While both the political will and a desire to compromise may be lacking, there is no shortage of proposed solutions to various aspects of state government's financial woes.
In addition to a special commission on tax reform appointed by Gov. Arnold Schwarzenegger and legislative leaders, two reform groups have put forward suggested fixes to the tax system and budget process.
And earlier this month, legislative leaders announced formation of a two-house committee charged with finding ways to make the system more efficient.
Here's a look at some of the ideas being floated:
• Shift more of the personal income tax burden from wealthy taxpayers to the poor and middle class, so state revenues have less volatility when financial markets rise or fall.
• Lower state sales tax and eliminate corporate income tax, and replace them with a "business net receipts tax." The tax would be levied on companies' gross revenues, minus the cost of goods and services bought from other firms.
• Lower the two-thirds approval required for legislative passage of a budget while retaining it for tax increases.
• Change the annual budget system to a two-year cycle to allow more planning.
• Require any new spending proposal to identify a specific funding source.
• Mandate that state programs annually justify their costs or risk losing their funding.
• Allow local governments and schools to pass tax increases for specific programs by majority rather than two-thirds votes.
• Ask voters to approve California's first constitutional convention since 1878 – a convention where the budget process and tax reform almost certainly would arise.
"No one can say with any certainty what might come out of a constitutional convention," said John Grubb, spokesman for the Bay Area Council, the business group that touched off the push for a convention.
"But I have to believe that addressing the budget mess and all its related issues would be a priority for delegates. … It's at the heart of state government."
Call Steve Wiegand, Bee Capitol Bureau, (916) 321-1076.
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