Shock Therapy for California?

Arnold Schwarzenegger’s decision to slash an additional $1 billion from social programs like child care and CalWORKS after a record-long budget stalemate of 100 days is another example of the fiscal austerity measures that are turning California into a Third World country.

In a statement explaining his recent line-item vetoes, Schwarzenegger said that he was trying to “build a prudent reserve” or rainy day fund.

The purpose of a rainy day fund is to provide cash in lean times or in an emergency.

With unemployment at 12% in California and record rates of poverty nationally, it would seem obvious that now is the time to tap that rainy day fund.

Instead, what Schwarzenegger has done is to siphon off money from the programs and institutions designed to protect us in the worst of times in order to save money for that rainy day fund.

This disturbing development is a preview of what Californians can come to expect, if Schwarzenegger gets his way, and voters are duped into backing yet another of his stale proposals for restricting state revenues on the ballot next year.

Should this happen, the end result would be a steady evisceration of the state’s network of social structures, something that Schwarzenegger has been trying to accomplish over the years by using his line-item veto on funding for child care, special education, and public health programs.

Instead of trying to resurrect an idea that voters soundly rejected in 2009, Schwarzenegger and the legislature should be concentrating on getting big business to pay its fair share by eliminating the billions of dollars of subsidies the state is handing out to multinational corporations.

A recent article by the San Francisco Chronicle’s Washington correspondent Carolyn Lochhead found that Sacramento could produce an annual budget surplus by simply closing loopholes in California’s tax code.

Instead, the Democratic majority has been capitulating to Republican demands to reduce taxes for multinational corporations and big business in exchange for obtaining political agreement on budgets that are transforming California into a Third World country.

As part of the 2010 budget deal, $200 million worth of subsidies were granted to cable TV companies and the timber industry, while corporations evading their income tax obligations were rewarded with reduced penalties.

In 2009, the California Budget Project (CBP) reported that Democratic leaders agreed to permanently reduce the income taxes of multinational corporations operating in California, a move that is costing taxpayers almost $3 billion in revenues over the next five years.

Although $1.2 billion of these corporate tax breaks will be delayed as part of this year’s budget deal, the smartest thing to do would be to permanently repeal those tax giveaways.

This is because similar measures enacted since 1993 to win over Republicans intent on obstructing passage of previous state budgets have already cost California taxpayers at least $12 billion.

And this has been going on for 30 years.

Fortunately, voters this November will have the power to reform California’s dysfunctional budget process.

They can pass Proposition 24 to repeal the $1.2 billion worth of corporate tax giveaways, and they can pass Proposition 25 to change the requirement for passing a state budget from two-thirds to a simple majority.

These common sense reforms will go a long way toward helping California escape from the Third World mediocrity to which it has descended.

WILLIE L. PELOTE, Sr. is an Assistant Director of the American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO. AFSCME is the largest public sector union in the country representing 1.4 million members nationwide.

More articles by:
Weekend Edition
April 03, 2020
Friday - Sunday
Omar Shaban
Gaza’s New Conflict: COVID-19
Rob Urie
Work, Crisis and Pandemic
John Whitlow
Slumlord Capitalism v. Global Pandemic
Jeffrey St. Clair
Roaming Charges: Strange Things Happening Every Day
Jonathan Cook
The Bigger Picture is Hiding Behind a Virus
Paul Street
Silver Linings Amidst the Capitalist Coronavirus Crisis
Evaggelos Vallianatos
The Control of Nature
Louis Proyect
COVID-19 and the “Just-in-Time” Supply Chain: Why Hospitals Ran Out of Ventilators and Grocery Stores Ran Out of Toilet Paper
Kathleen Wallace
The Highly Contagious Idea
Kenneth Good
The Apartheid Wars: Non-Accountability and Freedom for Perpetrators.
Andrew Levine
Democracy in America: Sorry, But You Can’t Get There from Here.
Ramzy Baroud
Tunisia Leads the Way: New Report Exposes Israel’s False Democracy
David Rosen
Coronavirus and the State-of-Emergency Pandemic
Matthew Stevenson
Will Trump Cancel the Election? Will the Democrats Dump Joe?
Ron Jacobs
Seattle—Anti-Capitalist Hotbed
Michael T. Klare
Avenger Planet: Is the COVID-19 Pandemic Mother Nature’s Response to Human Transgression?
Jack Rasmus
COVID-19 and the Forgotten Working Class
Werner Lange
The Madness of More Nukes and Less Rights in Pandemic Times
J.P. Linstroth
Why a Race is Not a Virus and a Virus is Not a Race
John Feffer
We Need a Coronavirus Truce
Thomas S. Harrington
“New Corona Cases”: the Ultimate Floating Signifier
Victor Grossman
Corona and What Then?
Katie Fite
Permanent Pandemic on Public Lands: Welfare Sheep Ranchers and Their Enablers Hold the West’s Bighorns Hostage
Patrick Bond
Covid-19 Attacks the Down-and-Out in Ultra-Unequal South Africa
Eve Ottenberg
Capitalism vs. Humanity
Nicky Reid
Fear and Loathing in Coronaville Volume 2: Panic On the Streets of Tehran
Jonas Ecke
Would Dying for the Economy Help Anybody?
Jeff Mackler
Capitalism is the Virus!
Andrew Moss
Incarceration, Detention, and Covid-19
Farzana Versey
Prayers, Piffle and Privation in the Time of Pandemic
Will Solomon
In the New Dystopia
Dean Baker
The Relative Generosity of the Economic Rescue Package: Boeing vs. Public Broadcasting
Dr. Leo Lopez, III
We Need a Lot More Transparency From the CDC
Kollibri terre Sonnenblume
Reflections on a Glass of Homemade Cider
Rashid Nuri
Homegrown Crisis Response: Who Grows Your Food?
Mark Luskus
Worst Case Scenario: Healthcare Workers Need Masks, ASAP
Volker Franke
The Virus That May Bring us Together
Mitchell Zimmerman
A Q & A on the GOP’s Call for Elder Sacrifice
Olfat al-Kurd
COVID-19 Could Be Catastrophic for Us: Notes From Gaza
Eileen Appelbaum - Roesmary Batt
Hospital Bailouts Begin…for Those Owned by Private Equity Firms
Nabri Ginwa
Jill Richardson
Efficiency vs. Resilience
Lee Ballinger
Eddie Van Halen and the Future of Humanity
David Yearsley
Beset by Bach
Robert Koehler
Developing a Vaccine Against War