How to fix California

California state budget, Wolverton, cagle, Brown, May 20, 2013June 2, 2013

By John Seiler

Our friend Steven Greenhut has co-written, with William Osborne of the U-T San Diego, a prescription for fixing California. A couple of paragraphs:

“California, the ninth-largest economy in the world, is a profoundly troubled state. It remains badly broken in many fundamental ways even as the national economy slowly but steadily emerges from the Great Recession and as cash from November’s voter-approved tax hikes pours into the state treasury.

“The tax increases have, to be sure, provided short-term budgetary relief, even a multibillion-dollar surplus, after years of multibillion-dollar deficits that were papered over with phony economic assumptions, accounting gimmicks, massive borrowing and raids on the treasuries of school districts and other local governments. Indeed, state Controller John Chiang says that April was the first month in six years in which the state was able to pay its bills without raiding internal funds.

“This flood of new cash has cast a glow over Sacramento — a giddiness that all is well again in the Golden State.

“But compelling arguments can be made that the tax hikes were the worst thing that could have happened. First, they did nothing to provide the broader structural economic reform needed to prevent severe long-term financial distress and the degradation of basic public services that would go along with it. Second, the income tax hikes, which targeted the wealthy, only worsened California’s vulnerability to destructive boom-and-bust budgeting should an economic downturn strike again. And third, the false sense of financial security that they spawned is leading the Legislature to continue to blithely ignore the reality and the severity of many core problems.

“Consider:”

For the rest click here….

 

13 comments

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  1. Paul
    Paul 2 June, 2013, 19:50

    Stop electing communist liberal progressive democrats into office and that will fix the problem…plain and simple!!!

    Reply this comment
  2. Queeg
    Queeg 2 June, 2013, 20:49

    Paul your stareeeee eyed….Republicans supported Prop 1A as I recall, Mondo as Lt. Governor and a pretty amazing enviro nightmare law…via Herr Arnold.

    Reply this comment
  3. Sean Morham
    Sean Morham 3 June, 2013, 08:30

    Does anyone know what California state plates mean when they say “cal.dmv.gov” ..printed on bottom middle of the plates? Is that a different registration?

    Reply this comment
  4. Queeg
    Queeg 3 June, 2013, 08:36

    Sounds sinister!

    Reply this comment
  5. Sean Morham
    Sean Morham 3 June, 2013, 08:58

    Saw on newish white Mercedes, same Jeep 4X4, brand new Chrysler 300(black, tricked out wheels, nice car).

    Reply this comment
  6. SkippingDog
    SkippingDog 3 June, 2013, 12:26

    The best way to fix California would be to do away with both Prop 13 and the initiative process. Those two basic changes would restore sanity to our legislative and budgetary decisions.

    Reply this comment
  7. Ulysses Uhaul
    Ulysses Uhaul 3 June, 2013, 14:54

    Skippeeeee. Did you help write the Communist Manifesto?

    Reply this comment
  8. Donkey
    Donkey 3 June, 2013, 15:44

    To fix California we first need to cut all public employee salaries by 30%, and allow no public employee more than $90,000 a year regardless of their title held. Cut pensions to no more than $50,000 a year, with no perks, Drop, airtime, or COLA’s. Cut benefits 50%, no more than two weeks paid vacation, no sick days, personal days, or cash in exchange.

    The remidies sugested by people like Skdog are only self-serving, in his mind he has earned a better retirement than the people he worked for, classic sociopath narcissistic mindset. 🙂

    Reply this comment
  9. SkippingDog
    SkippingDog 4 June, 2013, 12:24

    Not at all, Donk. My suggestions reflect a period when California was well governed and properly financed – pre Prop 13. It’s also clearly apparent that our initiative process has been hijacked by organizations that use it for their own financial enrichment, whether those be the Prop 13 people and slumlord Howard Jarvis or the unions you hate so much.

    Eliminating the initiative process and returning our state to a republican form of government would be an excellent way to restore the sanity you claim we’ve lost.

    Reply this comment
  10. Donkey
    Donkey 4 June, 2013, 13:45

    The only way to cut the cost of government is to cut what we pay for it. Considering that over 90% of all tax dollars goes for pay, pensions, and benefits today, cutting all is the best solution. 🙂

    Reply this comment
  11. SkippingDog
    SkippingDog 4 June, 2013, 20:09

    Your old saw about “starving the beast” has repeatedly proven itself unworkable and unrealistic. The only thing you get by cutting government revenue is higher annual deficits and higher long-term debt.

    Government is a service provider, and the primary costs in any service industry are for wages and benefits. Time for you to get a clue.

    Reply this comment
  12. Donkey
    Donkey 5 June, 2013, 05:33

    Where did you learn math Skdog? Cutting the cost of the RAGWUS members leaves more money for more “services” and would lower the burden on the private sector taxpayer, both present and future. You are clueless about the worth of the bureaucrat, being one yourself you have no ability to identify with reality on this topic. The typical RAGWUS member is both overpaid, underworked,and over benefited all at once. The only thing unworkable to this point is governmement. 🙂

    Reply this comment
  13. SkippingDog
    SkippingDog 5 June, 2013, 10:17

    The services demanded by the vast majority of the public do not decrease merely because you attempt to cut funding for them. Your austerity proposals have a small and limited audience, since most people still value the services they receive from their governments.

    We’ve seen exactly the same problem all the way back to your idol Ronald Reagan. He was able to cut taxes, but he continued spending and put us on the track for the large national debt we have today. At least when he was governor of California, he hadn’t taken up “voodoo economics” yet and knew he needed to raise revenues (taxes) to pay for the services his constituents elected him to provide.

    Reply this comment

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