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Current Issue Links
Despite the sunny tone of Gov. Jerry Brown’s State of the State address last week, local representatives
and officials expressed skepticism regarding the effectiveness of tax increases as a solution for economic
recovery.
But Brown also made it clear in his address that his political agenda was focused rather on ambitious
projects, such as the controversial high-speed rail project. While supporters have lauded Brown’s plan as a
progressive approach to putting California back into a position of cultural and economic predominance, his
critics have questioned the affordability of such projects.
After years of a downturning economy and painful budget cuts, Brown declared California as “on the
mend.” He said that state budget woes have been exaggerated, and that officials are now facing a $9.2-billion
deficit, which had previously been reported as more than $20 billion.
But some analysts have questioned how firmly rooted that number is in reality, since state revenue
projections have come in below estimates more often than not. Other officials say that the state’s budget
deficit was only passed on to the local level, since cities have continued to lose funding despite seeing an
increase in mandates.
California’s economic crisis was in full swing when Brown took office in January 2011. Rumors in the
state legislature at that time were predicting a total shutdown in state services if the structural deficit between
revenues and expenditures was not immediately corrected.
The pressure to pass a balanced budget by last summer was compounded by the voter-approved
initiative that would deny legislators remuneration if a balanced budget — approved by the state controller —
was not produced by the constitutional deadline of June 15.
That deadline was just missed, with many expressing surprise that Brown vetoed the first budget
proposed by the Democrat-controlled legislature.
An already frenzied battle between Democrats — who were calling for an increase in taxes — and
Republicans — who said that expenses needed to be cut instead — heated up even further. In the end, a
budget was passed with minimal support from conservatives and opposition by local agencies for the
“poison pills” that came in the rider bills.
Cities are still scrambling to recover from the loss of redevelopment agencies, which were ultimately a
casualty of budget riders. Ridgecrest officials say this could represent as much as $2 million in losses
annually to the city’s general fund, and ironically, yield very little to the state, since the longterm control of that
funding stream will be redirected to counties.
City officials have inferred that the state’s approach to solving the current economic emergency is what got
the state in trouble in the first place.
“We recognize the financial crisis facing the state government and also recognize how they got in that
position,” said City Manager Kurt Wilson. “It has become clear that the needs of the local governments, who
actually provide services, are overshadowed by the state needs.
“The January budget is a fluid document, but we will watch closely as the process unfolds over the next
five-plus months to identify and protect against additional areas where state officials believe their needs
outweigh ours.”
School officials say that education has also suffered more than its share of cuts, while local
representatives say that those cuts are all the more disconcerting since daily changes in the fiscal climate
make it impossible to make long-term plans based on reliable information.
But with similarly diminishing funding and increasing obligations, local school district officials say that
new revenue is necessary as an interim measure. Last spring boardmembers implored voters to consider a
tax initiative, while pleading with legislators to demonstrate fiscal responsibility in order to earn back voter
trust.
While those initiatives never materialized last year, Sierra Sands Unified School District Superintendent
Joanna Rummer said she is encouraged by Brown’s acknowledgement last week of the severe cuts levied
on education since 2008.
“The most positive outcome for the district’s students is dependent upon the success of the governor’s
initiatives,” she said. “We are hopeful that these initiatives will contribute to solving the structural deficit
problems of the state.”
Jean Fuller, a Bakersfield Republican who represents IWV on the state Senate, said that she was
pleased to hear Brown discuss the need to fix California’s water infrastructure issues and has offered to work
with him on a solution.
“Unfortunately, we heard more of the same tax-to-spend message rather than a plan to enact necessary
reforms and make government more efficient,” she said.
“Ultimately the people will have the final say on whether they want new taxes or a government that fits the
size of our wallets.”
Shannon Grove, Fuller’s counterpart in the state Assembly, blasted Brown’s plan for failing to address the
reality of the problems that plague the state, further accusing him of creating programs that benefit some at
the expense of others.
Grove said that raising taxes only delays the burgeoning liabilities in public pensions and social
programs that will inevitably have to be addressed.
At the same time Brown continues to heap layers of mandates and bureaucracy on Californians, she
said. “Brown signed 745 bills into law last year. This does not lift burdens off of our struggling economy.”
She described Brown’s proposed tax initiatives as a ransom for California’s hostage schoolchildren.
“The reasons that Gov. Brown touted for being optimistic of California’s future are, in reality, the very
reasons why businesses and jobs are leaving this state,” said Grove.
“California government has plenty of taxpayer dollars. What it doesn’t have is enough legislators with the
courage and will to spend these dollars responsibly and efficiently. I will continue to fight for less government
spending, no new taxes and a more jobs-friendly environment.
“However, until the people of California demand a massive change to the makeup of our state legislature,
the damage will continue to be felt by every taxpayer in this state.”
and officials expressed skepticism regarding the effectiveness of tax increases as a solution for economic
recovery.
