The Plight of the California State Budget Dilemma
15 Billion+ Deficit
Sacramento County Deputy Sheriffs’ Association
James L. Frayne, Legislative Director
August 14, 2008
The attempt of the Governor and the California Legislature to unravel the unfathomable 15 billion plus state budget deficit remains a conundrum. Governor Arnold Schwarzenegger, the Legislative Democrats and Republicans failure to forge a budget agreement to resolve the budget shortfall has again resulted in a “stand off” and “dead end”.

The Governor’s proposed budget of January 15, 2008, with an 11 billion dollar deficit called for an across the board 10% cut for all state programs and, selling the state lottery. Thereafter, the deficit grew to some 24 billion dollars. In February 2008 the Governor called a special legislative budget session to deal with the deficit after a month of meetings and floor sessions, with chewing gum, sealing wax and other innovations they were able to reduce the deficit by 8 billion dollars. Later the deficit grew to its existing 16 billion +++.

Governor Arnold Schwarzenegger, on August 1, 2008, unveiled yet another new budget innovation he hoped would end the legislative “deadlock”. Straying from his pledge not to raise taxes for California residents, he proposed a temporary increase of sales tax by one cent. Other mandates included automatic spending restraints and the authority for the Governor, in mid-year, if the state budget reaches a deficit, to cut state programs. Both Democrats and Republicans (for different reasons) express little enthusiasm for his proposal.

With the shadow of a cash shortage looming to pay state bills, in desperation, the Governor has issued an edict to lay off part-time state employees and other non-essential positions. (effecting approximately 20,000 state workers). Thereafter he signed an order for the balance of some 180,000 state workers to receive only the Federal minimum wage of $6.55 per hour.

When the State budget is finally passed the State would repay employees the loss of their past wages and continue at their present salary. Presently our Constitutional State Officers, along with Legislators and their staffs receive no salaries until the budget is passed. They will be paid back pay and benefits when that occurs. Frustrated by the lack of movement by the Legislature (including his own Republicans) he has indicated he will not sign any legislation until they present him with an acceptable budget!

Meanwhile the Democrats initially proposed raising the tax on the top California wage earners and increasing taxes to corporations and businesses in California, resulting in preserving the existing benefits to education, children, the infirm and public assistance programs. Concurrently, the Republicans have taken a “blood oath” not to raise taxes and contend it’s not an income problem but a spending problem that has created this budget deficit. As always, the major impediments to untangling the enigma of the budget deficit are: politics – power – ego – and money. This not only includes the Governor, Constitutional Officers, and Legislators, but; also corporations, business interests, unions, employers, employees and some 1,000 California lobbyists and another 1,000 that are not required to register, who represent governmental agencies.

Over the years, many learned leaders and enlightened academics, journalists, scholars, and business leaders have made the observation that California – “is so diverse by geography, ethnicity, economics, ecology and sheer size to be ‘ungovernable’”. The proliferation of ballot initiatives coupled with term limits, and the continued population growth has been the result. The continued budget impasse and its perplexities mirror these observations!!

The old adage from centuries past echoes our plight today: “Everyone wants to go to heaven” but “No one wants to die”. Californians want all the niceties and benefits from local, state, and Federal government; however, they want someone else to pay for benefits. For example, if you are single and have never had children – why should you have to pay for schools? If you do not use public transportation, why should you pay tax dollars to support buses, rapid transit, etc. so on and so forth!

Our society, like Mother Nature, to work successfully, every living thing in the chain, trees, insects, animals, weather and natural resources must work in unison for all. If the chain is broken the whole system falters and fails! The Governor, Constitutional officers, Legislature, local government cannot solve this conundrum without all working together for the betterment of all – all for one – and one for all. Great societies are not judged by the rights and treatment given the majority, but the rights of the minority!!! Equality for all. Therefore, we must look within and balance the rights of all! All of us must sacrifice something for the greater benefit of all.

Political philosophy and principles are inviolate – but not caring for the need of our unfortunate fellow human beings who can’t help themselves is criminal in a civilized society. We all must provide adequate education, equal justice for all, health care, and basic human services with dignity for everyone. The basic foundation of government is to join together to provide: safety, health care, education, utilities, transportation, commerce and trade, for the benefit of all!

We also must live within our means! Spending today’s wealth to pay for yesterday, and tomorrow’s wealth to pay for today is wrong! There are no yesterdays, but only todays. We must provide the basic services we can afford with our available resources.

Our dedicated state leaders, in concert with business, employers and employees, etc., etc. working together must find solutions and end our budget crisis, without sacrificing our yesterdays, todays and tomorrows!

Meanwhile the business of legislating continues with over 1,000 measures awaiting action in the State Capitol. Proposition 5, which will be on the State Election Ballot in November is opposed by a coalition of law enforcement. This proposal is an extension of Proposition 36 passed by the voters in 2000 creating diversion programs for low risk, non-violent drug users. This proposal would be an extension of this existing law by re-structuring the California Department of Corrections. It would create a separate Department of Rehabilitation, additional diversion programs for low risk and non-violent drug offenders. A contingent of law enforcement groups, including the California Police Chiefs Association, the California State Sheriff’s Association, Crime Victims United, the Los Angeles County District Attorney Steve Cooley, Mothers Against Drunk Drivers, have formed a “No on Prop 5 - Against Prop 5 Deception” coalition.

Please find attached a 100 page legislative update on the status of measures we are actively involved with and are monitoring.

Keep the faith and stay “safe”.