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Protests, Boycotts and Word Wars...Budget Impasse Continues

Protests, Boycotts and Word Wars…Budget Impasse Continues
Failure to resolve California’s estimated $24.3 billion deficit prior to the start of the new fiscal year, which began on July 1, resulted in State Controller John Chiang issuing IOUs to cover state expenses. Further, the failure of our elected leaders to come to a resolution before the deadline has caused a greater schism between them. As a result, budget negotiations have deteriorated. Governor Arnold Schwarzenegger’s demand for additional budget cuts, suspension of Proposition 98 (the voter-approved funding mechanism that mandates state spending on education) and budgetary reforms has outraged Democrat legislators and special interest groups.
During Sunday’s discussions, after Governor Schwarzenegger reiterated his demand for budget reforms to be part of any budget fix, the Speaker of the Assembly, Karen Bass (D-Los Angeles) walked out of the negotiations and began boycotting future negotiations. Speaker Bass stated that her boycott – refusal to participate in budget discussions – is in response to the governor insistence of “unrelated” budget reforms that she believes do not solve the now-estimated $26.3 billion deficit. Further, the governor’s desire to suspend Proposition 98 was, in her words an “unacceptable” option. In her opinion, the decision to boycott the meetings is no different than civil rights boycotts of the 1960s.
Since Sunday’s breakdown, the war of words has escalated between the governor, Democrat legislators and special interest groups. Governor Schwarzenegger continues to chide legislators for their refusal to solve the structural problems that keep the state mired in budget impasses year after year. According to Schwarzenegger, “Their (the Legislature’s) response to the budget problem that we have was really not a response at all; it was just really an invitation to create even a bigger budget crisis.” Democrat legislators, conversely, repeated their frustration with the governor, citing his unreasonableness and inability to recognize the immediate needs of California and claiming he has wasted time and cost the state over $3 billion in savings.
While Governor Schwarzenegger and the legislature remain embroiled in conflict and inaction, special interest groups are taking action. Anti-tax groups continue their radio and media campaign opposing proposed tax increases. Health and education groups continue to organize protests at the State Capitol against budget cuts. Yesterday, the California Teachers Association began airing political ads opposing Governor Schwarzenegger’s proposed Proposition 98 suspension.
The continued absence of Speaker Bass from budget negotiations and the parsing of words are indicative of a process that has fallen apart. At a time when leadership is greatly needed, true leadership and statesmanship is lacking. The inability of our elected officials to make tough decisions and resolve the budget impasse only increases the state’s deficit, and impacts California’s children and families more and more each day.
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