A Dialog On State Spending

Over at Calitics there is an interesting diary from ‘zeroh8’ asking “Why Are We Spending So Much More?”  zeroh8 looked at the changes over the last ten years in how the state spends money.  The result, according to the diary, is a per-capita increase of $1088 as follows:

California Government Department
2007-08 less 1997-98 Per Capita Spending

Criminal Justice $185
General Government $14
Health $265
Higher
Education $109
K-12 Education $399
Resources & Environmental
Protection $27
Social Services $59
Transportation $30
Total $1,088 

Robert Cruikshank commented that the appearance of an education spending increase is an illusion, (sadly California still ranks 47th in education spending-per-pupil)

Much of the “increase” in K-12 funds is illusory. When Arnold cut the VLF in
2003 that money had to be backfilled by the state. That backfilling is listed on
the books as “spending” and so it appears as a huge “spending increase” when in
fact it is no such thing. Schools didn’t actually get more money. It’s an
accounting trick.

Robert is pointing out that this appearance of a large increase in education spending is actually just replacing spending that was already there, but that was cut from local budgets when Governor Schwarzenegger cut the Vehicle License Fee, so the state had to make up (backfill) the loss.  The state is spending more because local governments are spending less, but the total hasn’t increased.  Lesson: you have to look at the whole picture including local budgets to see the whole story because the state has to step in when local governments lose their funding sources.

Health care spending increases are certainly not isolated to California state government.  This is the health care crisis that is eating up government, business and family budgets around the country.  So far We, the People, in our wisdom, had avoided the kind of “socialized medicine” that the rest of the world has, which means we spend vastly more for health care with vastly worse results.  There is little California can do about it, except to further deny health care to people.  Is that the kind of people we will decide to be? 

Then there is that huge increase in criminal justice (prison) spending.  Was that necessary?  Well, we decided to pass laws that put people in prison for life for stealing a pizza or for years for smoking a joint.  And in the last few decades we have cut education spending, which to some extent has necessitated the increases in prison spending, because we know where that inevitably leads,

“18-to-24-year-old male high school dropouts have an incarceration rate 31 times
that of males who graduated from a four-year college”      

We’re seeing the health care crisis eating the state budget, and the problem of the prison costs.  Part of our problems today are because yesterday we were “penny wise
and pound foolish,” saving some money by cutting education only to
spend it on prisons (and who knows how many other ways) later.  Along with foolish tax cuts like cutting the VLF, and cutting property taxes for big corporations, and instead borrowing which has led to huge interest payments, those are the spending problems that brought about the budget crisis and that keep our government from being able to spend more on things We, the People need.

About those choices:  zeroh8 did a ton of research because no California citizen would know any of this from sources available to most of us.  The corporate media is not explaining the state budget and the functions of government to the public.  The example of the state making up local revenue losses in order to save our schools is a great example — instead it is just presented to people that the state is “spending even more”.

So what is the point of this exercise? To give the people the facts, not the phony sound-bites designed to further anger people against government and rail even further about having to pay taxes to fund the programs and services. The goal of the conservatives is to simply unfund government, thus making “We the People” powerless against the big moneyed interests — the people who brought you the sub-prime fiasco, the Wall Street boondogles, the Haliburton no-bid contracts and the Blackwater mercenaries.  As long as the bucks are flowing, what do they care if government can’t do its job…. what do they care about long lines at the DMV, wildfires that burn down communities, gangs that take over our streets and oh, yes……swine flu epidemics that kill millions?  They can just fly away in their private jets or sail away on their yachts — that california won’t tax.

Don’t Blame Me, I Didn’t Vote For Anything

The Republicans in Sacramento refused to vote for any budget, saying each budget didn’t cut spending enough, while also refusing to specify what items they wanted to cut and by how much.  The result was that the Democrats in the legislature had to vote to dramatically cut the school budget — along with everything else the state does.  And then after the legislature came up with those cuts, the Republicans voted against them, too

Now citizens are weighing in expressing their anger over these massive budget cuts, and the same Republicans are sending letters saying “don’t blame me, I didn’t vote for the cuts.”  A recent letter to constituents from State Senator Tony Strickland is most likely a standardized “boilerplate” budget statement that has been provided to Republicans to send out.  Let’s see if we can translate it into English:

As your Senator, I voted against the budget and the education cuts included in the proposal.  To answer your questions, I would like to share my reasons for opposing the budget and education cuts as well as why the Legislature decreased spending on K-14 education. 

