CaliforniaAbout the last person I expected to be talking about on the Vanguard was Senator Abel Maldonado. Maldonado represents among other places my former hometown of San Luis Obispo. I remember him as the Mayor of Santa Maria, the moderate Republican who defeated the right wing racist Mayor of that town. He rose to prominence as a moderate, often casting the decisive vote on budgets.
He’s about the last person I expected to be holding up the budget, but here he is doing just that. And it appears to be all personal from where I sit. It has nothing to do with policy. Nothing to do with what’s good for this state. It is all about what’s good for Abel. I watched yesterday, while outside of his office, as he laid out his asking price in order to release California from its hostage crisis.
He listed off four things–and they were are all about him. You see in 2006 he wanted to run for Controller of the State of California, but he was not supported by the Governor. And he was unable to win in the primary. Now he wants to run again. This time, he wants to create a primary system where a moderate Republican can win; therefore, he wants an open primary system which would allow the top two vote-getters, regardless of party affiliation, to run in the general election. This of course would have to be approved by the voters and presumably placed on the May special election ballot with a number of other items that would be passed in this budget.
Next, he wants to pass a law that would prevent legislators from being paid if there is no budget on time. He also wants to ban pay raises for legislators and per diem increases during years of budget deficit. Finally, he wants to remove pork spending from the budget package, most notably, his little feud with the Controller where he wants to block the Controller’s office from $1 million to complete its office upgrade to make it ADA (Americans with Disabilities) compliant for access to those with disabilities and and make it compliant for workplace safety rules. The upgrades were approved and money set aside before CA was in a fiscal turmoil.
The four demands have little chance of receiving two-thirds support in the Legislature, so the Senator would accept perhaps one or two. “I think government reform is a priority. It could be one, it could be two, at the end of the day, I want government to be reformed.”
Senator Steinberg said it was not possible to place an open primary election on the May ballot, that is certainly not something you would want to create in a day or two. The middle two might be more reasonable. We will have to see this morning at 10 am to see if the Senate agrees to them.
Meanwhile there is a cost for inaction and it is very high.
The Governor’s Finance Director Mike Genest told a Senate Committee yesterday that there would be a huge cost for continuing to delay the budget. It would result in halting the remaining 276 public works projects which are roughly $3.7 billion in expenditure.
Moreover, the cost to stop these projects and then restart these projects would be roughly $400 million according to Will Kempton who is the director of Caltrans.
In December, state finance officials halted financing for 5,600 construction projects across the state. However they agreed last month to continue 276 projects that were either too far along in construction or would cost the state too much to halt and restart later.
These shutdowns would affect around 90,000 jobs across California. In addition, the Governor has threatened to send out layoff notices to 20,000 state workers today. That means that if there is no budget, there will be 100,000 people laid off this week.
Worse yet as Senator Cedillo said on the floor of the Senate last night, there is a ripple effect. On the low end 2.5 times, on the high end 5 times the ripple effect. What does that mean? It means that on the low end you could see 250,000 jobs impacted by this inaction, on the high end, 500,000 jobs impacted.
That does not even get into the issue of the state defaulting on loans. It does not get into what happens for counties that rely on state monies. It does not get into what happens for school districts that rely on state monies.
The response of Republicans like Senator Dennis Hollingsworth is how many jobs would the sales tax increase cost? He suggested 50,000 jobs. His colleagues asked him to site his data. I find it difficult to believe that paying one additional cent on the dollar in sales tax, which means one dollar for every $100 and $10 for every $1,000 is going to have that kind of effect.
The Republicans argue that their constituency doesn’t want to pay anymore for the fiscal problems of California. No one does, but it is interesting that Republicans do not want to pay any more taxes, but have no problem if others pay by losing their jobs.
That is what we face right now. Moreover, no one has proposed a budget that is balanced with only spending cuts. Not the Republicans. Their only proposal was $20 billion shy of being balanced and that included $10 billion in cuts to education.
We ran through the math yesterday. If you want to fire all state workers including prison guards, release 160,000 inmates, close down the college system, fire teachers, close down all of the state parks, and stop all public assistance including unemployment insurance, you get close to that $41 billion mark. But is that really what we want to do? Is that the state we want to live in? What would that end up costing CA?
More immediately we face a fiscal crisis because there are not 27 votes for that scenario either. Republicans have to understand that there needs to be compromise. The Democrats believe me do not want this budget, they do not want these cuts, but what’s the alternative? It is far worse. I spent most of my day talking to legislators and staffers who are sick about some of these cuts, but what’s the alternative? They are doing what they have to do. They have come a long way in compromise to get to this point. The Republicans have on the other hand done almost nothing in compromise, only two have come off the no new taxes stance. None have proposed an alternative.
This is what Abel Maldonado apparently does not mind having happen this week if he doesn’t get legislation that would make it easier for him to run for State Controller.
We’re out of time, the consequences for inaction start this week and they are severe. If you think the economy is bad now, just wait until there is several billion less pumped into the economy.
