The Margett Minute: January 22, 2008

To reduce the state’s $14.5 billion deficit, Governor Schwarzenegger has called for spending reductions of up to 10 percent in every government program. The reductions will result in state park closures, suspending mandatory education spending, and fewer agriculture, childcare, and senior center inspectors—impacts that will be felt by all Californians. With such a monumental fiscal shortfall, it is critical to understand how we got here to avoid repeating that history.

First, we must look at the facts. This crisis is not an issue of insufficient income. State revenues are up dramatically--$27 billion over the past five years--despite a housing market slump and a feared economic slowdown. With revenues up, it is hard to understand how the state can be facing such a large deficit. However, just like with our own personal finances, if lack of income isn’t causing the problem, then excessive spending must be.

Nevertheless, unlike personal finances, the state cannot simply reduce what it spends when a deficit occurs. Voters, through ballot measures, and legislators, through special interest laws, have established automatic funding formulas that mandate state spending requirements. In some cases, the formulas call for increased payments regardless of the state’s revenues or spending in other categories. These spending mandates have led to the budget’s out-of-control growth. Unfortunately, suspending these spending formulas is extremely difficult.

Adding to the frustration is that even when Capitol leaders know the state has a multi-billion dollar budget deficit, it is extremely difficult to adjust mid-year. Some will argue that Proposition 58, the 2004 California Balanced Budget Act, addressed this problem. Proponents of the measure argued that it would “force the Governor and the Legislature to work together to find a solution to the problem before it is too late.” Under Proposition 58’s provisions, in dire budgetary conditions, the Governor can call a fiscal emergency and hold a special session to address budget problems. The Legislature then has 45 days to address the budget crisis or it will be prohibited from acting on any other bills or adjourning in recess until budget legislation is passed.

The big problem with relying on this measure is that it encourages the Legislature to do nothing because politically it is the easiest action to take. By doing nothing, key associations, special interest groups, unions, and businesses who want their share of the budget will continue to receive funding. The only true losers in that scenario are the taxpayers who will have to cover the large deficit, as well as those who rely on state assistance and will have significant reductions in services in July when the new budget is passed. Putting off the difficult decisions until July may be politically expedient, but it costs Californians significantly.

We should not and cannot wait until July to address the problem. Instead, we need to tackle the problem head-on. That’s why the Legislature needs to seriously examine the Governor’s spending reduction proposals and begin budget negotiations now. While I do not personally agree with all the proposals, especially letting prisoners out early, a majority of these reductions can be enacted.

The budget process must be stabilized to reduce the significant peaks and valleys our state has recently experienced. In lean years, the state must prioritize its programs so that essential services are covered while still trimming down debt. We also need to establish a fiscal reserve in robust years to help pay for needed state services when revenues fall. Taking these steps will help smooth the state’s budgetary rollercoaster ride and ensure adequate funding for vital services.

Most importantly, it puts state government in line with California families. Businesses and families save money from good years to cover lean times. Additionally, families prioritize when times are tough to pay vital bills, like house payments, utilities, and food, while cutting back on entertainment and eating out until the money is no longer tight.

The state needs to do the same thing. While we protect our most needy Californians, we also need to balance our budget. If we continue to rely on mandatory spending formulas, or choose to fund politically expedient programs despite the fiscal reality, the Legislature will lead the state into bankruptcy.

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Around the District

December was a busy month for me here at home. On December 11, I had the privilege of helping open the first Liquefied Natural Gas (LNG) truck fueling facility at the Ports of Los Angeles & Long Beach. I am very encouraged by the work the ports are doing to help make alternative fuel sources a reality for California’s truckers and motorists.

Later in the month, I hosted my annual Christmas parties for the Los Angeles County Probation Camps Afflerbaugh/Paige, the Le Roy Haynes Center, and the David & Margaret Home, all located in La Verne. Working with children is especially near and dear to my heart, and I have been fortunate during my term as a State Senator to have had the opportunity to bring some holiday joy to these kids. I want to thank the California Highway Patrol for their generous donation of toys to the Le Roy Haynes Center.

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2008 Education Summit

On January 24, I am pleased to host, along with Assemblyman Bob Huff, the 2008 Education Summit. This year’s Summit will take place at Citrus College’s Campus Center, and will kick off at 6 p.m. sharp. Our speaker this year will be Dr. David Long, California’s Secretary of Education. With many significant issues surrounding education in California, I know it will be an interesting and enlightening discussion, and look forward to seeing everyone there. For further information about the Summit, please contact my District Office at (626) 914-5046.

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La Habra School CIF Champs

The Highlanders of La Habra High School took home the 2007 CIF Football Southeast Conference championship in early December by beating Fullerton High School 16 – 6. The Highlanders finished the season 13 – 0, the first undefeated season in team history. Congratulations La Habra High School!

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Superior Court Launches Website

The Los Angeles County Superior Court recently dedicated a website for their ongoing community outreach efforts. By accessing the Court’s website at www.lasuperiorcourt.org/OUTREACH, those interested in learning about community involvement by the court can find instant information about their school involvement and Speakers Bureau activities. I applaud the Los Angeles County Superior Court for their outreach efforts.

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California Mentoring Opportunities

During the month of January, we celebrate National Mentoring Month. It has been shown that young people who have mentors are more successful in school, and are much less likely to get involved with alcohol and drug use. The best way to find out about mentoring opportunities in your community is to access www.CaliforniaVolunteers.org. This website, offered by the Governor’s Office of California Volunteers, features the nation’s largest online volunteer opportunity matching network in the nation. I encourage all Margett Minute readers to become a mentor to a young person, and help positively shape their future.

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Senate Fellowships Available

I am pleased to announce the availability of applications for the 2008-2009 California Senate Fellows Program. The program provides college graduates an opportunity to become full-time Senate staff members at the State Capitol for 11 months beginning in October 2008. Fellows are assigned to the personal or committee staff of a Senator and also participate in academic seminars with Senators, senior staff, journalists, lobbyists, and state government officials. The program is jointly operated by the California Senate and the Center for California Studies at California State University, Sacramento (CSUS).

Fellows are paid a stipend of $1,972 per month plus health, vision, and dental benefits. They earn 12 units of graduate credit from CSUS for the academic portion of the program. Some responsibilities of the Fellows include researching public policy issues, helping develop legislative proposals, and assisting with constituent inquiries and casework. Anyone who will be at least 20 years of age and a graduate of a four-year college or university by September 1, 2008, is eligible to apply. There is no preferred major. Individuals with advanced degrees and those in mid-career are encouraged to apply.

Applications may be requested from my office at 2605 E. Foothill Blvd., Suite #A, Glendora, or by calling 626-914-5046. Applications and brochures are also available on the CSUS web site (www.csus.edu/calst/senate). The deadline for submitting applications is February 27, 2008. Eighteen Fellows will be selected in May after an initial screening of applications and a subsequent panel interview of finalists.

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