“It’s clear that California’s budget fight, inevitably, has come back to new taxes vs. cuts. How can this be resolved?”
By overturning the two-thirds vote requirement on new taxes.
The Governor’s position determines the next steps. If the Governor stands firm against Democratic tax proposals, the Democrats will be forced to make real cuts. If the Governor waivers, the Democrats will be naked to public employee union pressure and they’ll continue seeking more taxes while trying to get a few Republicans to cave before July 1.
Majority vote fees to close the gap. The governor should get painted into a corner…sign these bills or run out of cash.
It can’t in the short term. Cuts and gimmicks come first and a tax overhaul next. That is the only way it will work. We will borrow and fee and then hopefully reform.
It can’t be resolved. It is an irresistible force meeting an immovable object. California is screwed.
Because we’re in a cyclical recession, cuts and structural budget reform are essential. For the near term, suspend all state COLAs for five years; get state labor groups to agree to freeze salaries and benefits for at least three years in exchange for a pledge for no layoffs; make major cuts; and impose a series of simply-majority vote “fee” hikes; including severance fees on oil and other goods sold out of state, such as DVDs.
It can’t. The state will sink into insolvency, then in a year and a half we’ll get to see who voters blame. That is, if we can afford to have an election.
To assume there can be a resolution assumes that there is some form of rational thought in the building. The Dems are following their playbook and provoking a major crisis. Susan Kennedy is a Dem. Unless the Guv has his own mind we’re screwed.
It will neverl be resolved. Democrats will look to provide more services and Republicans will call for streamlining government. Only election reform will smooth out the process, but will not eliminate the conflict.
It can’t and that’s why the state budget process will be an unresolved, 12-month fiscal tussle.
Part time Legislature is the answer to this and many other problems.
The Democrats get religion, as well as understanding the clear sign from the voters and do the right thing – cut, cut and cut some more.
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