Translation: don’t blame me for budget cuts, I voted against them.  I voted against everything you don’t like, and will claim to support everything you did like.  Whatever it was.  I can do that because I didn’t vote for anything.

In order to ease the impact of the funding decreases, the budget has granted local educational agencies unprecedented funding flexibility, which is the authority to move state funding for most categorical (special-purpose, such as principal training, English learner programs, and the arts) programs to supporting the highest locally-determined priorities through 2010-2011.  The spending flexibility should provide local agencies significant relief during this economic downturn.  However, if the agencies abuse the funding, then they have missed the opportunity to demonstrate that local communities are superior to managing their education funds than the bureaucrats in Sacramento. 

Sorry, I can’t figure out what this means.  Leave a comment if you can figure out what it says.

I will continue to support protecting education and providing local communities the flexibility to determine how to invest in their children.  Please be assured I will continue to oppose cuts to education because the state’s greatest asset – our children – will be the future workforce essential in reviving our economy.  Thank you, again, for contacting my office and sharing your concerns.  It is citizens like you who make the difference.

Translation: While voting against every budget, and being against any form of revenues — especially if they would be collected from the large corporations that funded my campaign — I now claim to support not cutting the education budget. 

This is an interesting strategy: Just vote against everything, and leave it to the responsible people to come up with ways to get around this obstruction.  And then, when citizens are angry about the huge mess this creates, send them letters saying you supported whatever spending they wanted, and that’s why you voted against everything.  Meanwhile, you collect your state paycheck, and receive hundreds of thousands of dollars in corporate “contributions.”  Nice work, if you can get it.

This is a dilemma for responsible legislators.  When you face an extremist group with just enough votes to block everything, how can you keep the kids in schools, provide oxygen tanks and other necessities to the elderly, provide police and fire protection and continue other essential government services?  When the state’s major media just won’t inform the public of the facts and makes this budget standoff seem as though government is little more than children squabbling over some cookies, with “both sides” refusing to compromise, the state slides toward becoming ungovernable.

What you you do about this?  There will be a ballot initiative tp roll back the rule that any revenue increases require a 2/3 majority to pass.  This initiative is currently named Restore Majority Rule, and you can visit the early website at ca.restoremajorityrule.com. Please sign up to help pass this initiative, and tell your legislators, friends and family that you support this change.

Our Businesses Thrive On The Infrastructure We Built

The key to California’s successful business environment are education and infrastructure.  It is not an accident that our semiconductor and computer and Internet industries, and biotechnology and pharmaceutical and genetic engineering and our other world-class competitive industries
developed in California instead of in “low
tax” states like Mississippi and Alabama.  These industries thrived here because of our well-educated people and our modern, well-maintained infrastructure. 

There has been a dramatic wealth-building return on our investment in education and infrastructure.  Investors could count on California as a good place to start and grow a business, and it has paid off.

But how much would it cost if businesses had to pay fair market value for use of the infrastructure that We, the People
built?  What would it cost if companies had to pay the full education cost every time they hire someone who was educated
at a California public school or state college or university? 

Continue reading

Republicans Admit Taxes Needed – Still Refuse To Allow Them

California Republicans finally, finally submitted what they claim is a plan to attack the budget deficits, detailing specifics of the cuts they are demanding.  The plan they submitted only cuts the deficit in half, thereby admitting (but not admitting) the urgent need to raise taxes to cover the other half of the deficit.  

The Republican plan guts public schools, community colleges, Medi-Cal, transit, mental health and many other programs.  And yet it still leaves half of the deficit in place.  So it isn’t really a “plan” at all.  It is just one more extremist demand that we gut public schools.

A phrase like “guts schools and programs” becomes abstract when it is heard often enough.  So what does this mean to the average Californian?  What kind of education will children receive as we push to 40 or more students per classroom?  Will they be safe if the district cannot afford crossing guards or buses?  Will any of us be safe after police and firefighters are cut back?  Do we go another decade without improving mass transit or even repairing roads and bridges?  Will epidemics spread as health care is cut back?  What about three-hour lines at the DMV?  And what happens to people’s ability to train for jobs when community colleges are cut way back?   

The Republicans demand that we sacrifice the education of an entire generation of school-aged Californians, so that a few wealthy people and corporations can become even wealthier!  Their benefactors are covered — their kids are in $20,000-a-year private academies.  But what will this do to the economic future of the rest of this generation, and to the future of California?  They don’t care.

This process as it has unfolded over so many years has shown us that California is ungovernable until we remove the current 2/3-requirement system that allows a small group of extremists to hold the state hostage.