"California has avoided fiscal reality for so long it's fitting that the state legislature reverted to subterfuge last week while voting for its third budget deal in nine months. ... This vote scrubbing [of a bill to allow offshore oil drilling] is symbolic of the lengths to which California's leaders want to paper over the state's deficit. Some $1.2 billion of the money 'saved' in the budget deal comes from simply shifting the day state workers get paid by one day into the next fiscal year. Cities and counties will sue to declare the $3.2 billion raid on their propery tax revenue unconstitutional, and they might well win in court. ... No wonder the new Public Policy poll finds only 28% of voters are happy with the job done by GOP Gov. Arnold Schwarzenegger. He's tied with New York's Democratic Gov. David Patterson for the nation's worst rating. The California legislature's approval rating is even lower: 17%. ... Just 144,000 wealthy families. or 1% of taxpayers, provide half of the state's income tax revenue under the state's steeply progressive tax rates, which top off at 10.3%. ... The hour is late. Until the 1980s, Californians got richer than the rest of the nation did. But in 2007 alone, 260,000 poeple moved to other states with more opportunity. The Tax Foundation says only New York and New Jersey have worse business tax climates. ... Some business and labor groups say a constitutional convention is necessary to sweep away restrictions such as the requirement that a state budget muster two-thirds support in the legislature. But giving legislators more maneuvering room isn't the answer", my emphasis, John Fund (JF) at the WSJ, 1 August 2009: http://online.wsj.com/article/SB10001424052970204619004574321970408646040.html.
JF is a WSJ opinion writer. JP doesn't use the "I word" once. Suppose California elminated the 2/3 budget rule. Then what? It would spend as usual until it has no one left to tax. Productive Californians, leave. It doesn't want you. Did the change JF notes took place in the 1980s result from California's changed demographics? Perish the thought. JF, what is your answer?
5 comments:
Skep
Those 270,000 leaving California had all recently left Mexico. Have a look at the number of Mexican restaurants in the deep south and Northeast. They don't have a border with Mexico.
The figures of California outmigration are grossly distorted by the non-existent influx from Mexico.
IA...
You seem to be proposing major surgery and the legislature just wants a little botox.
Going to get messier in high tax states like CA, NY etc. Weak legislatures to boot.
The nonsense about the 2/3rds is a measure of how much the democrats want to rape the taxpayers.
Sure they can balance the budget. Just grab property through higher property taxes. It was just such local and legislative action that led to the prop 13 limits.
The legislature knows only the tax side. They are simply incapable of reducing government expenditure. The legislature must be reigned in and the 2/3rds is there is.
Last phrase should be:
"is all there is"
Pop,
Got room in TX? :P Or maybe I'm going to have to hide out in Richmond.
I can only hide here in CA so long and I get the feeling the jig is up...
Jr
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