The Capitol's budget game has evolved into a predictable pattern of political moves, one of which is a late-blooming demand for something not directly tied to the budget as a price for its enactment.
Demanders, usually the governor or minority legislators, justify their genteel extortion on the grounds that without the leverage provided by the budget, the majority party would simply ignore them.
That's why, for instance, the February budget deal included some hefty corporate tax breaks and a constitutional amendment demanded by Republican Sen. Abel Maldonado to create an open primary election system in California.
The state Democratic Party loathes an open primary and joined forces with Republicans to successfully challenge the legality of one approved by voters in the 1990s, but Democratic legislative leaders agreed to Maldonado's demand because it was the only way they could get a budget.
The most recent political confrontation over the budget, which was still playing itself out late Tuesday, includes an 11th-hour demand by Gov. Arnold Schwarzenegger that Democrats agree to an overhaul of the state's pension system and health benefits for retired state workers.
Schwarzenegger wants to undo the big increases in pension benefits that Democrats and his predecessor, Gray Davis, enacted 10 years ago. While pension benefits cannot be changed for those now on the state payroll, Schwarzenegger wants them rolled back for new workers in the future. He also wants to make it tougher for state retirees to get lifetime health care benefits.
"Retirement promises made to state employees amounting to hundreds of billions of dollars of unfunded debt threaten to consume growing portions of the state general fund and squeeze out funding for higher education, welfare, environmental protection and more programs," a two-page outline of Schwarzenegger's proposal declared.
There's no question that the state's generous retiree benefits are a huge financial burden. The 1999 boost would be cost-free because of investment earnings, the California Public Employees' Retirement System told the Legislature at the time, but the state's budget is spending nearly 10 times as much today on pensions. Meanwhile, the state has a $48 billion unfunded liability for retiree health costs.
Democrats such as Senate President Pro Tem Darrell Steinberg argue that a budget crunch is no time to consider such a major issue, and promise to talk about it after the budget is passed. But Schwarzenegger and others contend, with historic evidence, that without the leverage of a budget crisis, Democrats – beholden to public employee unions for political sustenance – would ignore pension reform.
It's certainly not the best way to confront major public policy issues, whether they involve corporate taxes, changing the primary election or overhauling pensions. But, given the dysfunctional atmosphere of the Capitol, it may be the only way.
© Copyright The Sacramento Bee. All rights reserved.
Call The Bee's Dan Walters, (916) 321-1195. Back columns, www.sacbee.com/walters.
About Comments
Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.