But Brown also made it clear in his address that his political agenda was focused rather on ambitious
projects, such as the controversial high-speed rail project. While supporters have lauded Brown’s plan as a
progressive approach to putting California back into a position of cultural and economic predominance, his
critics have questioned the affordability of such projects.
After years of a downturning economy and painful budget cuts, Brown declared California as “on the
mend.” He said that state budget woes have been exaggerated, and that officials are now facing a $9.2-billion
deficit, which had previously been reported as more than $20 billion.
But some analysts have questioned how firmly rooted that number is in reality, since state revenue
projections have come in below estimates more often than not. Other officials say that the state’s budget
deficit was only passed on to the local level, since cities have continued to lose funding despite seeing an
increase in mandates.
California’s economic crisis was in full swing when Brown took office in January 2011. Rumors in the
state legislature at that time were predicting a total shutdown in state services if the structural deficit between
revenues and expenditures was not immediately corrected.
The pressure to pass a balanced budget by last summer was compounded by the voter-approved
initiative that would deny legislators remuneration if a balanced budget — approved by the state controller —
was not produced by the constitutional deadline of June 15.
That deadline was just missed, with many expressing surprise that Brown vetoed the first budget
proposed by the Democrat-controlled legislature.
An already frenzied battle between Democrats — who were calling for an increase in taxes — and
Republicans — who said that expenses needed to be cut instead — heated up even further. In the end, a
budget was passed with minimal support from conservatives and opposition by local agencies for the
“poison pills” that came in the rider bills.
Cities are still scrambling to recover from the loss of redevelopment agencies, which were ultimately a
casualty of budget riders. Ridgecrest officials say this could represent as much as $2 million in losses
annually to the city’s general fund, and ironically, yield very little to the state, since the longterm control of that
funding stream will be redirected to counties.
City officials have inferred that the state’s approach to solving the current economic emergency is what got
the state in trouble in the first place.
“We recognize the financial crisis facing the state government and also recognize how they got in that
position,” said City Manager Kurt Wilson. “It has become clear that the needs of the local governments, who
actually provide services, are overshadowed by the state needs.
“The January budget is a fluid document, but we will watch closely as the process unfolds over the next
five-plus months to identify and protect against additional areas where state officials believe their needs
outweigh ours.”
School officials say that education has also suffered more than its share of cuts, while local
representatives say that those cuts are all the more disconcerting since daily changes in the fiscal climate
make it impossible to make long-term plans based on reliable information.
But with similarly diminishing funding and increasing obligations, local school district officials say that
new revenue is necessary as an interim measure. Last spring boardmembers implored voters to consider a
tax initiative, while pleading with legislators to demonstrate fiscal responsibility in order to earn back voter
trust.
While those initiatives never materialized last year, Sierra Sands Unified School District Superintendent
Joanna Rummer said she is encouraged by Brown’s acknowledgement last week of the severe cuts levied
on education since 2008.
“The most positive outcome for the district’s students is dependent upon the success of the governor’s
initiatives,” she said. “We are hopeful that these initiatives will contribute to solving the structural deficit
problems of the state.”
Jean Fuller, a Bakersfield Republican who represents IWV on the state Senate, said that she was
pleased to hear Brown discuss the need to fix California’s water infrastructure issues and has offered to work
with him on a solution.
“Unfortunately, we heard more of the same tax-to-spend message rather than a plan to enact necessary
reforms and make government more efficient,” she said.
“Ultimately the people will have the final say on whether they want new taxes or a government that fits the
size of our wallets.”
Shannon Grove, Fuller’s counterpart in the state Assembly, blasted Brown’s plan for failing to address the
reality of the problems that plague the state, further accusing him of creating programs that benefit some at
the expense of others.
Grove said that raising taxes only delays the burgeoning liabilities in public pensions and social
programs that will inevitably have to be addressed.
At the same time Brown continues to heap layers of mandates and bureaucracy on Californians, she
said. “Brown signed 745 bills into law last year. This does not lift burdens off of our struggling economy.”
She described Brown’s proposed tax initiatives as a ransom for California’s hostage schoolchildren.
“The reasons that Gov. Brown touted for being optimistic of California’s future are, in reality, the very
reasons why businesses and jobs are leaving this state,” said Grove.
“California government has plenty of taxpayer dollars. What it doesn’t have is enough legislators with the
courage and will to spend these dollars responsibly and efficiently. I will continue to fight for less government
spending, no new taxes and a more jobs-friendly environment.
“However, until the people of California demand a massive change to the makeup of our state legislature,
the damage will continue to be felt by every taxpayer in this state.”
Locals voice mixed response to Brown’s tax
proposals
proposals
By REBECCA NEIPP,
News Review Staff Writer
News Review Staff Writer
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