—David M. Greenwald
DPD, you're right that what he is doing is outrageous, but as usual, you overgeneralize. While the primary idea may be for him, not ALL four of his ideas are about him. I wholeheartedly endorse the legislator pay idea. How's that about him?
That issue is cover for him. If that's what he really wanted the deal would have been done yesterday. This is about the open primary and Controller's spending (which is his campaign fodder). It's about his political future.Fine the legislator pay idea, fine. That's a gimmick as I suggested last week. If that's what it takes, then fine, but it's going to make a darn bit of difference.
It's possible that Maldonado is forcing the hands of his fellow Republicans. And, at the same time, positioning himself in a leadership role. I believe there is an undercurrent for change in the Republican leadership – to what, remains to be seen.The idea that legislators not get paid for not balancing the buget did not originate in Maldonado's office. (A lot of …not's… here.)
Why is the Repub leadership still there? They negotiate a budget deal and then can't even deliver 3 votes for passage. Why do these people claim to represent their caucus'.
…Next, he wants to pass a law that would prevent legislators from being paid if there is no budget on time. He also wants to ban pay raises for legislators and per diem increases during years of budget deficit. Finally, he wants to remove pork spending from the budget package……I agree with this one whole-heartedly. But I don't agree with the primary nonsense. If this were truly about what is right, Moldonado would hold out for the above, but not hold things up for the open primary issue….Why is the Repub leadership still there? They negotiate a budget deal and then can't even deliver 3 votes for passage. Why do these people claim to represent their caucus'….Actually, this is a pretty good point…
I don't support the idea of not paying legislators their salaries when the budget is late for a number of reasons, not least of which is that it harms individual legislators disproportionately — obviously causing greater damage to those who have less family money. I agree with David, also, that it won't be affectve. However, if you want to do that and you want it to have a real impact on the process and save real money, then you should also stop payments to all the aides who work for the legislators and close down their taxpayer funded offices in Sacramento and in their districts. The cost of the legislators' salaries and per diems is small compared with the cost of their staffs and office upkeep and rent and so on.
That might be more effective, but I don't get the sense that the Republicans would care if it does get shutdown. They seem to want it to happen so they can tear down the government and rebuild it. The only problem is the cost to actual people in this state would be enormous.
Why is the Repub leadership still there? They negotiate a budget deal and then can't even deliver 3 votes for passage. Why do these people claim to represent their caucus'.I, too, appreciate this point. It seems very disingenuous to negotiate a compromise that can't pass.
Senator Mark Leno just made a similar point. He said that they thought they had a deal last week. Cogdill basically negotiated it and then thought they had the votes, but Cox switched. Cogdill couldn't get either Cox or Maldonado on board. He offered to resign. They refused to let him.So basically they have a leader they are not following and they refuse to name a new one. So it is dealing with 15 of their own captains. It's complete anarchy. He was really frustrated. Spent about 10 minutes in the press room doing interviews.
Do any of these Republicans come from districts that are hurting economically? As hard as California has already been hurt, this fact seems hard to ignore.
Latest news, republicans broke from their caucus, nothing to report. No deal. This is not going to end any time soon.
Showdown In California and KansasCalifornia and Kansas are scrambling like mad right now to do something about shortfalls. Both states have delayed income tax refunds over the budget crisis.Republicans in California are refusing to hike taxes while Republicans in Kansas refuse to allow the checks to be issued until the budget is balanced, somehow. Please see Kansas Suspends Income Tax Refunds; California One Vote Shy On Budget Impasse for more details.Bring A ToothbrushThe California Impasse Continues today, still one vote shy of passage.California lawmakers failed to reach agreement on how to eliminate a $42 billion budget shortfall as Governor Arnold Schwarzenegger prepares to shut down hundreds of public works projects and fire thousands of state workers.Senate President Darrell Steinberg, a Democrat, plans to lock lawmakers in the capitol unless they pass a $40 billion package of tax increases, spending cuts and bond sales today. The bills, backed by the Republican governor and by Democrats, remain one Republican vote short.Steinberg said he will put the tax increases up for a vote at 10 a.m. in Sacramento. If the measure doesn
the solution is not to raise taxes.this is what gets us into these budget crunches in the first place. Legislators get spend happy when they count on tax increases.
There is no solution without tax increases.
Okay.Propose an alternative that can work.a budget without tax increases. There is a novel concept.These tax increases are what gets us into messes like this in the first place.
That's not a proposal. No one has come close to offering a balanced budget without tax increases. The Republicans' effort only came up about $20 billion short. Look at the numbers referenced by Skelton in yesterday's entry. Give us a proposal that we can evaluate that balances the budget without raising taxes–using real numbers and you may have a point.
That's not a proposal. No one has come close to offering a balanced budget without tax increases. The Republicans' effort only came up about $20 billion short. Look at the numbers referenced by Skelton in yesterday's entry. Give us a proposal that we can evaluate that balances the budget without raising taxes–using real numbers and you may have a point.Don't need to. Tax increases push us into the hole. The more the increase, the more spend happy the govt gets. Hence, no balanced budgets….These tax increases are what gets us into messes like this in the first place. …Actually the worst economic crisis in 70 years got us into this situation in the first place.and making people pay more $ is somehow supposed to alleviate that crisis?If congress had managed to save $ for a rainy day without tax increases, the economic crisis could be better managed.Furthermore, how about undoing the expensive new train that cannot be afforded?
