June 23, 2011

Who Woulda Thunk It? Legislators Taking a Hit in their Wallets


by Ron Prentice,
Chief Executive Officer


Many of California’s state legislators are singing the blues.  Thinking they had submitted a “balanced” budget by the deadline of June 15, they’ve been told otherwise by State Controller John Chiang.  The passage of Proposition 25 last year was to accomplish two things:
  • Allow a simple majority (50%+) to pass a budget that included no new taxes, rather than the previously required 2/3rds of the Legislature.
  • Discontinue pay and per diem payments to legislators if they cannot submit a budget by the deadline, and until they do.
Proposition 25 was primarily financed by public employee labor unions – teachers, service workers, nurses and firefighters.  Those unions’ leaders trusted that, if a budget can be passed by a smaller majority (not requiring Republican votes), then union members’ would survive job cuts and pension reform.  Perhaps not.

Controller Chiang has stood up to these powerful forces, claiming that upon analysis of the submitted numbers, many areas of income are exaggerated, and borrowing from other funds borders on illegal.

Response from some legislators has been quick, and harsh.  Yesterday’s edition of the LA Times included these quotes:

"John Chiang just wants to sit there and beat up on the unpopular kids,"
Assemblyman Mike Gatto (D-Silver Lake), who at 36 is among the youngest legislators, said in a statement. "I now have to explain to my wife and daughter that we won't be able to pay the bills because a politician chose to grandstand at our expense."


Assembly Majority Leader Charles Calderon (D-Whittier) said Chiang had created a distraction by "playing to the headlines."
"He's now focused all the attention on himself so he'll have the next political move to become governor," Calderon said.


Calderon added, "Now it will require a lawsuit to educate him" on having overstepped his constitutional powers. A legislator-backed lawsuit challenging Chiang's ruling is widely expected.

Senate President Darrell Steinberg (D-Sacramento) said Chiang's move set a "terrible precedent" and would throw out of whack the balance of power between the branches of government. Governors and finance officials should not have the power to control the pay of 120 independently elected lawmakers simply because they don't like what those lawmakers produce, he said.

As Californians scratch their heads and snicker at the quarrels among the powers that be – Governor Brown, Controller Chiang, and the majority in the Legislature – it will likely require another initiative of the people to level California’s political playing field.
For example, see StopSpecialInterestMoney.com.