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LA Times Seeks Your "Balance The Budget" AssistanceViews: 442
Jul 02, 2009 1:17 amLA Times Seeks Your "Balance The Budget" Assistance#

Lamar Morgan 954-603-7901

Would you like to help California "balance its budget?" Well, the LA Times has come up with a clever way for you see how well you might do if given the chance. Check out the particulars here online.

Good luck(You're going to need it).

Lamar Morgan
CDMM - Synergistic Business Marketing
707-709-8605
Need PR?...Call Lamar!

Private Reply to Lamar Morgan 954-603-7901

Jul 02, 2009 2:47 amre: LA Times Seeks Your "Balance The Budget" Assistance#

Scott Wolpow
Looks easy, Stop paying for people that never contributed to the system and the fraud. Make fraud penalities be triple what they stole. If needed sell their organs to compensate the state.

Private Reply to Scott Wolpow

Jul 02, 2009 4:42 amre: LA Times Seeks Your "Balance The Budget" Assistance#

Ken Hilving
The detail is both overwhelming and insufficient when the links are followed. The way information is presented (by department) makes some ideas impossible to evaluate. Innovation across departmental lines by finding common cost categories is not enabled.

For example, a restructure of state employee compensation is an idea that cannot be quantified with the resources available. I would suggest that a 1:20 ratio from lowest to highest level would be a good start, but I cannot find either end point, let alone the various levels and the number of employees by level.

Setting a minimum and maximum compensation based on state revenue would also be worth considering. Before cutting back hours or employees, state workers would see a reduction towards the minimum for their level.

Merit pay determined at regular intervals would be a more sustainable approach than promotion as a reward. It allows workers to be rewarded on merit without creating a permanent obligation.

Retirement funding based on a percentage of wages earned, set aside at the time earned, also makes better fiscal sense than an open ended obligation. Each state employee would know exactly what was in their fund, and at retirement that amount would be their entitlement.

With all the various departments, I would say that objectives have not been well defined. This leaves requirements and solutions, which are the drivers of the state budget, poorly determined and difficult to review. Clarity of purpose would itself make for smaller government costs. Objectives that are no longer valid, along with all the supporting state government costs, would be much easier to eliminate. Requirements and solutions that are failing to meet the validated objectives would be easier to identify and refine, allowing more efficient use of limited revenue.

In short, the entire cost of state government relies on security by obscurity, as the failure to pass a workable budget has revealed. California is hardly alone in this.

Private Reply to Ken Hilving

Jul 05, 2009 5:56 pmre: re: LA Times Seeks Your "Balance The Budget" Assistance#

abbeboulah
As a matter of interest, I did spend some time on this exercise -- even managed to 'balance' that budget, that is reconcile the numbers but only to have them show that it is inherently as misguided as the budget process itself. Some of the specific difficulties have been pointed out. The choices are crude and incomplete, the consequences invisible, for example. But is not the fundamental problem that spending commitments have been made for which equivalent revenue provisions have not been secured? So when the revenues fail to materialize, commitment / promises will have to be broken. The 'balancing' in such situations consists of finding those promises that will have the least adverse consequences (AKA next election penalties, only soem of which will be functionally related to the actual damage and suffering caused, according to the motto: let the devil take the hindmost). Doing this with specific budget items will inevitably cause imbalances and inequities in the entities (people, institutions, departments, industries) affected. Which brings me back to a suggestion I made earlier, perhaps in a different forum but one I know is monitored by most of the few remaining stragglers here: of defining the budget allocations not as actual sums but as percentages of the revenues that will actually materialize. This will automatically spread the impact, minimizing the resulting inequities, and encourage all affected to get creative and innovative both with respect to estimating the revenues, and with respect to strategies for dealing with the uncertainties involved. It does not preclude adjusting the percentages to address specific identifiable problems in specific sectors.

