Voters Defeat PropositionsCalifornia Budget

        While California faces a $21.3 billion budget deficit, voters went to the polls on May 19 and roun.dly rejected five propositions aimed at pulling the state back from the abyss. As a reflection of voter antipathy, the only proposition that passed was one that would prevent pay raises for legislators and statewide officeholders in years when the state budget is in deficit

The propositions presented a confusing array of approaches to getting California into the black, including spending caps, tax extensions, and shifting money from mental health and early childhood development programs into other portions of the budget. One of the propositions, which the California Federation of Teachers supported, would have directed more money to education.

The initiatives emerged from a stalemate that occurred between the Legislature and the governor in February. No sooner had state leaders closed a $41.6 billion gap than more deficits cropped up. The state is looking at more of the same for the fiscal year starting in July. In fact, had the propositions passed, they would of have generated less than a third of the money needed to close the current deficit.

Getting a budget passed in California poses an annual challenge due to a state constitutional requirement that the Legislature approve the budget by a two-thirds majority. This results in a Republican "tyranny of the minority," says CFT president Marty Hittelman. Writing in a May 20 op-ed in the San Francisco Chronicle, he notes that an April poll "shows that a majority of Californians support increasing taxes on those making more than $1 million a year and closing corporate tax loopholes to keep our state livable."

The state federation has been advocating for tax reform to address state deficits. Hittelman calls on state leaders to confront the minority of anti-tax ideologues, for "it is their job to clearly explain the links between taxes and the important services they fund." [Barbara McKenna, Fred Glass, San Francisco Chronicle]

May 20, 2009