Rather than showing leadership and resolve, Gov. Gray Davis and
the Democratic state legislature are making a mockery of the state
budget process
– and it’s bound to take a toll on our South Valley
communities.
Rather than showing leadership and resolve, Gov. Gray Davis and the Democratic state legislature are making a mockery of the state budget process – and it’s bound to take a toll on our South Valley communities.
Gilroy and Morgan Hill count on state vehicle license fees to varying degrees. Gilroy counts on VLF for 8 percent of its general fund revenues and, in Morgan Hill, the VLF represents 12.1 percent of the city’s general fund revenues. Santa Clara County relies on the VLF for a good portion of its general fund revenues.
Davis said Tuesday he would veto a measure that lawmakers have approved: an initial package of about $8.6 billion in budget cuts and funding shifts that is tied to enactment of a bill designed to trigger a vehicle license fee increase.
Although the vehicle licensing fee has been reduced in recent years from 2 percent of a car’s value to .65 percent, the state has made up the difference from what it actually collects and what local governments should receive – a practice called “backfill.” One of the features of Davis’ budget proposal is to stop paying local governments the VLF backfill.
Assembly Speaker Herb Wesson, D-Culver City, has authored a bill to triple the VLF as a way to deal with the $30-plus billion budget shortfall the state faces over the next 18 months. Davis’ decision to veto the bill is reportedly an attempt woo Republicans to support a bipartisan budget plan that would include tax increases, which conservatives oppose.
We think that’s the wrong reason to veto the Wesson’s bill to increase the vehicle licensing fee.
The right reason to veto Wesson’s bill is to send the message that the state legislature has put the cart before the horse. Tax increases of any kind – income, sales, cigarette or the VLF – should only come after the state has made deep and significant cutbacks and taken serious steps to end fraud, waste and mismanagement of taxpayer funds. In short, California needs to find its way to a much smaller, leaner and more efficient state government.
That means Davis needs to propose heavy cuts to the ballooning states’ prison system budget – despite the fact that he accepted hefty gifts from correctional officers unions. It also means he needs to consider releasing from the state’s prisons nonviolent offenders who maintain good behavior records.
The governor’s budget also includes an $8 million increase in spending for the Legislature. Unbelievable.
Every segment of government – including local governments – will and should be shouldering some of the burden ahead. But the Democratic governor and the Legislature should be leading by example. They’re not. And while the state’s credit rating is about to be downgraded, Davis and the Legislature are fiddling with horse-trading special interest politics. It’s absolutely shameful.