A companion measure -- to resolve the apparently intractable controversy about referenda and voter initiatives (a similar issue looming in Florida, widely and hotly debated in blithe ignorance of California's experenience from what I can see):
Each new law and referendum etc. must be accompanied by an analysis of how it will be paid for -- again, in terms of budget percentages and if necessary by new taxes, so people can see who will be affected, and how.

Barring some such measures -- might one not expect these innovation and creativity groups to fair be buzzing with suggestions? --- the budget-balancing act will predictably cause both inequities and resentment (with unpredictable severity), in other words, just "new / improved" problems.

Private Reply to abbeboulah

Jul 05, 2009 6:11 pmre: LA Times Seeks Your "Balance The Budget" Assistance#

Alan Walsh
The single best thing the California government can do to balance their budget is to change the atmosphere from business-hostile to business-friendly.

It's too late to try backing up the massive socialistic spending that the state has adopted as it's mantra, so the only way to deal with the problem is to raise the tax revenues. The best way to do that is to raise the business base. The state has been business-unfriendly for decades. It's time they woke up and smelled the coffee. It won't be done overnight, but then the deficit won't go away overnight either.

Al Walsh, CEO
Walsh Enterprises, Business & Financial Advisors

Private Reply to Alan Walsh

Jul 06, 2009 2:24 amre: re: LA Times Seeks Your "Balance The Budget" Assistance#

John Stephen Veitch

Lamar has been bemoaning the problems of California for many months now. I've always had the view that the people of California have created their own problem. This author seems to agree with me, and he knows much more about it than I do. If the political system is dysfunctional, there is no "help" that anyone can offer, that will do any good. - John

Californians are sinking themselves

An inflexible right wing is allowing the Golden State to drown in debt. But it's not alone

By Gary Kamiya July 2, 2009

The world's eighth-largest economy has just gone belly-up. When midnight tolled on Tuesday night with legislators and Gov. Arnold Schwarzenegger still deadlocked over how to resolve the state's staggering $24 billion budget shortfall, California became unable to pay its bills. The state will have to begin issuing IOUs to its creditors as early as Thursday. It is the worst budget crisis in the state's modern history.

There is an unreal, almost dreamlike quality about this moment. Dreadful things are about to happen: Hundreds of thousands of children will lose their healthcare. Five thousand state workers will be laid off. Massive cuts will decimate education at every level. Social services will be slashed. Two hundred and twenty-nine parks, out of a total of 280, will be shut down. Even some of the state's landmarks may go on the auction block to raise money.

Yet as their state prepares to go over the cliff, California's citizens seem weirdly oblivious, or resigned, or numb. Like inhabitants of a corrupt third-world country who have utterly lost faith in their government and in politics itself, or ostriches sticking their heads in the sand, Californians are behaving as if the whole thing is out of their control. Or even that it isn't happening at all.

Californians are not directly responsible for the state's budget debacle. They are not the legislators who are so ideologically polarized that on Tuesday they could not even agree on an emergency partial budget fix that would have saved the state $5 billion. But in a larger sense, Californians are indeed responsible for today's crisis. The cumulative weight of their decisions, over decades, and their inability to reach consensus on the fundamental issue of what government should do and who should pay for it, are squarely responsible for the historic mess this unruly nation-state finds itself in today.

It is a truism that California is a national bellwether. From John Muir's founding of the Sierra Club to Prop. 13, the 1978 tax revolt, from Mario Savio to Ronald Reagan, from Hollywood to Silicon Valley, California has time and again proven itself to be a national and global trendsetter. The least American of places, a piratical exception to East Coast gentility on the far end of the continent, it is also the most American of places, with its brilliant, selfish and wanton extremities mirroring the oldest and still-unresolved contradictions of the American spirit. As Kevin Starr, dean of California historians, writes in his superb 2003 book, "California: A History," California has "long since become one of the prisms through which the American people, for better or worse, could glimpse their future." And right now, what they see isn't pretty.

