California Republicans issue a plan for spending cap

Republican legislators on Wednesday proposed a spending cap that they said would end the boom and bust cycle of the state budget.

Assembly Speaker Karen Bass and other Democrats immediately criticized GOP members for creating a "diversion" from negotiating the budget.

The GOP proposal would restrict state spending growth each year to the combined percentage growth in population plus that of inflation, which Republicans said roughly average a combined 5 percent. If the economy grows, revenue in excess of the spending limit would be split between funding a new rainy-day reserve and paying down debt.

Senate Republican leader Dave Cogdill, who was joined by Assembly Republican Leader Mike Villines at a news conference in the Capitol, said he has watched spending grow out of control. Since 2000 the general fund budget has grown 29 percent, not counting for inflation, according to state finance figures.

"This state has a spending addiction, and we need to treat it," Cogdill said. "We need to find a way to move forward in our budgeting processing in this state so … we don't have to face the prospect of either increasing taxes or slashing services."

Under the GOP plan, the Legislature would be able to tap the reserve only when revenue fell below the spending limit. The move would be subject to a two-thirds vote of lawmakers, which would help ensure Republican involvement in a Legislature where Democrats now hold a majority.

Bass said there are already so many spending formulas in place that it would not be wise to add another formula or place a hard cap on spending.

"It really is hard to say you want to put money in reserves when you're facing a deficit," Bass said. "The issue is raising revenue, and that's what we need to do."

She and other Democrats were joined by labor leaders, advocates for the disabled and environmental representatives in opposing GOP proposals to change workplace protection laws, relax requirements for access for disabled people in buildings, and delay implementing the state's landmark global warming legislation.

"This is not going to happen on my watch," Bass said.

Cogdill said he believed Republican ideas provided a "common-sense" approach to make government more efficient.

Republicans also said they didn't embrace Gov. Arnold Schwarzenegger's budget plan because it doesn't restrain spending. Under Schwarzenegger's plan, the state would borrow $15 billion against future lottery funds and use the proceeds to establish a rainy-day fund.

The governor's plan also calls for automatic spending cuts when revenue dips to a certain level. Both Democratic and Republican lawmakers oppose what they consider a diminution of their legislative authority.

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