A California Republican

Late Sunday night the Assmebly voted to pass a $23.4 billion budget package of cuts, taxes, fee increases and accounting tricks. The package was designed to close the hole in the budget when the fiscal year begins on Wednesday, July 1, 2009.

The budget package was a “majority vote” package; only the majority, Democrats, had to vote for it in order for it to pass. The Democrats are relying on the fact that they eliminated a tax, and raised fees, which is “revenue neutral” and so doesn’t need a two-thirds majority, but only needs a simple majority. They eliminated a gas excise tax, and introduced new fees on oil production and cars.

Somehow, the Democrats forget basic, elementary math lessons. If the money coming in is more, or greater, under the new plan than the old plan ,then it is not revenue neutral. However, Democrats are arguing that it is revenue neutral because the amount being brung in by taxes is the same, although fees replace some of the taxes. Democrats believe that there is no need for a two-thirds majority on the fee increases.

There are also several accounting tricks in the budget package, and no real reform. There is simply nothing in the package that solves the problem. It merely changes the nature of the problem. How can the Democrats believe that they can institute “fees” on various sections of the population to pay for services they don’t use, and possibly don’t want? Simply because they believe they cannot cut social services or education. Therefore, they make their fantasy a reality.

Good thing the Governor has vowed to veto the bill.

Now they need to get down to work and solve the problem. Wednesday is coming even closer.

State workers are gettinga tough break. They don’thave control over their salaries, job descriptions, job stability, or much else. They do have control over deciding to work for the state, but then control in your job ends there.

Many state workers took state jobs because of the pensions. If they work for 20 years and pay into the pension fund, then they are guaranteed health benefits for life, and a good pension. In order to obtain that level of security, state workers work for less than their counterparts, and give up control of their job security. Most state workers have felt this is an okay trade. Many are re-thinking that position.

The Governor has said that if the Legislature doesn’t pass a budget solution by July 1st, he will institute a 3rd furlough day for state workers. State workers are already taking a pay cut that amounts to 9.3% by having two fulough days. The Governor says that this will save $500 million in  one year.

But what will it cost?

There are approximately 700,000 state workers in the greater Sacramento area. This doesn’t count the other state workers in San Francisco, LA, San Diego, Oakland and other locations. State workers are going to be facing fiscal troubles if forced to take another pay cut. Most state workers have mortages, bills, car loans, and education costs that they are paying for themselves or their families. Another pay cut may mean that they canont pay for these things, and will go into default, bankruptcy or foreclosure.

In a time when the Governor says he wants to stimulate spending, circulating rumors of another pay cut isn’t the way to go. State workers are going to save more and spend less. In Sacramento, this may mean that many of the resturaunts in downtown, who rely on the business of state workers for lunch, will close. Downtown business that cater to state workers are going to close. Areas with large concentrations of state workers are going to see a downturn in spending. This won’t stimulate the economy, this will simply hurt it more.

State workers shouldn’t be punished. They are politically expedient to attack because there are a lot of misconceptions about state workers. The misconceptions are pushed by union actions, like actions the SEIU takes and the CCPOA takes. But most state workers aren’t the stereotype. They work hard, maybe they have some downtime, but every job does. State workers work for their money, just like everyone else.

They shouldn’t be punished because the state leaders cannot get their acts together.

The constitutional officers’ staffs still have not been furloughed. The court said the Governor had the power to order the furloughs, and the constitutional officers are saying they won’t do it, which simply causes the other state workers to take a harder hit.

 When do the tricks end and the real discussions and solutions begin? Not any time soon if this is any indication.