The immediate source of California's financial problems is a lethal combination of ideology and rules. It is deeply politically divided, and its governmental mechanisms are completely broken. Bay Area leftists stare at Orange County conservatives across an unbridgeable abyss; a large and potent group of anti-government libertarians faces off against an equally powerful group of pro-tax, proactive government liberals. If California, like most states, required only a simple majority to pass its budget, the disagreements between these camps could be worked out; after all, the Democrats control the Legislature. But California requires a two-thirds majority, which gives the GOP, now dominated by anti-government, anti-tax ideologues, veto power over the process. The result is deadlock.

Compounding this problem is California's notorious initiative process, which allows voters to bypass the Legislature and place initiatives directly on the ballot simply by gathering enough signatures. The initiative process was originally passed by voters in 1911 to circumvent the power of the oligarchic railroad trusts by restoring direct democracy. And it still offers citizens a chance to take control of important issues. But it has gone out of control, abused by powerful interests who hire people to collect signatures and ram through bills that no ordinary citizen can be expected to comprehend. By sidelining elected officials, it achieves the worst of both worlds: It gives ordinary citizens, who lack requisite expertise, institutional memory and accountability, too much power, and then forces legislators to clean up their mess -- except that because of ideological gridlock and the supermajority requirement, they can't.

A classic example is the 1994 "three strikes" initiative, which mandated harsh prison sentences for repeat offenders. The bill was cathartic for citizens who wanted to get tough on crime, but it had serious budgetary consequences. As a result of the initiative and other tough crime laws, California's prison population has increased 82 percent over the last 20 years. State institutions now house a mind-boggling 170,000 prisoners. Corrections costs California $13 billion a year -- a fivefold increase since 1994, and more than the state spends on higher education. Former Gov. Gray Davis gave the powerful prison guards union a 30 percent pay raise from 2003 to 2008.

But the most momentous initiative was Prop. 13, which slashed property taxes. By voting for Prop. 13, while not demanding a reduction in public services, Californians were in effect saying they wanted to have it all: low taxes and social services, subsidized public education, infrastructure and the other things provided by government.

This was, in effect, a mass outbreak of cognitive dissonance, an up-yours delivered to government with the public's left hand, while its right hand reached out for Sacramento's largesse. Now, 31 years later, the bill has finally come due. There is no free lunch. If you want good roads, parks, decent schools (California's schools, once the best in the nation, are now among the worst) and adequate social services, you have to pay for them.

For some reason, Californians have never come to grips with this fact. Some citizens who voted for Prop. 13 and other anti-tax measures are hard-line right-wingers who are ideologically opposed to government and don't care if state programs die. They are the soul mates of the current Republicans in the Legislature, who see the current crisis as a golden opportunity to get rid of government programs they have opposed for years. But they are the minority. Polls show that most Californians are more centrist. They are not absolutely opposed to taxes or government programs. They want compromises that work. The tragedy of California is that its political system no longer speaks for them. The center has not held. It no longer exists. It is a self-reinforcing problem: The more the public perceives politicians as ineffectual, the more it dismisses politics altogether.

As historian Starr points out in his new book, "Golden Dreams: California in an Age of Abundance, 1950-1963," this was not always the case. During what now looks like a Golden Age, moderate Republicans and Democrats worked together to get things done. Republican Govs. Goodwin Knight and Earl Warren and Democratic Gov. Pat Brown were masters of the art of the possible, reaching across the aisle to hammer out effective legislation. Even Reagan was more pragmatic than later GOP myth-makers claim. As governor, Reagan pushed through the largest tax increase in the state's history to pay for government services. It was during these years, Starr points out, that the infrastructure that allowed California to grow was built -- an infrastructure Californians are still living off today.

What happened? Why did the center fail? Why has California, a place famous for giving birth to cutting-edge ideas that changed the world, proved humiliatingly unable to manage its own affairs? Why can't California do politics as well as it does technology, biotech, movies, music and social justice movements?

