Brown says he will persuade GOP to extend taxes
THE ORANGE COUNTY REGISTER
SACRAMENTO – Gov. Jerry Brown unveiled a revised plan for balancing the state's budget on Monday, and once again it rests on a contentious tax package that will require at least four Republican votes in the Legislature. Brown proposed virtually the same thing when he introduced his original plan in January, but after weeks of negotiations he never found the GOP votes. Now, with the budget deadline approaching and tax revenues rising, his search may be even harder.
In November, Brown was elected to his third term as governor with the promise that he had the wisdom and political know-how to fix the state's budget problems. On his campaign website, he touted his "deep knowledge about how government functions and how politicians operate" and said "I know how to break political log jams." After his inauguration, he got right to work, proposing to balance the budget with a five-year extension of temporary taxes enacted under Gov. Arnold Schwarzenegger in 2009. Sticking with his campaign promise of "no new taxes without voter approval," Brown proposed that the extension be placed on the ballot so voters could decide.
Brown's claim that he could breach the partisan gridlock was "nonsense," said Joe Mathews, Irvine Senior Fellow at the New America Foundation and co-author of "California Crackup: How Reform Broke the Golden State and How we Can Fix It."
"(It was) this magical solution, 'I'm this person who can do this impossible thing,'" Mathews said. But nobody can fix the budget under the current system, he said. "It's this game that's set up to lose," Mathews said. "The only way to win is to change the game." Brown would be better off proposing some fundamental reforms, like remaking the entire tax code, Mathews said. Then he might actually get somewhere.
But instead of changing course, Brown stuck to his guns on Monday. He rolled out virtually the same tax package, with the same five-year extension of the current 6 percent state sales tax and of the current 1.15 percent vehicle license fee. He did make two changes. He proposed delaying re-instatement of the quarter-percent income tax surcharge until 2012; his original plan would have reinstated it this tax year after it expired at the end of 2010. That represents some savings for taxpayers.
More importantly, Brown also changed how he proposes to enact the tax package. Before, he wanted the Legislature to vote to put the tax proposal on the ballot, so the voters could decide. Now, Brown is proposing that the Legislature approve the tax extension outright and then have Californians vote on it after the fact. Brown said the change is necessary in order for the state to start capturing the tax revenue when the new fiscal year starts July 1.
But the new strategy poses an obvious problem: If Brown couldn't get four Republican votes to put a tax extension on the ballot, how is he going to get four votes for raising taxes?
What's more, some believe that the state's revenue picture has undercut Brown's argument for taxes. Brown's new budget plan projects $6.6 billion more in tax revenue than his January plan. With more money already coming in, GOP legislators are questioning why the state needs to goose its tax revenue.
On Monday, Brown offered few details on how he intends to get Republican votes. Other than saying he's open to GOP calls for a spending cap, he said he's been talking to Republicans who seem like they could support his ideas. State Sen. Bob Huff, R-Diamond Bar, whose district includes part of Orange County, confirmed that some Republicans may be willing to vote on taxes, but said Brown would have to offer significantly more government reforms, including a spending cap and pension reform.
Senate Leader Darrell Steinberg, D-Sacramento, praised Brown's plan, calling it the "only credible framework" for fixing the state's budget mess. He expressed confidence the Legislature could get a budget passed before the beginning of the fiscal year. However, Jim Nielsen, the Republican leader on budget matters in the Assembly, seemed skeptical that Brown could secure the necessary Republican votes. "I do believe he is trying to talk to people," the Biggs assemblyman said, "but I would say that he's far more confident of the possibility than I am from my insider perspective as a member of the Republican caucus."
Even if Brown obtains Republican support, there's still the small matter of going to the ballot. In this economy, there's a chance voters will reject the tax extensions. And if that happens, Brown would be in an even tighter spot than he is now.
In November, Brown was elected to his third term as governor with the promise that he had the wisdom and political know-how to fix the state's budget problems. On his campaign website, he touted his "deep knowledge about how government functions and how politicians operate" and said "I know how to break political log jams." After his inauguration, he got right to work, proposing to balance the budget with a five-year extension of temporary taxes enacted under Gov. Arnold Schwarzenegger in 2009. Sticking with his campaign promise of "no new taxes without voter approval," Brown proposed that the extension be placed on the ballot so voters could decide.
Gov. Jerry Brown said Monday he's sticking with his plan to continue taxes enacted under Gov. Arnold Schwarzenegger. Photo Courtesy of the The Associated Press
It never happened. Brown's charm and political acumen were no match for Republican legislators, who argued that voting to put a tax extension on the ballot was tantamount to voting to raise taxes.
"(It was) this magical solution, 'I'm this person who can do this impossible thing,'" Mathews said. But nobody can fix the budget under the current system, he said. "It's this game that's set up to lose," Mathews said. "The only way to win is to change the game." Brown would be better off proposing some fundamental reforms, like remaking the entire tax code, Mathews said. Then he might actually get somewhere.
But instead of changing course, Brown stuck to his guns on Monday. He rolled out virtually the same tax package, with the same five-year extension of the current 6 percent state sales tax and of the current 1.15 percent vehicle license fee. He did make two changes. He proposed delaying re-instatement of the quarter-percent income tax surcharge until 2012; his original plan would have reinstated it this tax year after it expired at the end of 2010. That represents some savings for taxpayers.
More importantly, Brown also changed how he proposes to enact the tax package. Before, he wanted the Legislature to vote to put the tax proposal on the ballot, so the voters could decide. Now, Brown is proposing that the Legislature approve the tax extension outright and then have Californians vote on it after the fact. Brown said the change is necessary in order for the state to start capturing the tax revenue when the new fiscal year starts July 1.
But the new strategy poses an obvious problem: If Brown couldn't get four Republican votes to put a tax extension on the ballot, how is he going to get four votes for raising taxes?
What's more, some believe that the state's revenue picture has undercut Brown's argument for taxes. Brown's new budget plan projects $6.6 billion more in tax revenue than his January plan. With more money already coming in, GOP legislators are questioning why the state needs to goose its tax revenue.
On Monday, Brown offered few details on how he intends to get Republican votes. Other than saying he's open to GOP calls for a spending cap, he said he's been talking to Republicans who seem like they could support his ideas. State Sen. Bob Huff, R-Diamond Bar, whose district includes part of Orange County, confirmed that some Republicans may be willing to vote on taxes, but said Brown would have to offer significantly more government reforms, including a spending cap and pension reform.
Senate Leader Darrell Steinberg, D-Sacramento, praised Brown's plan, calling it the "only credible framework" for fixing the state's budget mess. He expressed confidence the Legislature could get a budget passed before the beginning of the fiscal year. However, Jim Nielsen, the Republican leader on budget matters in the Assembly, seemed skeptical that Brown could secure the necessary Republican votes. "I do believe he is trying to talk to people," the Biggs assemblyman said, "but I would say that he's far more confident of the possibility than I am from my insider perspective as a member of the Republican caucus."
Even if Brown obtains Republican support, there's still the small matter of going to the ballot. In this economy, there's a chance voters will reject the tax extensions. And if that happens, Brown would be in an even tighter spot than he is now.
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