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February 1, 2009
Crunch time on state budget. Tell lawmakers not to give in!
Dear FCL Supporter,
California will soon run out of money to pay its bills in full. Absent a budget fix, State Controller John Chiang will defer billions of dollars in payments to government agencies that disburse funds to those who are in need of government services, including the growing number of Californians who need a helping hand as the result of the severe recession.
As the stakes become higher, the added urgency is placing lawmakers in a difficult bind, which could result in making poor decisions that will negatively impact Californians for generations to come. Consider the record-late 2008-2009 budget, where lawmakers gave huge tax breaks to corporations in perpetuity in exchange for some new revenues this year and next.
In addition to proposing deep cuts to the safety net, Governor Schwarzenegger is insisting that legislators accept several “off budget” items as part of any budget deal, including weakening environmental laws and labor regulations long sought by the California Chamber of Commerce. These items have no impact on the state’s budget. If there is a need to change environmental and workplace rules, then they should be deliberated through the normal legislative process and not tied to budget negotiations in order to force legislators to accept the Chamber’s demands.
Moreover, in exchange for accepting some tax increases, the Republican legislative caucus is insisting on a hard spending cap that would limit future growth in state spending to population increases and the rate of inflation. This would further cripple the legislature’s ability to deal with complex problems. For example, people are living longer and the state's population is rapidly aging. A hard spending cap would prohibit expansions in health care and services to baby boomers when they become seniors.
While it’s refreshing to hear Governor Schwarzenegger acknowledge the need for tax increases, raising regressive sales taxes is the wrong way to raise taxes. In a recession, people spend less and put off major purchases. Increasing the cost of consumer goods will result in even less consumption, which is contrary to the goal of economic stimulus.
Since the early 1980’s, there has been a dramatic increase in wealth in the top income brackets. Raising the personal income tax rate on the highest incomes, as was done by former Governors Reagan and Wilson, would not alter consumption habits and would take money out of savings, which is preferable to reducing government spending in a recession.
Benefits paid to low-income Californians, such as food stamps, Medi-Cal and Cal-WORKS cash assistance, in addition to making ends meet for millions, are spent in local communities, which helps to stimulate the economy.
Governor Schwarzenegger has proposed significant cuts to Corrections, including parole reforms which go further than what the legislature has been willing to accept. Since 1980, spending for corrections has grown at nearly four times the rate of General Fund spending as a whole since 1980 (California Budget Project). Every dollar we spend on prisons means less money for education, health care and the safety net.
We know that California’s budget problem is severe. We can’t cut our way out of it, nor can we tax our way out of it. But we can make smart decisions to preserve the safety and stimulate the economy!
TAKE ACTION NOW!
Please write letters and make phone calls to Governor Schwarzenegger and party leaders. Tell them to:
- Protect the state’s safety net from severe cuts that threaten the health and well-being of our most vulnerable residents. A strong safety net also increases the prosperity of local communities.
- Reject the proposed increase in the state sales tax. Increase the personal income tax rate on the highest incomes instead.
- Accept the governor’s proposal to end parole for low-level prisoners who have not been convicted of a serious or violent felony, or a sex offense. Other states do this with no negligible impact on public safety.
- Take “off budget” items (weakening environmental laws and workplace regulations) out of budget negotiations. The budget impacts all Californians. It should never be mechanism for extorting favors for special interests.
- Reject a hard spending cap. Budgets are balanced by making tough choices, not by imposing rigid formulas.
Letters should be addressed to:
Governor Arnold Schwarzenegger
State Capitol
Sacramento, CA 95814
Phone: (916) 445-2841
Fax: (916) 558-3160
Senate Majority Leader Darrell Steinberg
State Capitol
Room 205
Sacramento, CA 95814
Phone: (916) 651-4006
Fax: (916) 323-2263
Senate Minority Leader Dave Cogdill
State Capitol
Room 305
Sacramento, CA 95184
Phone: (916) 651-4014
Fax: (916) 327-3523
Assembly Speaker Karen Bass
State Capitol
Room 219
Sacramento, CA 95814
Phone: (916) 319-2047
Fax: (916) 319-2147
Assembly Minority Leader Mike Villines
State Capitol
Room 3104
Sacramento, CA 95814
Phone: (916) 319-2029
Fax: (916) 319-2129
Sincerely,
Jim Lindburg
Legislative Advocate
Friends Committee on Legislation
717 K Street, Suite 500-B
Sacramento, CA 95814
Ph: (916) 443-3734
Fax: (916) 448-6109
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