Following Tuesday's meltdown at the Capitol, the deterioration of California's finances appears to be matched only by the deterioration of its leadership.
Close to a budget deal over the weekend, Democrats and Gov. Arnold Schwarzenegger suddenly decided to declare war on Tuesday. They've since used their public platforms not in service of the state, but to launch salvos that will only fuel this agonizing impasse.
The issues that separate the two sides are significant, but not large enough to allow the state to spiral into insolvency.
Schwarzenegger wanted Democrats to agree to exempt highway projects from environmental laws and to enact deep cuts in welfare programs and state payroll as the price for supporting higher taxes and fees.
Democrats agreed to a 2 percent cut in welfare grants, and some, but not all, of the environmental exemptions. They also have insisted that the governor first negotiate with unions before attempting to furlough state employees and eliminate some paid holidays.
In an interview and op-ed in The Bee Tuesday, Senate President Pro Tem Darrell Steinberg suggested the deal blew up not because of policy differences, but because of political pressure placed on Schwarzenegger. Steinberg says the governor got "cold feet" over the Democrats' plan to raise taxes and fees through a majority vote.
There may be some truth to this. On Tuesday, the California Chamber of Commerce issued a statement urging the governor to veto the Democrats' plan, saying it included "unconstitutional and discriminatory tax increases." Since the chamber is one of the governor's few political allies, their stern opposition to increasing taxes by a simple majority vote may well have led Schwarzenegger to backpedal.
Yet even if that is the case, the Democrats' unwillingness to enact deep cuts now – in the face of a $40 billion, 18-month shortfall – gave the governor few reasons to stick with their plan. Steinberg and Assembly Speaker Karen Bass appear all too willing to raise taxes now and defer hard decisions until later. This is unacceptable. Californians can't be expected to absorb higher taxes if legislative leaders can't concurrently reduce spending by at least an equal amount, including serious cuts to the Legislature's payroll.
For his part, the governor can't continue to hide behind statements that he is "neutral" about the legality of the Democrats' revenue plan. If he has doubts about the legality or the wisdom of the Democrats' plan, he should say so. Otherwise he can't blame Democrats for wondering where he might stand on this potential budget solution, or any future one.
This is a crushingly sad moment in California's history. In previous times of crisis – earthquakes, floods, war, economic depression – state leaders stepped forward, put aside their egos and ideological differences and put the state's interests above all else.
Yet here we are in 2009, with the Democrats pandering to their union backers, the governor taking his orders from the Chamber of Commerce and both sides playing the blame game. It's a tragic, surreal state of affairs.
Coming Sunday
The Bee launches "Shared Sacrifice," an editorial series on the various interest groups whose demands have contributed to the deadlock over California's budget crisis.
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