Ring the Bell

Ron Getty

Vice Chair

Chair - Initiatives Committee

The California state budget took an $11.2 billion deficit nose-dive just after the ignominiously delayed $143 billion annual budget was approved purportedly fixing an $18 billion deficit. In comparison, ten years ago California’s budget was $42 billion with no budget deficit.

The proposed budget deficit fix raises and broadens sales taxes, increases fees, imposes an oil tax and raises excise taxes on beer, wine and liquor. It cuts K-12, UC and CSU education funds and requires state employees to take un-paid time off. These political geegaws, gimcracks and doodads don’t fix a budget.

We can fix the budget problem by ringing the bell. Ringing the bell? A classic question is - If you rang this bell and taxes disappeared would you ring the bell? Let’s ring the bell for examples of how to cut taxes and spending relief for some taxpayers.

California State employs 345,000 whose income averages $85,000 annually in pay and benefits, costing taxpayers $29 billion. In comparison, private industry per capita pay and benefits average $45,000.

Scale California state employees' pay and benefits to an average equal to private industry's pay and benefits. This $40,000 reduction per state employee cuts the budget by $13.8 billion.

The Department of Consumer Affairs sets licensing standards for 225 professions from accountants to veterinarians. Its budget is $251 million and covers 2.4 million professionals. Charge an annual licensing fee of $105 per professional and save the taxpayers $251 million.

California could "farm out" prison labor. Offer some 125,000 nonviolent prisoners at $10 an hour for agricultural labor. This would generate $2.5 billion cutting the Department of

Corrections budget in half.

The University of California system and the California State University system together receive $6 billion from the state’s general fund.

UC has an endowment of $9.6 billion and CSU an endowment of $900 million. The UC system received $1.3 billion in combined annual donations and the CSU system received $326 million in contributions. Contributions for both come from other sources like student fees, tuition loans, grants, private businesses and the federal government.

Cut the taxpayers umbilical cord for these two college systems. Let them become self-reliant using their own financial resources. Don’t fund UC and CSU from the wages of low income taxpayers most of whom will never get a UC or CSU education from their forced philanthropy.

California’s 9,300 K-12 government schools have 300,000 teachers, with 25,000 bureaucrats and support personnel. There are 4,000 school psychologists and 1,000 school librarians. The California Department of Education has 2,500 employees.

The massive K-12 public employment project needs to be drastically streamlined especially when the price tag of pay and benefits is $20 billion. As an example, the 4,000 school psychologist cost some $300 million in pay, benefits and overhead. Dump the school psychologists and hire as needed by the hour – if really needed.

To help taxpayers, exempt families who homeschool or send their children to private schools from paying the portion of their property taxes which pays to send other peoples children to public schools. To help the elderly, exempt senior citizens from paying the portion of their property taxes paying to send someone else’s grandchildren to public schools.

Increasing the sales tax by 1 ½% balances the budget on the backs of low-income wage earners by increasing the average sales tax statewide to 10%. Sales taxes are regressive to low-income people taking a larger portion of their net income in relation to higher earning individuals. Any new sales tax should have a minimum floor of $100.00. At the very least, exempt food and clothing items from sales taxes for purchases under $500.00.

In our Depression Era like hard times, low-income wage earners need every penny they earn. Repeal income taxes for workers earning below the Federal Poverty Income Guidelines.

To increase the hiring of low wage workers repeal minimum wage, prevailing wage and various work laws governing breaks and hours. With state laws mandating wages unskilled laborers run into barriers against being hired increasing their unemployment and forcing them on welfare. If hired, many low wage workers agree to get paid off the books or under the table to get around minimum wage laws.

These few examples show the budget and deficit problems are a malignant cancer of unchecked massive redistribution of workers wages. The same workers who in turn receive little or no benefit from their earnings forcibly taken from them by taxes.

Taxpayers need to send a strong message to Sacramento where business as usual of increasing taxes and spending won’t be tolerated. Sacramento needs to cut taxes and spending as a necessity. To not do so is pure arrogant political hubris at the taxpayers’ expense.