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Bill Morrow

Bill Morrow is a California State Senator (R) representing the 38th Senatorial District [North San Diego County and South Orange County] [go to Morrow index]

“No” On The Budget
The liberal budget would make things worse…

[Bill Morrow] 6/28/05

I voted against the Democrat-proposed budget, SB 77 on the Senate Floor last week and recommended that the liberal majority to break away from their special interests and listen to the people of California. The budget presented by the Budget Conference Committee did not garner a single Republican vote and failed to get the two-thirds majority needed for passage and rightfully so.

The budget presented last week by the Budget Conference Committee is dramatically different from the plan that Governor Schwarzenegger proposed in May and if enacted would only worsen the state’s fiscal situation. We must not make the same mistakes that created our current fiscal crisis.

This initial budget plan is bad for two reasons: It uses one-time money to fund permanent programs and staff; and it promotes higher taxes as the solution to the spending problem that plagues this state. In fact, this budget would add $2 billion to the state debt.

It makes no sense to pass a bad budget that exacerbates the problems already occurring in California. The governor brought forward a budget that contains fundamental policy reforms and ends the charade of continuous overspending on permanent programs.

The May Revision improved upon the Governor’s Budget in many ways, and it contained a number of features that are consistent with the goals of the Senate Republicans. SB 77 has eliminated or reduced a number of those key features, while adding some components that increase ongoing expenditures.

Changes in Overall General Fund Expenditures: The May Revision proposed to spend $88.5 billion in General Fund in 2005-06. SB 77 would spend $89.2 billion, which is a 13.4 percent increase over the $78.7 billion in General Fund authorized in the 2004 Budget Act.

SB 77 Does Not Contain Meaningful Budgetary Reforms. SB 77 does not improve the long-term fiscal picture over the Governor’s May Revision, and, by rejecting the Governor’s proposed VLF prepayment mentioned below, and a number of the other significant savings proposals contained in the May Revision, it makes the out-year picture worse.

With SB 77, the state will continue to spend more each year than it takes in, and will still carry an operating deficit of approximately $4.8 billion that has yet to be addressed. Without meaningful structural reform, California will continue to face an annual imbalance that could grow should the economy take a turn for the worse.

But do not just take my word for it, California’s non-partisan analyst, the Legislative Analyst’s Office (LAO) released their summary of Senate Bill 77 on June 20th. The LAO’s conclusion validates my analysis and the “No” vote for which I cast. CRO

For the full report please go here.





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