Governor's May 19 propositions don't control spending, opponents say
Local legislators say they oppose a ballot measure that would cap state spending in exchange for extending the recent state tax hikes, a key piece of the governor's plan to reform the state budget.
Proposition 1A, the so-called "Rainy Day Budget Stabilization Fund," would create a spending cap and make it harder for the state to spend its emergency cash reserve, or rainy day fund, supporters say. It is one of six budget-related measures before voters on a May 19 special election ballot.
But it also would extend for two more years the increased income tax rate, the 1-cent sales tax hike and the near doubling of the vehicle license fee approved by Gov. Arnold Schwarzenegger and the Legislature earlier this year -- which the region's all-Republican delegation opposed.
State legislators from North San Diego County and Southwest Riverside County say the measure is just a ploy to extract more money from taxpayers without truly reforming the state's spending.
"The rainy day fund and the cap are probably a good idea," said Assemblywoman Diane Harkey, R-Oceanside. But "we don't need the tax extension. We are already the highest-taxed state in the nation."
The lawmakers are not alone in opposing Prop. 1A. Several local groups held rallies on Tax Day, April 15, to protest the tax hikes. Anti-tax groups, such as the San Diego Taxpayers Association, also have expressed opposition to the measure.
Supporters, including some business groups, say that Prop. 1A would stabilize the state budget's roller-coasterlike ups and downs.
"Proposition 1A … will change how budgeting is done in Sacramento by establishing a system that smooths out spending and ensures we have resources in savings to cover the gap next time the economy declines," said Ruben Barrales, president of the San Diego Regional Chamber of Commerce.
Other questions
Prop. 1A is one of six ballot measures that voters will decide May 19. The measures were part of a deal the governor struck with lawmakers in February to close a $42 billion budget gap through June 2010.
The other ballot measures are:
- Proposition 1B, Education Funding: Asks voters to modify Proposition 98, the voter-approved minimum school funding guarantee, to protect K-12 and community college funding when state revenue rebounds after lean budget years.
- Proposition 1C, Lottery Modernization Act: Asks voters for permission to hand out larger lottery jackpots as a way to sell more tickets. Also grants the state permission to stop using lottery proceeds for education programs. Instead, school funding would be paid through the general fund.
- Proposition 1D, Children's Services Funding: Asks voters to redirect $608 million in First 5 money for early child development to other children's programs for five years. Voters approved Proposition 10 in 1998, adding a 50-cent tax to each pack of cigarettes.
- Proposition 1E, Mental Health Funding Budget: Asks voters to shift $227 million in voter-approved funding from Proposition 63, the state mental health fund, for two years to pay for a low-income child development program known as the Early Periodic Screening, Diagnosis and Treatment Program.
- Proposition 1F, Elected Officials' Salaries: Asks voters to amend the state constitution to freeze salaries for lawmakers and state elected officers, meaning they would not be eligible for raises, during years the state is running a deficit.
All the measures except Prop. 1F appear to be unpopular among state voters.
Only Prop. 1F was favored by an overwhelming majority of voters polled, according to a survey released late last month by the Public Policy Institute of California. Among likely voters, 81 percent support it, 13 percent are opposed and 6 percent were undecided.
Bad deal?
Local lawmakers said they also support freezing their pay during budget deficits. But their answers varied when asked about Props. 1B-1E.
Mike Zimmerman, a spokesman for Assemblyman Martin Garrick, R-Carlsbad, said the legislator supports all the measures except Prop. 1A. Zimmerman said Props. 1B-1E would give the state more flexibility in spending, by allowing lawmakers to redirect funds from restricted pots of money to other worthy programs that don't have sufficient money.
Harkey said she opposed Prop. 1B because the state would pay back more than it borrowed from education. Under Prop. 1B, the state would give schools $9.3 billion beginning in 2011-12 to offset a reduction in current payments.
"Prop. 1B increases refunds back to the schools," she said. "There's got to be a better way to deal with all of this."
Critics say the measure is, in effect, a payoff to the California Teachers Association for implicitly accepting steep school spending cuts this year and next year.
Jeff Greene, a spokesman for Assemblyman Kevin Jeffries, R-Murrieta, said the legislator opposes Prop. 1A but supports the salary freeze for lawmakers. Jeffries has not taken a position on the other measures, Greene said.
Jeffries, who was unavailable for comment, wrote a recent column hinting at a backroom deal during budget negotiations earlier this year.
"This is no way to run a state," Jeffries wrote. "Secret negotiations and late-night deals should not be permitted in a free society."
Both houses of the Legislature got the bare minimum of votes to reach the two-thirds requirement needed to pass the package, which includes $12.8 billion in tax hikes, $15.1 billion in cuts, billions in borrowing and measures intended to stimulate the state's economy.
Republican Sen. Abel Maldonado of Santa Maria agreed to provide the final vote needed to reach the two-thirds in the Senate.
In exchange, he won major concessions from Democrats and the governor. Maldonado was able to strip out a 12-cent-a-gallon gas tax from an earlier version of the package and have two measures placed on the ballot: One seeks fully open primary elections and another would freeze lawmakers' pay when the state runs a deficit. He also got $1 million for office furniture in the controller's office deleted.
The San Diego Taxpayers Association said it opposes Props. 1A-1C. The organization has not taken a position on the other measures, said Lani Lutar, president of the association.
She said the measures do not fix the problem with the state budget because they don't control spending.
"We believe that (Prop. 1A) is misleading. It extends the tax increases, and we don't believe that it has a real (spending) cap," Lutar said.
The Associated Press contributed to this report.
Contact staff writer Edward Sifuentes at (760) 740-3511 or esifuentes@nctimes.com.
Sen. Mark Wyland, R-Carlsbad:
No- Proposition 1A -- Rainy Day Fund
No- Proposition 1B -- Education Funding
No- Proposition 1C -- Lottery
Yes- Proposition 1D -- Children's Services
Yes- Proposition 1E -- Mental Health
Yes- Proposition 1F -- Salary Freeze
Sen. Dennis Hollingsworth, R-Temecula:
No- Proposition 1A -- Rainy Day Fund
No- Proposition 1B -- Education Funding
Yes- Proposition 1C -- Lottery
Yes- Proposition 1D -- Children's Services
Yes- Proposition 1E -- Mental Health
Yes- Proposition 1F -- Salary Freeze
Assemblyman Martin Garrick, R-Carlsbad:
No- Proposition 1A -- Rainy Day Fund
Yes- Proposition 1B -- Education Funding
Yes- Proposition 1C -- Lottery
Yes- Proposition 1D -- Children's Services
Yes- Proposition 1E -- Mental Health
Yes- Proposition 1F -- Salary Freeze
Assemblywoman Diane Harkey, R-Oceanside:
No- Proposition 1A -- Rainy Day Fund
No- Proposition 1B -- Education Funding
Yes- Proposition 1C -- Lottery
Yes- Proposition 1D -- Children's Services
Yes- Proposition 1E -- Mental Health
Yes- Proposition 1F -- Salary Freeze
Assemblyman Kevin Jeffries, R-Murrieta:
No- Proposition 1A - Rainy Day Fund
Undecided- Proposition 1B -- Education Funding
Undecided- Proposition 1C -- Lottery
Undecided- Proposition 1D -- Children's Services
Undecided- Proposition 1E -- Mental Health
Yes- Proposition 1F -- Salary Freeze
Posted in Sdcounty on Sunday, April 19, 2009 12:00 am Updated: 2:57 pm. | Tags: X.props.20, Top, Local, Nct, News, Regional, Z.google.community_news, Z.google.headlines, Z.google.local, Z.google.region, Z.google.san_diego
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