Beyond the state's dysfunctional system, the short answer is the rise of the hard-right GOP. Pushed far to the right by ideologues like Newt Gingrich, Tom DeLay, Grover Norquist and their ilk, California Republican lawmakers have staked out an absolutist line against taxes that makes governance nearly impossible. Lawmakers who believe and act on Reagan's famous line that "government is not the solution to our problems, government is the problem," are walking oxymorons. Why expect anti-government Republican legislators to resolve a budget crisis when that crisis will result in their goal: the destruction of government? The floundering Governator may not be an extremist, but he remains in thrall to the members of his party who are.

But Californians themselves, of all political stripes -- or, more likely and significantly, none -- also are responsible. The fact remains that self-centered California has yet to come to terms with what it is. This is a state that was built with government programs, financed by massive federal military and aerospace spending and state funding of local projects, and yet still has not decided what it thinks about the New Deal, or government itself. Of course, those opposed to government tend to be on the right. But the fact that many leftists, chasing the chimera of perfection, disdain the world of practical politics is also damaging.

Will California be able to pull itself out of its current hole? Certainly it has done so in the past. Its history is nothing if not a tale of reversals and unexpected triumphs. It will no doubt muddle through. But in the long run, to overcome its structural problems, it must transform some of its most cherished values. Without abandoning its individualism, utopianism and radicalism, it must learn how to use them in the world -- with all the compromises that requires. Like an aging starlet, the Golden State is clinging desperately to its glorious youth. But it is past time for it to grow up.

Private Reply to John Stephen Veitch

Jul 06, 2009 5:05 amre: re: re: LA Times Seeks Your "Balance The Budget" Assistance#

abbeboulah
The July/August issue of the Atlantic Magazine has a book review on Starr's book, and another article about renewable energy initiatives, both of which that shed some interesting light on how California's own actions and policies of the Federal Government have interacted in various ways in leading up to the current situation.

It is less enlightening and encouraging to read, as responses to the challenge this post raised, the old scratchy records replayed about how a) the 'socialist' policies are the source of the problem and must be reversed, and b) on the other hand, how the "inflexible right wing" policies with the 'government is the problem' mantra etc. have caused the mess California is in. The California problem is serious far beyond its borders; it is likely to spread, and so perhaps deserves less (fill in your own epithet) responses -- hello Innovators? We may not have good ready 'instant' answers up our sleeves yet, but one thing is pretty clear: just blaming the other guys (whoever they are) is NOT a solution. Let's try something else.

Private Reply to abbeboulah

Jul 06, 2009 5:34 amre: re: re: LA Times Seeks Your "Balance The Budget" Assistance#

Alan Walsh
I wish the California Republican leaders were as staunch as the author intimates. At least then they would stand for something unique. For years the Republican leadership have been acting more like Democrats.

Private Reply to Alan Walsh

Jul 09, 2009 4:13 pmre: re: re: re: LA Times Seeks Your "Balance The Budget" Assistance#

abbeboulah
Stepping back from the immediate problem for a moment -- which appears so untractable in part because of the mutually bemoaned rigid positions -- I would like to raise the question about the way the discourse is carried out: The respective positions seem to be so utterly convincing to each side that they can't describe the opposing side in other than uncompromising terms of ideological rigidity (understood as 'stupidity' and even 'deviousness' by the members of the own tribe and legitimizes them to not even try to understand the other ...) or greed or addiction to power etc. Thus the voters are led to make those questionable decisions that are now recognized as problematic. How were those voters persuaded to vote? Why is it that the oh so rational arguments each side thinks it commands cannot be presented in the political discourse in a more effective, less counterproductive, less divisive way, a way more conducive to learning from mistakes (in time), inventing better strategies, better cooperation for those tasks that we know can only be done cooperatively, leaving the innovation- and efficiency-improving competition to their appropriate areas. In other words: could the problem be with the way the discourse is organized? And perhaps we should look at how that might be improved?

Private Reply to abbeboulah

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