The Dilemma of Having to Choose

Authored by Steve Levy, Director, Center for Continuing Study of the California Economy

Whatever happens in the May 19th special election the state government and local governments throughout California will face continuing difficult budget choices for the next few years. Whatever happens in the May 19th election, the legislature and governor will need to revisit the recently adopted state budget because the deepening recession has pushed it out of balance.

A yes vote on propositions 1A, 1C, 1D and 1E will provide additional revenues to the state budget next year and in the following two years. Voting no on any of these propositions will increase the amount of the shortfall that will face the legislature and governor in June.

I would have drawn the budget agreement differently but just as pigs can’t fly, my budget would not have received a 2/3 vote. I am not a huge fan of the propositions (I do like the idea of a reserve fund) but I don’t see clearly a better outcome if we pass the full budget shortfall back to the legislature and governor. Perhaps other forum participants can give me a good reason to vote no because there is a practical better outcome.

The economy is causing most of the pain the and really bad choices we must pick from. The recession created the surging shortfall through falling revenues while service and investment needs continue to grow. The economy creates the pain but budget choices allocate the pain.

My state budget would have allocated the pain caused by falling revenues differently than the adopted budget. But I worry that the “my group is more deserving than your group” perspective on state budget choices doesn’t help Californians come together in common purpose and resolve. And the conflicting views of residents combined with the 2/3 budget voting rule also pose difficult obstacles for finding common purpose.

As I wrote in a paper for California Forward

While residents and leaders struggle to solve today’s crisis, we must find time to look to the future and plan for tomorrow…It is difficult to focus on the future when the present is so disturbing, but I am hopeful that we all can find energy and patience to thoughtfully prepare for a better future.

However you vote on May 19th I hope this forum can provide ideas for keeping the future front and center as we and other residents face continuing difficult and contentious budget choices.