I came across a terribly interesting article in the San Jose Mercury News on the root causes of California’s financial crisis. It turns out that state spending has increased more over the last five years than have the population and inflation. In other words, it’s not just a growing population or a decrease in the value of the dollar that can explain the budget deficit. In fact, more than $10 billion is unaccounted by those factors.
So, the reporter concludes, it’s an increase in services that is to blame for the shortfall. Looking at the data, increases in prisons and hospitals, and decreases in DMV fees are the main culprits. But at a deeper level, the problem is that many of the policies that required the increases (e.g. expanded health care coverage, three-strikes laws, etc.) were ballot measures. Take those out (and a few court cases the state lost) and the budget shrank – after you adjust for inflation and population growth.
In California, a simple majority (either of voters or state legislators) can expand or create new services, but raising taxes requires a two-thirds majority (CA Constitution, Article 13A, Section 3). Does anyone else see a problem with this?
Now for the choice quotes:
“Everybody’s got somebody to blame, but in the end these are services people wanted,” [said Stephen Levy, director of the Palo Alto-based Center for the Continuing Study of the California Economy].
[...]
“The spending is not out of line. It’s what voters wanted, and some programs grow faster than the rate of inflation,” said Jean Ross, executive director of the nonprofit California Budget Project.
What I hope they mean here is that the government isn’t out of line by doing what the voters asked, but, in my opinion, the spending itself is. It’s OK to want a big house and a car with an iPod jack. It’s not OK to go buy those things when you cannot afford them. But that’s just what the state has been forced to do by the voters.
“Our society is moving in the direction of, ‘I want more from government but I don’t want to pay for it,’” [Mike Genest, the Governator's state finance director] said. “Right now we have leaders making hard choices out of necessity, and we need to continue that.”
Could it be that the current state of our governments, both local and national, actually reflects the irresponsible actions and habits of We the people? Maybe it’s time we all start making choices out of necessity.