Republicans are largely bystanders in a Legislature controlled by liberal Democrats – except when it comes to the state budget.
If they maintain discipline, the two-thirds budget vote requirement gives Republicans a pivotal role, one very evident in this year's game of political chicken over closing a $15 billion-plus deficit. But what kind of role?
Republicans posture as bulwarks against spending-crazy Democrats, but the hard facts prove otherwise. As a detailed chart published this week in The Sacramento Bee demonstrates, the two chief contributors to the state's chronic budget deficit have been spending that Republicans, including Gov. Arnold Schwarzenegger, championed.
State general fund spending has increased by some 33 percent over the last five years, from $77.5 billion in 2002-03 to $103.5 billion in 2007-08, but three-fourths of the increase can be fairly attributed to inflation (17 percent) and population growth (7 percent). That leaves about $7.4 billion in real spending increases.
The education, health and welfare spending that Democrats champion increased only slightly, if at all. Meanwhile, spending on prisons increased by $4.3 billion and payments to local governments to cover losses of revenue from license fees on cars account for another $3.1 billion. And who were the most adamant advocates for locking up more felons in prison (11,000 more over five years) and cutting those car taxes? Republicans.
Although Schwarzenegger ran on a pledge to end "crazy deficit spending," his first act as governor was to reinstate the car tax cut that predecessor Gray Davis had erased in a desperate bid to close the deficit. And Schwarzenegger has resisted suggestions that the state release low-risk inmates to save money.
It's very revealing that Schwarzenegger is now proposing a temporary 1-cent sales tax increase and some business tax changes to close the deficit. By happenstance, they would raise some $5 billion a year, close to the $6.1 billion that his car tax cut now costs – but only for a few years, after which revenues would drop sharply. By then, however, Schwarzenegger would be gone and it would be another governor's headache.
When, therefore, Republicans talk about runaway spending – Schwarzenegger this week referred to "an insatiable appetite to always grab all the money" – they should look in the mirror. But the GOP's irresponsibility doesn't stop there. Republicans also want to plunge the state even further into debt to cover the deficit, rather than owning up and being willing to tap taxpayers.
Schwarzenegger is at least semi-willing to face the music with his new tax proposal, even if it's temporary. But privately and publicly, Republican leaders are demanding that either spending be cut – except the spending they advocate – or money be borrowed from local governments, transportation accounts or other programs to close the gap.
Is that fiscal responsibility? Not by any rational definition.
Call The Bee's Dan Walters, (916) 321-1195. Back columns, www.sacbee.com/walters.
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