Monday, June 20, 2011

Jerry Brown's Budget Soap Opera

At Wall Street Journal, "As Sacramento Turns":

'All My Children" may be off the air, but the soap opera is still running in Sacramento. In the latest installment, Governor Jerry Brown divorced his fellow Democrats by vetoing their budget. Democrats and unions are furious and plotting revenge, while both sides blame the evil Republicans for refusing to sanction a referendum that would give voters a chance to endorse a tax increase.

Where's Susan Lucci when you need her?

Mr. Brown deserves credit for vetoing the Democratic budget that reverted to Sacramento form to close a $9.6 billion deficit, deferring several billion dollars of bills into the future, borrowing from special funds, and raising the state's sales tax and vehicle registration fee without the constitutionally required supermajority vote. Even the Democratic treasurer warned that the state couldn't finance its short-term debt with such a risky plan, and Mr. Brown cashiered it.

Democrats are now blasting him for suggesting that an "all cuts" budget is the only alternative if Republicans won't agree to allow a vote on a five-year extension of what was supposed to be a temporary income tax surcharge, among other tax hikes. Democrats are frustrated because they expected Republicans to cave months ago. But Republicans have shown laudable discipline, and they know that their relevance in state politics hinges on extracting concessions from employee unions that will reduce the future cost of government.

Mr. Brown needs at least two GOP votes in each chamber to put the tax increases on the ballot. And Republican lawmakers have said for months that they're willing to do so in return for modest pension and regulatory reforms and a hard spending cap.
More at the link.

Unions are basically killing any deal, even one that includes GOP concessions to Jerry Brown tax increases.

RELATED: At Instapundit, "SHOCKER: Companies Leaving California In Record Numbers."

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