A New Progressive Strategy for California

Jerry Brown says that his new budget is designed to insure that there is “shared sacrifice” throughout the state, but this is false. California has twice as many millionaires as any other state in the union, and they are not being asked to make any sacrifices whatsoever. Their taxes will remain the same, even though the “sacrifice” required of them would only affect a few numbers in their bank account, and have no significant effect on their lifestyle. Furthermore, the sales taxes that Brown is fighting to keep (which the Republicans are calling “tax increases”, even though they are already in place) are proportionally the same for all income levels. Because 65% of all income growth between 2002 and 2007 went to the top 1 percent, (Atlantic Magazine Jan 2011) and the rich have benefited disproportionately from the post 2008 “recovery”, this is not an efficient way of getting where the money is.

Brown is assuming that there is no way to make these people take on their fair share of the burden. The Republicans have made the “No New Taxes” mantra an article of faith, and they can supposedly impose their will on the Democratic majority because of the 2/3 rule for revenue increases. There is, however, a secret weapon that is now available to the majority, if they decide to use it. The last election has now made it possible for a simple majority to pass a budget, even though two thirds are still required to approve revenue increases. In other words, the taxophobic minority can decide how big the pie is, but now the majority gets to decide how the pie is divided. This mean the majority can say to the minority “You don’t want to pay for Government? Then no government for you”. In other words, not a dime from Sacramento goes to any district whose representative refuses to vote for revenue increases. No public funded building projects, no libraries, no convention centers. Jerry Brown has plans which will increase his power to use Sacramento money as carrots. He wants to transfer more responsibilities to the states, and then send revenue to the individual cities and counties to perform what were formerly state government duties. There is however, an opportunity for using sticks as well as carrots. Transfer the responsibilities to every county and/or city, but only send money to areas whose representatives are willing to vote for revenue increases. Let the Republican districts pay for these responsibilities with local tax increases, or do without.

There are two possible outcomes that can arise from this action.

1) The Republican Districts stoically tighten their belts and deteriorate into little western approximations of Somalia, with little or no functioning government. I don’t think this is very likely, but even if this happens the rest of us will still be able to use the extra revenue to keep our parks and schools open.

2) The people in those districts will protest that they are being unfairly treated, and demand their services back. The rest of us then say “Write to your representative and state senator and tell him or her to vote for revenue increases. If they refuse, replace them next term with someone who will take a realistic approach to revenue issues. Until you do this, the fairest place to make government service cuts is to those who think that government is unnecessary.”

I can regretfully understand why President Obama has been forced to compromise with the new Republican majority in congress. Governor Brown, however, is under no such pressure. California withstood the nation-wide Republican onslaught by electing no Republicans to statewide office, and electing fewer Republicans to the statehouse. It is absurd and unjust that a minority perspective that has been decisively defeated at the polls should continue to maintain a stranglehold because of the two-thirds rule. In a recent poll, California voters were asked if we should “increase state funding for California’s community colleges and public universities.” 82% said yes. To call this approval “overwhelming” is an understatement. Those extremists who have repeatedly cut state funding for public colleges are clearly out of sync with the rest of the public. They have forced their will on us for decades because of the old budget rules. Now that the majority controls the budget, we can take back the power of self-government. They have never compromised with us, and now there is no need to compromise with them. It is time to play hardball.