Is California Gov. Jerry Brown's 'ransom' budget an empty threat?
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| Los Angeles
There is little doubt, political analysts say, that California Gov. Jerry Brown (D) intended to frighten state voters with the budget he proposed Thursday. What is less clear is whether his new ultimatum is essentially an empty threat.聽
Facing a $9.2 billion deficit, Governor Brown warned Thursday that the state would have to cut $4.8 billion from education if voters did not pass his ballot initiative to raise taxes on rich Californians. 聽
鈥淗e is forcing voters to decide which pain they prefer: severe program cuts, including in both the education and corrections systems, or wrenching tax increases,鈥 says Villanova University political scientist Lara Brown.
But California has earned Standard & Poor鈥檚 worst credit rating for a US state precisely for its repeated refusal to address the structural imbalances in its budget, and it is by no means certain the Legislature would swallow Brown鈥檚 bitter pill even now.聽
Brown鈥檚 proposed $92.6 billion spending plan unveiled Thursday is intertwined with his ballot initiative. The initiative would raise $7 billion by raising the tax rate on Californians making at least $250,000, and by increasing the state sales-tax rate from 7.25 percent to 7.75 percent. The hikes would expire after five years.聽
If the initiative fails, however, Brown's budget plan has a trigger to automatically cut $4.8 billion from education.
Political scientist Dan Schnur told Bloomberg News that this trigger was "the most expensive ransom note in California political history." But聽Brown denies that he is trying to strong arm voters.
鈥淲hen they asked Willie Sutton why he robbed banks, he said, 鈥榖ecause that鈥檚 where the money is,鈥 鈥 said Brown in a press conference Thursday. Noting that 40 percent of the state budget, by law, is earmarked for education he continued, 鈥淲ell, education is where聽California鈥檚 money is.鈥
But getting the Legislature to back such a plan is another matter.聽
Republicans blocked a bid by Brown last year to raise taxes, and they are gearing up to block his budget聽 now. They say growing state tax revenues show that holding taxes low has stimulated the economy.
鈥淚t is disappointing to see Governor Brown propose yet another reckless budget scheme,鈥 said Assembly Republican leader Connie Conway in a statement.聽鈥淲e believe聽Sacramento鈥檚 focus should be growing the economy and getting spending under control, not trying to raise taxes.鈥
But there are signs that Democrats might be digging in as well 鈥 and the Brown budget would fail without Democratic support. At issue are proposed cuts to health and welfare services even if his tax initiative is passed.
"Legislative leaders are already declaring the onerous cuts will not be passed easily,鈥 says聽Barbara O鈥機onnor, director emeritus of the Institute for Study of Politics and Media at聽California聽State University,聽Sacramento, in an e-mail.聽
But she adds that the budget is 鈥渁n honest appraisal of what the budget will look like without revenue increases in November,鈥 and that voters seem to side with Brown 鈥 prioritizing education over health services. 聽
鈥淧olling indicates that voters are willing to increase revenues to avoid cuts to education,鈥 she says.
One key unknown is where the economy goes in the first half of 2012. If things go better 鈥 and more revenue comes in 鈥 pressure for both cuts and taxes decreases.
鈥Jerry Brown and the rest of the state thought that the economy would be doing better by now than it has,鈥 says Robert Stern, former president of the Center for Governmental Studies.聽鈥淗e is desperately hoping that the recovery will be evident by summer and that people will have more confidence in state government and him so that they will pass his measure. If not, education will take a huge hit and so will Brown.鈥
Brown is in a tough spot no matter which way he turns, adds says Jack Pitney a political scientist at聽Claremont聽McKenna聽College.
鈥淚n the longer run, he can't get the voters to raise taxes until he convinces them that he's made deep cuts,鈥 Professor Pitney says. 鈥淏ut will the Legislature accept the cuts?鈥 聽
鈥淭he Senate [Democratic] leader says he wants to hold off and see if revenues will go up,鈥 he adds. 鈥淢aybe that will happen, but might an uptick in revenues in the spring diminish the public appetite for a tax increase in the fall?鈥