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Contributors
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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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