posting under is sock puppet accounts 😉

    Reply this comment
  11. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 June, 2012, 09:29

    I wonder what Clown will do when his pension tax FAILS and the welfare queens rise up b/c their welfare check is going to a 50 year old GED educated cop receiving a $300K per year pension 😉

    Reply this comment
  12. Ted Steele, The Decider
    Ted Steele, The Decider 28 June, 2012, 09:40

    LOL– the Poodle remains 0 for 7 !!!

    Trying to wiggle out of your infamous predictions?

    Sock puppets indeed!

    Another great day for America!

    Soon to be 0 for 8 !

    This is just too easy !

    Reply this comment
  13. Ulysses Uhaul
    Ulysses Uhaul 28 June, 2012, 09:47

    Browncare a reality….the tax is popular….very popular…supreme court agrees.

    Reply this comment
  14. Ted Steele, The Decider
    Ted Steele, The Decider 28 June, 2012, 09:51

    Uhaul to the head of the class !

    Reply this comment
  15. Dyspeptic
    Dyspeptic 28 June, 2012, 10:18

    Yes, let’s put the dunces at the head of the class. It’s good for their self esteem 🙂

    Reply this comment
  16. Donkey
    Donkey 28 June, 2012, 10:27

    Dyspeptic, the dunces are running the government!! 🙂

    Reply this comment
  17. Ulysses Uhaul
    Ulysses Uhaul 28 June, 2012, 10:37

    Get out your chunkie euro shoulder purses for revenue picking!

    Reply this comment
  18. Donkey
    Donkey 28 June, 2012, 10:39

    It is a satchel UH!! 🙂

    Reply this comment
  19. Ted Steele, The Decider
    Ted Steele, The Decider 28 June, 2012, 11:04

    LOL at the Duncey ! God bless him !!

    Reply this comment
  20. stevefromsacto
    stevefromsacto 28 June, 2012, 12:34

    Again I say, Amen!

    Overspending isn’t California’s problem

    Face it: More budget cuts won’t pay for everything the state needs.

    SACRAMENTO — It’s budget time in Sacramento, so conservative politicians are dusting off an old shop-worn mantra.

    All together: We don’t have a revenue problem, folks, we have a spending problem.

    OK, there is some truth to that.

    Sacramento, for example, still is spending way too much money on former Gov. Arnold Schwarzenegger’s showboating car tax cut.

    Yes, that crowd-pleasing slash in the vehicle license fee — which had existed for many decades without a public fuss — resulted in a $6-billion annual spending burden on the state treasury. That’s because the car tax revenue had gone to local governments. When Schwarzenegger cut it in 2003, he kept sending an equivalent amount of money to the locals anyway.

    Here’s another spending waste: Trying to execute murderers. I’m all in favor of executing these scum, if only we’d do it.

    But we’ve executed a mere 13 in the last 34 years. Meanwhile, according to a major study last year, it costs an extra $184 million a year to house condemned killers on death row, compared to letting them rot in a hole without the possibility of parole. (There’ll be an initiative on the November ballot to end capital punishment in California.)

    Here’s one more example: Paying off Schwarzenegger’s “economic recovery bonds.”

    You may remember. He charmed the Legislature and voters in 2004 into borrowing $15 billion to balance that year’s budget. We’re still paying off those bonds — at double the sticker price, including interest.

    In the new budget, that debt payment will amount to $1.3 billion.

    But regardless of these nutty expenditures, it would be ludicrous to claim that spending is out of control in Sacramento. During the dot-com boom, yes. Now, hardly.

    As a proportion of Californians’ personal income, total state spending will be only slightly higher in the new budget than it was during Ronald Reagan’s final year as governor in 1974. Spending out of the general fund — the state’s deficit-plagued main cash box — will be slightly lower than under Reagan.

    Legislators and governors have been whacking away.

    Compared with the economic peak of budget year 2007-08, current general fund spending is down 16%. True, the Legislature shuffled off some of the general fund burden to other funds. Even so, total state spending is down 2%.

    Don’t think they’ve chopped enough? Then you probably don’t have a kid in public school.

    State funding for K-12 schools and community colleges dropped 20% between 2008 and this year, according to the Finance Department.

    Between 2008 and 2011, according to the legislative analyst, 32,000 teaching jobs were eliminated. Almost all districts reduced their school year; one-fifth of them by a full week.

    Art, music, libraries, counseling, tutoring — all cut, if not eliminated.

    Class sizes have increased in all grade levels.

    And if Gov. Jerry Brown’s proposed tax increase is rejected by voters in November, K-12 schools and community colleges will be slashed $5.5 billion more. That would probably mean an even shorter school year.

    Scare tactic? If you believe that, it’s a bad bet.

