[img]7|left|||no_popup[/img]With the State Controller Issuing IOUs instead of checks (http://cbs5.com/local/california.budget.IOU.2.924701.html) on account of the money well being dry, it’s an understatement to say that the California budget has gone far beyond critical. I’m talking nuclear meltdown. With a recent budget proposal by Democrats shot down by Republicans, it’s unclear how, exactly, the eminence grise of the legislature will lead us out from the shadow of the valley of debt. This much is certain: The way out will necessitate both painful spending cuts and painful tax increases. But you don’t have to take my word for it. Two similar but not quite identical budget tools, one from the Los Angeles Times and one from the non-partisan group Next 10 let YOU make the tough choices to balance the budgets. Can you do better than the Powers That Be?
Starting with latimes.com/deficitcutter.com, I found myself balancing the budget mostly by raising $17 billion worth of taxes and cutting $8 billion worth of spending, with a net gain to the State budget of $1.145 billion. Among taxes raised: corporate income tax from 8.84 percent to 9.3 percent, additional nickel per alcoholic drink, additional $1.50 tax per pack of cigarettes, a 9.9 percent severance tax on oil pumped from the state’s lands or waters, broaden sales tax (estimated revenue is $1.1 billion, and $2 billion in tax revenue from keeping Prop. 13 intact for residences but not commercial properties whose assessments would be allowed to rise).
And spending? Oh, yes, I snipped and trimmed. I eliminated MediCal dental coverage to the tune of saving a whopping $150 million. Fifty million in savings comes from eliminating 33 allegedly redundant State boards. Another $450 million in savings comes from adding a third furlough day for government employees. Other “savings” would come from: turning over 19,000 illegal immigrants to the Feds for deportation, cutting the legislature’s budget in half and eliminating all new state college grants. But to prove I’m really serious about cuts, instead of listing all the nips and cuts, here’s the biggie: Cut K-12 and community college funds to the Prop. 98 limit, thereby “saving” $5.3 billion.
Schools Destined to Suffer
The Next 10 budget (next10.org) offered similar broad choices that differed in the details. There was no mention of cigarette or alcohol taxes, but the tool did offer a carbon tax estimated to bring in $6.2 billion to the budget as well as raising $4 billion by raising taxes on incomes above $300,000. Another option: Restore the Vehicle Licensing Fee to the levels it would have had were it not for Gov. Schwarzenegger. Interestingly, the Next 10 budget let me get away with fewer cuts but also no spending increases on anything. Except I stuck it to the kids again by choosing to reduce K-12 spending to Prop. 98 levels, resulting in $4.1 billion in “savings.” As with the L.A. Times tool, I ended up with a slight surplus.
Going through the exercise proved, first and foremost, that I’m really a softie. Cuts to education are bad enough. Cutting off funds to people whose health depends on it strikes me as grounds for expulsion from the human race. Much better to tax those people with a surplus of money. But I am also severely conflicted about raising taxes. For one thing, I don’t like taxes any more than the next person. More importantly, however, legitimate questions can be raised about the effect taxes will have on the economy, personal finances. Besides, I think the whole tax system is philosophically flawed and needs to be rebuilt from scratch, something that has as much chance of happening as Republicans taking long romantic walks on the beach with Democrats.
This is where the past couple of weeks’ discussion of the concept of “public” comes in play. At what point does individualism become selfishness? At what point is putting our own interests above that of others a product of egotism and narcissism? When it comes to the budget, there will be no winners. But given the choice between focusing intense pain on the few or diluting it by spreading it around, it’s time to reconsider our place in the social fabric.
Frédérik Sisa invites you to visit www.inkandashes.net.