GOP Claims Victory In Calif. Budget

SACRAMENTO, Calif. (AP) — Republican lawmakers are claiming victory after the state budget passed last week without a single GOP vote because the plan did not include the Democrats’ top solution — a renewal of the higher income, sales and vehicle taxes approved two years ago.

But not every conservative is popping a bottle of California sparkling wine in celebration: While they held fast to their no-tax pledge, GOP lawmakers also lost a historic chance to secure their top priorities: scaling back state employee pensions; imposing a state spending cap; and making business-friendly changes to California’s regulatory and environmental laws.

Republicans hope to pin the blame for massive spending cuts to social programs and higher education on Democrats, while claiming credit for holding the line on taxes. Assembly Minority Leader Connie Conway, R-Tulare, stressed that the budget was “not ours.”

“They’re the ones that chose who got cut. They are the ones that made their priorities, and so if people are suffering and hurting, they need to contact the people that did that to them,” Conway said this week during an event to celebrate the expiration of a 1 cent addition to the state sales tax and another hike to the vehicle tax. “Our agenda was to put the money back in the taxpayers’ pocket.”

The majority vote budget came after Gov. Jerry Brown, a Democrat, conceded defeat in his attempt to persuade a handful of Republican lawmakers to support his plan to ask voters to extend for up to five years temporary increases in the sales, income and vehicle taxes.

In exchange for their votes to put the measure on the ballot, Republicans had hoped to put their own reform proposals before voters. But after nearly six months of negotiations, the two sides could not reach a compromise.

Instead, the deal Brown reached with Democratic legislative leaders contained billions of dollars in cuts to social programs and public universities and colleges, programs Democrats hold dear. They are assuming billions more in additional tax revenue than was forecast in January, but also built in immediate cuts if that money fails to materialize.

Union leaders and Democrats hope that as the deep spending cuts take effect, Californians will feel the impact and public opinion will shift toward supporting tax increases they hope to put on the ballot in November 2012. Those could include higher taxes on the wealthy and taxes on companies that pump oil in California, but there are no specific proposals yet.

Republicans could be saved by a rebounding economy. The Democratic budget relies on $12 billion more in revenue. If that is realized, voters might be reluctant to raise taxes, as public opinion polls suggest they are.

Yet any rollbacks to public employee pensions might now be left to Brown and his fellow Democrats in the state Legislature, leading to reforms that are far less sweeping than those sought by Republicans.

“We were prepared to go to the table and negotiate in good faith on a pension-reform package. We believed that a legislative package could be put out that addresses the voters concerns’ about spiking and things like that and closed loopholes … a reasonable package,” said Dave Low, president of a coalition of unions called Californians for Retirement Security.

“The Republicans appeared to not want to support any reasonable package. They missed out on their opportunity to have a voice in this process, and now they don’t.”

Gary Toebben, president of the Los Angeles Chamber of Commerce, also feels it was a missed opportunity. His group supported Brown’s proposal to extend the temporary tax hikes in exchange for structural reforms.

“The Republicans are calling it a victory because they believe that not extending the taxes, the higher tax rates, was good for the average Californian,” said Toebben, a Republican. “Our feeling is that the cuts that had to be made in order to balance the budget will long-term negatively impact K-12 education and higher education, and that’s a long-term investment.”

He said the state needs excellent schools and universities to be competitive.

So can Republicans count the budget as a win, loss or draw?

Thad Kousser, an assistant professor of political science at the University of California, San Diego, said the GOP successfully leveraged its only remaining legislative power by letting temporary tax increases expire on July 1.

“They were able to get nearly exactly the same kind of all-cuts budget they would’ve got if Meg Whitman had won the governor’s race,” he said, referring to Brown’s Republican opponent in the 2010 gubernatorial race. “In some ways, they got the best of both worlds. They got the policy they wanted, trimming government, without having to take the political heat for it.”

The GOP lawmakers’ mistake may have been in not agreeing early in the year whether they wanted to negotiate with Brown, many moderate Republicans outside the Legislature believe. In the end, just a handful of Republicans in the Senate ever entered serious talks with the governor.

Instead, Republican lawmakers offered conflicting messages and failed to lay out exactly what they were seeking in exchange for the votes Brown needed to call a special election.

Mitch Zak, a Republican political consultant who supported GOP lawmakers meeting with the governor, said Republicans should have laid out specific policy proposals on pensions, state regulations and a spending cap soon after Brown released his initial budget proposal in January.