    The University of California and Cal State University system also would be docked $250 million each if the tax initiative fails.

    What has happened at California’s once-esteemed, formerly affordable public universities is shameful.

    Tuitions over a five-year period rose 73% at UC; 84% at Cal State. Twenty years ago, they were $2,824 at UC; $1,308 at Cal State. Now students are looking at $12,192 and $5,970 respectively — if the taxes pass.

    Over a four-year span, state funding was cut nearly $1 billion annually each at UC and Cal State.

    OK, somebody should put a lid on excessive compensation for chancellors and presidents and other robed mucky-mucks. But they are not what’s breaking the universities.

    Neither are state pensions busting the state, despite the brouhaha.

    Yes, many local governments are straining under the weight of retirement burdens. But they’re not a significant cause of Sacramento’s red ink. Only 2.4% of the general fund will be spent on pension contributions for state employees. Even a 401(k) plan could cost that much.

    Want more spending cuts? How about parks?

    Good luck trying to find a camping spot at your favorite state park this summer. It’s still not clear how many are going to be shuttered for lack of state funds and how many will be rescued by nonprofits and local people. At any rate, many have been allowed to deteriorate.

    But no group has been pounded more than welfare moms and their sick kids, and the low-income aged, blind and disabled.

    One example: The maximum monthly welfare grant for a family of three is $638. Back 23 years ago when Republican George Deukmejian was governor, it was $694. But only about 25% currently receive the maximum grant.

    SSI/SSP — the federal and state subsistence programs for the aged and disabled — has been reduced to the absolute federal minimum. Grants now are around $860 per month. Whenever the feds sent out an increase in recent years, the state tended to pocket it.

    Medi-Cal payments for the care of poor people are the lowest in the nation. Rates are so low that many doctors won’t even treat the poor. Dental and vision care for adults were eliminated in earlier budget cutting.

    Sacramento doesn’t have a spending problem. Its problem is an outdated, roller-coaster tax system that doesn’t generate enough revenue to pay for what California demands and deserves.

    Reply this comment
  21. Hondo
    Hondo 28 June, 2012, 13:22

    This lie is that Kalifornia doesn’t spend enough. That is proved by the FACT that Kali already has some of the highest taxes in the country and they still can’t balance the budget.
    This budget is based on a fraud, based on an unvoted on tax increase (which will pass because few voters in Kali actually pay taxes,they collect taxes,ie, welfare).
    In California in 2009 they instituted huge tax increases and look, more huge deficits. In Illinois they instituted huge tax increases in 2011 and look, huge deficits this year.
    Hondo…..

    Reply this comment
  22. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 June, 2012, 13:41

    John, Katy, Brian -please put an end to the Teddy Steal sock puppet accounts, thank you-the Readership.

    Reply this comment
  23. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 June, 2012, 13:42

    Again I say, Amen!
    Overspending isn’t California’s problem
    Face it: More budget cuts won’t pay for everything the state needs.

    For once Steve is right, we also need to CUT employee pay and benefits, at least 25%-50%.

    Reply this comment
  24. Ulysses Uhaul
    Ulysses Uhaul 28 June, 2012, 14:30

    Wonder…banning speech of the other side eliminates your name calling and delusional conspiracy rants…..you will have little to say but to agree with prennial election losers putting lipstick on a tired elephant!

    Reply this comment
  25. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 June, 2012, 14:55

    John, Brian, Katy- please ban the Teddy sock puppets-thank you, the Readership 😉

    Reply this comment
  26. Ulysses Uhaul
    Ulysses Uhaul 28 June, 2012, 17:03

    We should do lunch. Your so misunderstood!

    Reply this comment
  27. Rex the Wonder Dog!
    Rex the Wonder Dog! 28 June, 2012, 18:18

    John, Brian, Katy- Teddy’s sock puppe still postings-please fix – thank you, the Readership 🙂

    Reply this comment
  28. us citizen
    us citizen 2 July, 2012, 08:36

    NO MORE TAXES in CA! Enough is enough. Stop torturing small business’s! Also get rid of ALL the ILLEGALS. Talk about milking the system. You cant even go anywhere anymore where people actually speak English. We are being invaded by them and no one seems to notice or care. This once great state is now nothing but a “hand me out, entitlement state” and those of us actually paying for all this nonsense are FED UP.

    Reply this comment
  29. Tom Becker
    Tom Becker 3 July, 2012, 06:14

    You will have to pardon me but I’ve given up on this state. I’ve been Kalifornicated for far too long, made a tax target of and clearly am conservative enough that none of what this state does makes any sense. At the very first opportunity I’m outta here. Nevada or Arizona here I come. If the whores in Sacto want to continue their spending binge they are going to be doing it without my money. Oh man I can’t wait for that bankruptcy flush…

    Reply this comment

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