State budget crisis discussions are dominated by the following five questions, whose answers will determine our long-term fiscal future:
1) Will Governor Brown peel off the four Republican legislators to create a 2/3rds majority for his plan? To fill the $25 billion budget hole, the Governor proposes about $11 billion in tax extensions and $12.5 billion in spending cuts. Some GOP support may be needed to place his plan on the ballot in a June special election. Specifically, it would take two Republican votes in each house to form a 2/3rds majority (although this may not actually be required-see Question 4).
2) Will Republican legislators simply oppose Brown, or will we unite behind a plan of our own? There is broad agreement that our plan must include both serious pension and regulatory reform. Unsustainable public pensions are a serious concern, and business owners complain more about the uncertain regulatory environment more than they do about taxes. There is widespread discussion about whether to offer a counter-proposal, or try to merge our reforms with Brown's package without compromising on taxes.
3) Would Democrats accept any Republican counter-proposals? Would Democrats agree to placing a competing plan on the ballot if it were the only way to secure a place for the Governor's plan?
4) Without any bi-partisan support, would the Governor seek a simple majority vote to place his plan on the ballot? While Brown wants Republican support, he may not legally need it. While a 2/3rds legislative vote is needed to raise taxes, it might not be needed to place tax extensions on the ballot.
5) If the Brown Plan makes the ballot, would the voters pass it? The 5-year tax extensions (totaling $55 billion) may be a tough sell in a special election when turnouts are low and voters are disproportionately older and more conservative. If they don't pass, we revert to an all-cuts budget.
An all-cuts budget would be balanced with $25 billion in spending reductions-perhaps draconian by today's standard, but would place us at 1998 levels, even adjusted for inflation.
I will not be one of the two of my party to cut a side deal with the Governor and provide cover for his tax plan. However, I will not criticize my colleagues looking for real solutions, as I believe my party must. Saying "no" is not enough. I will support counter-proposals that avoid new taxes while imposing necessary economic and government reforms-especially in pensions, regulations, education, prisons, healthcare and welfare.
Unlike Congress, the state legislature cannot print money nor borrow endlessly against future generations. We will have a balanced budget. March 9th is the deadline for the legislature to vote to place proposals on the June ballot.
Jeff Tedford, UC Berkeley HEAD COACH-INTERCOLG. ATHLETICS - $2,338,409.39
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