Betty Yee: State budget solution requires tax hikes

California has always been looked upon across this country and around the globe as the state that leads – in its diversity of communities, its beautiful coastline, its commitment to protecting the environment from the ravages of climate change, its world-renowned public universities and the innovation by its best and brightest minds. However, California's luster has tarnished, today boasting the highest gas prices in the nation, consumers paying top-dollar for groceries and being among the top five states in home foreclosures last year. As if this weren't enough, Californians are about to be sucker-punched again from the effects of an anticipated $20 billion state budget gap.

The state budget is supposed to reflect the priorities for California – what we as a society value and how to direct resources to make good on those values. It is the single most important policy document that guides and supports the roles and responsibilities of government, which fundamentally are about ensuring access to equal opportunity and improving and maintaining the qualify of life for all Californians.

The key to California's economic future is a high quality public education system to prepare our children to compete in a global economy. Yet deep education cuts are proposed in the state budget, already resulting in pink slips being issued to thousands of dedicated teachers and likely dragging California down even further among states in per-pupil spending.

As one of the top 10 economies in the world, California (and the rest of the United States), unlike many other industrialized nations, does not guarantee access to health care to its citizens. Access will be curbed further by the proposed cuts in reimbursement to Medi-Cal providers, leaving many to rely on more expensive emergency room care when they become sick.

The mortgage crisis has not only increased the number of families losing their homes but has increased the demand for rental housing. Yet the state budget proposes no funding increases for affordable housing and, in fact, reduces funding for homeless emergency shelters. It also proposes to suspend the cost-of-living adjustment for Supplemental Security Income/State Supplementary Payment grants for low-income seniors and people with disabilities, who can barely afford their rent and groceries now.

All said and done, the state budget will set this state back, with cuts hitting home with every Californian – the teacher laid-off, the low-income senior forced out of nursing home care and the working parents facing steep choices between affording their rent or paying more out-of-pocket for their sick child's medicine.

The facts are program cuts do not eliminate the need for services. People rely on state services more, not less, during times of economic distress. Additional borrowing only prolongs the tough decisions while increasing our future debt service obligations. By all expert accounts, the economy and revenues will remain weak, as the full effects of the mortgage crisis continue to unfold, consumer debt mounts, hiring slows, unemployment rises and wages fail to keep pace with the costs of food, housing, health care and gasoline.

The budget debate at the state Capitol must not lose sight of the already dim prospects for Californians, their families and their communities. The governor and the Legislature must increase taxes to balance the state budget if we have any hope of keeping the doors of opportunity open and maintaining the quality of life for Californians. All options must be on the table, with an eye on whom the tax burdens will fall, to enact a fair budget.

It may seem counterintuitive to raise taxes when California is down and out, but our future as the Golden State is at stake without ongoing investment and requires each of us to sacrifice now. This is not the time for government to give up on the people it serves. Increasing taxes must be part of the budget solution – it is the compassionate, responsible thing to do.

About the writer:

• Betty T. Yee is the vice chair and