Doing so would have forced Brown to publicly reject their plans or go against his powerful union allies, he said.

“Had they had that attitude at the beginning, I think they might’ve had some luck in getting the governor on their side. But there’s one big stumbling block that we can’t forget: The unions kept saying we don’t want to vote on pensions and spending limits,” said Joel Fox, a Republican consultant and editor of the Fox & Hounds Daily blog.

Fox was among Republicans who had urged GOP negotiations over the governor’s tax proposal.

It may be difficult to tell how voters respond to the Republicans’ approach this year.

The GOP has seen its clout in California fall, along with registration that is now below 31 percent, compared with 44 percent for Democrats and 20 percent for independents. Next year’s elections will be held under new legislative districts being drawn by an independent commission and the first widespread use of California’s new top-two primary system.

“They feel that they have raised their standing with the voters,” Fox said. “The trouble is, the test is going to come a long time after this budget decision is put to bed.”

(Copyright 2011 by The Associated Press. All Rights Reserved.)

  • JTW

    I wouldnt be so fast to start high fiveing each other Republicans. Due to your lack of participation, Demos had to made the decisions. If the Repuks had made the decisions, there would be nothing left except more people umemployed and on welfare and more money in the pockets of the rich. Your inability to work in a democratic forum just showed your true colors…

    • mark

      JTW stop drinking the koolaid

  • Old Hal

    Another reason why I would never ever vote for a GOP candidate. The “Just say NO Party” refused to take part in governing California and only tried to score political “points” if they could make Governor Brown and the Democrats look bad. Seems to me that with a GOP Governor the past eight years a budget didn’t get done until around January, 4 months late….I would not even vote for a Republican for Dog Catcher as they would start telling you that dogs are dogs only because they want to be, and then would place a limit on how many dogs could be placed in custody at the same time, cutting their feeding from twice a day to once a day to save a few bucks, and deporting those dogs without clear pedigrees and licenses….Wonder why the GOP Voter Registration is less than 30% in California?

  • BHH

    The Republicans have once again shown who they are trully trying to help. As a California registered voter (and a citizen) I personally cannot wait to vote as many of them out of office as possible. Then they really will feel the pinch when they don’t get their per diems (up to 140.00 per day) gas allowances and, oh,let’s not forget the salaries. I don’t think they realize that they have just solidified the contempt that they have bred during all this. I don’t blame the dems. I see them and the governor as being strong armed. Way to pass the buck. Problem is, everyone was watching what was actually going on. Republicans forget that while their friends with all the cash are happy as pigs in mud, that a large majority of Californians are unemployed, broke and struggling with what they have. Not to mention the voting age college students struggling to complete their educations. Did we forget about them? Of course. They don’t have any money. Why would they matter? Because they can VOTE! Time for government to be FOR the PEOPLE, BY the PEOPLE. Not big oil, big money and Republican failure. Remember who got us here in the first place. State and Federal.

    • Fred

      You make the point that all of the so-called disadvantaged groups are somehoe entitled to things they haven’t earned. This budget is a victory for no one. Everyone loses. From my perspective, what we saw was that the majority was willing to chop schools and public safety rather than angeer their union handlers. Wake up – the unions are bleeding the state dry.

    • Fred

      ” I don’t blame the dems. I see them and the governor as being strong armed.” – Yeah, by the public employee unions.

  • The_Truth

    I’m for the Republicans and will support them to the end in this matter, even though I vote independent since being disillusioned by the Democrats.

    The facts are if we do not get any form of Pension reform this state is doomed and will not survive, furthermore Brown knows this but he will not turn on those who help put him in office, furthermore he makes the matters worse by giving them more benefits like the recent Prison guard union which now can just store their vacation time till they retire, so instead of spreading out the damage over the years it will hit this state hard in 1 lump sum.

    the state Employees unions need to be curbed in and realise they get alot more then the private union groups do, when private unions investments went sour, they lost it, but when the state union investments went sour they demanded and got the state tax payers to reimburse them for a majority of their losses, thanks to Brown.

    • Amazed

      Disillusioned by the Democrats? How about sickened by their mantra of take from those who earned it and give it those that will vote for us. The Republicans are far from purfect, but they seem to realize that the answer to every issue is not raise taxes and spend more money.

  • Julie

    Just like Charlie Sheen….DUH, WINNING!!

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