It is going to be a knock-down, drag-out political battle to convince California voters to approve the six propositions on the May 19, 2009 ballot. In order to get the "down low" on the budget crisis, I attended a recent briefing for Southern California Ethnic Media hosted by New America Media (NAM) and California Forward. California Forward is a new organization created by California Common Cause, Center for Governmental Studies, New California Network and The Commonwealth Club of California's Voices of Reform Project. The goal of California Forward is to contribute to improving the quality of life for all Californians by creating more responsive, representative and cost-effective government.
The "Revenue Options for a Busted State" ethnic media conference featured James P. Mayo, executive director of California Forward, and his colleague Dennis Quirin.
Fortunately, there is hope for the passage of the propositions if California Forward's non-partisan campaign to explain the benefits of the propositions is successful. The campaign aims to explain how the passage of the measures will positively affect small businesses in ethnic communities by reforming the state budget process.
Frankly, attending briefings on the California's state budget crisis is not on my regular beat. But with massive job layoffs, housing foreclosures, business bankruptcies, and countless Americans living on the street and out of work throughout the nation, I decided it was a good idea to attend a briefing that might reveal what can be done to get California out of its financial crisis.
According to NAM executive director Sandy Close, the May 19 statewide ballot "will include a series of measures that are aimed at small businesses including restaurants, shops, and services (i.e., legal, travel agency, health) that impact the economic base of most ethnic communities."
Close pointed out during the briefing that the "ethnic small business sector is the key to state revenue income increases, but there continues to be a lack of input from ethnic small business owners who face higher sales taxes and less spending by consumers due to the recession."
While small business owners may benefit from the propositions, Governor Arnold Schwarzenegger is the joker in the deck when it comes to selling this package. Many voters will likely remember that it was Governor Schwarzenegger who promised that the 2004 ballot Proposition 58 would solve budget crises in the state once and for all. Unfortunately, Californians have since faced budget crises similar to the one that occurred last year. Now the Governor is again promising that a 'yes' vote [on Proposition 1A] will put California back on the path to prosperity. When I hear the governor promising that the budget will be balanced, I recall an old proverb that says "Fool me once, shame on you. Fool me twice, shame on me."
Five years after the passage of Proposition 58, California's financial house is even closer to collapse. Although the provisions of Proposition 58 addressed the $42 billion deficit in 2004, the state is presently facing an $8 billion deficit. So, please don't criticize me if I am a little skeptical when California Forward's Dennis Quirin, Coalitions Director, promises that the 2009 budget deal will finally resolve recurring deficits that continue to negatively impact the state budget.
The six propositions on the May 19 Election ballot are summarized as follows:
- Prop. 1A is designed to Reform and Stabilize State Budget by creating a long-term reserve fund to help protect against more devastating funding cuts to education, health care and other vital services in bad economic years. A portion of the reserve fund money will repay some of the cuts made to education as the economy improves.
- Prop. 1B will Protect Education Funding and start to reverse some of the damage made to public schools by the recent budget cuts. Sets up a repayment plan to restore $9.3 billion owed to schools and community colleges as the state's economic conditions improve. Helps local schools rehire teachers, reduce class sizes, buy up-to-date textbooks and restore critical student programs. Prop. 1B is directly tied to Prop. 1A. Both initiatives must pass in order for schools to get repaid.
- Prop. 1C is the Lottery Modernization Act and provides $5 billion in new revenues - without raising taxes - to help close the budget deficit. Guarantees that public schools will continue to receive the same amount of funding from the lottery they get now.
- Prop. 1D is the Children's Services Funding Act and will temporarily redirect unspent money from tobacco taxes to pay for children's health and social services.
- Prop. 1E is the Mental Health Funding Act and will temporarily redirect unspent funds to help pay for children's health programs including health care screenings, diagnosis and treatment.
- Prop. 1F Restricts Elected Officials' Salaries and prohibits state legislators, the governor and other state elected officials from getting pay raises whenever the state budget is running a deficit.
While there is no doubt in my mind that the passage of these six propositions are necessary to help resolve the current state budget crisis, I am not convinced that these budget adjustments will provide the long-term revenue solutions that will result in the financial stability essential to the well being of the once "Golden Sate" of California."
Ronald Ellerbe is editor of Hub City News and columnist for LA Beez.
California Special Election logo from California Secretary of State - Voter Information Guide
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