I still don't see a proposal, I see unsupported rhetoric. Also it's not congress, it's the state legislature. Furthermore, there is no amount of money that could have been saved to prepare the state for this kind of budget hit.
I still don't see a proposal, I see unsupported rhetoric. Also it's not congress, it's the state legislature. Furthermore, there is no amount of money that could have been saved to prepare the state for this kind of budget hit.The hell it couldn't. Excuse me, but how many years of school bonds? How many expensive things did we buy over the years? How soon we forget. You spend happy people who supported all of those school bonds we couldn't afford and supported the train only have yourselves to blame for this. You don't seem to care about the budget when you are getting your pork programs passed, but today is the day of reckoning. Your bad choices are coming home to roost.You have to own responsibility for your bad choices. Not the GOP.
Show me the cuts that will balance the budget, I've asked you multiple times, I keep getting rhetoric with no numbers attached to them.
Show me the cuts that will balance the budget, I've asked you multiple times, I keep getting rhetoric with no numbers attached to them.I'll cut you a deal. I'll show you numbers when you start admitting how pork projects are part of the equation.
……when you start admitting how pork projects are part of the equation….The governor has the line item veto. He can blue-pencil out anything he considers …pork….
…Don't Raise Taxes said… Show me the cuts that will balance the budget, I've asked you multiple times, I keep getting rhetoric with no numbers attached to them.I'll cut you a deal. I'll show you numbers when you start admitting how pork projects are part of the equation….You're spouting bile and aphorisms without giving any ideas that anyone can work with. Let me help you out:Let's get rid of paved roads. Dirt roads should do fine. Eliminate public education above 6th grade. Once kids know how to read and do basic math, send them to work in the fields to replace the migrant farm workers whom we'll send back to Mexico. Suspend social services for the disabled, for single mothers. Sell off the national and state parks to the logging companies. But keep the crowded and expensive prisons and the expensive military, because this is a scary world, after all. Generally, take the U.S. back before Roosevelt and we'll be happy with a simpler life, just like our great grandparents. Oh, and I mean Teddy Roosevelt, not FDR.
…Let's get rid of paved roads. Dirt roads should do fine. Eliminate public education above 6th grade. Once kids know how to read and do basic math, send them to work in the fields to replace the migrant farm workers whom we'll send back to Mexico. Suspend social services for the disabled, for single mothers. Sell off the national and state parks to the logging companies….Oh! Now I get it. And programs that help …the least of these among us… is pork!
…the solution is not to raise taxes.this is what gets us into these budget crunches in the first place. Legislators get spend happy when they count on tax increases….Okay.Propose an alternative that can work.
…These tax increases are what gets us into messes like this in the first place. …Actually the worst economic crisis in 70 years got us into this situation in the first place.
I’ve never denied it.
Here is how the plans compared in December, compiled by sfgate.com:…Competing plansCalifornia’s fiscal crisis is expected to create a nearly $40 billion budget deficit by June 30, 2010. Here’s how Gov. Arnold Schwarzenegger, and legislative Democrats and Republicans would reduce that total:– Schwarzenegger has suggested a $22.4 billion plan that includes $9.8 billion in cuts and $12.5 billion in revenue increases. He would raise the sales tax by 1 1/2 cents on the dollar, broaden the sales tax to include certain services, add an oil severance tax, add an excise tax on alcoholic drinks and increase the vehicle registration fee.– Democrats have come up with a $17 billion plan divided almost equally between cuts and new taxes that include restoring the vehicle license fee that Schwarzenegger cut when he took office and increasing the income tax by eliminating this year’s inflation adjustment.– Republicans want a $22 billion plan that includes $15.6 billion in spending cuts and $6.5 billion in new revenue for the general fund, most of which would be taken from money that now pays for mental health care for homeless adults and children’s health care.Sources: state Department of Finance, Chronicle research…So far the governor, the Democrats, and the leaders of the Republicans have compromised. Each group has given considerable ground. But the Republican senators refuse to budge even if it means shutting down the government. They, and they alone, bear the responsibility for the current impasse.
I can tell you where to start. Send the illegals and their children back to where they came from, that will save us $5 Billion per year. Reform welfare, the State will train welfare recipients to get them off the roles in two years unless they physically can not work. Adopt a consumption tax and punish legislators if they spend more than was generated the previous year. If the budget is not balanced each year the legislators and their staff are not paid until it is. Both sides are to blame for this mess including our Gov. But now the taxpayers are the State and Federal Governments ATM. It is time to stand up and punish these idiots that make thesee decisions.
…I can tell you where to start. Send the illegals and their children back to where they came from, that will save us $5 Billion per year….We’ve already discussed this, it won’t.The rest of your ideas lack for real numbers.If you’re serious actually do some research and come up with a proposal and then send it to the Republicans.