Majority Vote Budget and 2/3 for Taxes: The Worst of Both Worlds

Joe Mathews's picture
Journalist and Irvine senior fellow at the New America Foundation. He is co-author of California Crackup: How Reform Broke the Golden State and How We Can Fix It (UC Press, 2010).

California's budget process is broken. Democrats use their majority to spend as much as they can. Republicans use their leverage under the two-thirds requirement for budget and taxation to block the taxes needed to pay for that spending. At budget times, this produces delay and last-minute compromises that merely serve to push problems into the future.

Word is that the folks at California Forward (and an increasing number of good government types) say they want to change this system - by eliminating the two-thirds requirement for budgets (to a majority) while preserving the 2/3 requirement for taxes. Among the various explanations I've heard for this, the one most oft-repeated is: budgets, which last only a year, should be easier to pass, but tax increases are open-ended (except when they're not, as in this year's temporary increases) and should be harder. There's also a political explanation. California Forward is trying to avoid opposition from Republicans.

The problem? This half-measure doesn't change the system. It preserves it. In fact, changing the vote requirement for the budget and not taxes would embed the current dysfunctional dynamic even deeper in our legislative politics.

With a majority vote budget, it'd be even easier for the majority Democrats to enact their spending priorities. And for minority Republicans, having lost their leverage on the budget, they would hold on even tighter to their 2/3 leverage on taxes and block the revenue increases needed to pay for Democratic spending priorities and balance the state books. It seems reasonable to assume that under California Forward's system, the state's persistent budget deficits would grow in size.

In other words, this system gives us the worst of both worlds - unchecked Democratic spending and more Republican intransigence on taxes.

The basic problem in our system is not delays. That's a symptom of the real problem, which is lack of accountability. The majority party doesn't own the budget - both parties are responsible, since it requires Republicans votes. It's a dodge to try to change the budget rules without the tax rules. Taxes are part of the budget-the two issues are indivisible. To restore accountability to budgeting, you have to give the legislative majority ownership of the budget that includes ownership of taxation. Any problems - too high spending, too high taxes - will be the fault of the party in power. And then voters can punish them.

This half-measure (changing the vote on budget not taxes), by preserving the current dynamic, would be worse than no change at all.

Heck, if the folks at California Forward are committed to half-measures, they should do the exact opposite of what they now propose. Switch to a majority vote for taxes, but keep the two-thirds vote for spending. This might produce a deficit hawk's paradise. The Republicans would have the two-thirds leverage to block spending (good for the health of the budget) while Democrats would find it easier to raise taxes (also good for the health of the budget).

Joe Matthew's response

Right on, Joe. Cal Forward proposes improving fiscal accountability by retaining the 2/3 vote??? It proposes to strengthen the role of local government without confronting Prop. 13, which is most responsible for centralizing decision making in Sacramento??? Pure, unadulterated Pablum!!!

The real truth about how California got to this mess.

Go to Tom Mcclintock's website he gives a history of mistakes of past and present Governors and represntatives From Both parties. Short and to the point.

Some right, some wrong

Joe is correct that allowing a majority vote for budgets while maintaining the 2/3's requirement for tax increases would create even more deficit problems for the reasons he listed.

However, the notion that allowing the majority party in this state "Ownership" of the budget, and of new taxes, would create any real accountability is laughable.

Though he overlooks it here, Mr. Mathews is quite aware of the fact that competition for legislative seats in the California State Legislature is sparse at best. With the level of gerrymandering of legislative districts, accountability to the voters is not much of an issue for most members of the Assembly and State Senate. Sure, many members of both parties helped create this situation, but that does not change the fact that it exists.

For these reason, the voters of this state need to vigorously defend the 2/3's majority rule for both budgets and tax increases. At the VERY least, they must do so until we see some positive moves in the next re-districting. Unless we get to a point where most, if not all, legislative districts are genuinely competitive among candidates and parties, abandoning the 2/3's rule for either budgets or tax increases would be disasterous for Calfornia taxpayers and businesses.

OK, Let's judge it on its entirety

Commenter Ash says my scenario is wrong. How exactly? He says let's look at the entire California Forward package. Ok, let's. 1. Pay as you go budgets. Interesting idea. Hardly a panacea. We've had pay as you go budgeting at the federal level. How's that working out? 2. Performance based budgeting. Great concept. Devils in the details. Not a game changer unless it's tough and real (and the sheer madness of majority vote budget combined with 2/3 taxes doesn't give me confidence). 3. Two year budget. A terrible idea in the current system. Gives legislators even more room to do gimmicks and disguised borrowing. 4. No one-time expenditures. Absolutely meaningless without a real rainy day fund. Which is not included in the entirety of the budget package. 5. majority vote budget while maintaining 2/3 for taxes. (See my column above). Locking the current system in deeper. 6. Fee "certainty." This is another huge step back--it locks the 2/3 for revenues requirement even deeper--by covering fees as well. All the problems of the status quo, only more so. LOcAL GOVT: Ca Forward has three proposals for giving locals more control over funding. That's fine. None of it changes the fundamental problem in the state--a lack of majority accountability for budget and taxation. "CONSTITUTENT ACCESS AND ACCOUNTABILITY" -- These are both a joke. 1. Would reduce term limits from 14 years to 12 years in the legislature (letting a legislator stay in one house for the time). This is a great idea if you think term limits have been a success. Yet another rearrange the deck chairs on the Titanic proposal. 2. Requiring legislators to spend more time in their districts... This is a solution in search of a problem. Legislators spend plenty of time in their districts. And when they're in Sacramento, they don't do much -- like pass balanced budgets, on time. What's missing from the package? Just about everything. Any real legislative reform (like changing the size and composition of the body). Ballot initiative reform (California Forward's package doesn't include a thing). Electoral reform. Campaign finance reform. And tax reform that would benefit the state's economy and its government. Remind me what the point of California Forward was again?

2/3rds vote on taxes; majority vote on budget

How can you have a majority-approved spending plan with the power to raise revenues blocked by a minority? Sorry, but the two are inextricably linked and the Cal Forward proposal is foolishly unresponsive. As Mr. Matthews states, it empowers those criticized for being big spenders able to spend all that is available when revenues are flush without new taxes, and it empowers the tax-cutters to block new revenues in even the most dire situations. On the whole, Cal Forward's proposed "reforms" seem like pure window dressing.

Split the Stae in2 to fix the problems

California is broke. End of story. In it's current state it is ungovernable with too many competing interests. Northern Californians want to impose their ideaology on Southern California and Southern Califorina wants to do the same to the North. End the nonsense and split the state into two new states and let each state govern as they see fit. After a few years everyone will see whose ideaology creates a state one would want to live in with a government that lives within it means.

2/3 for taxes; 51% for budget

We have more people in California who get money or benefits from the state government above the basic services that exceed the amounts they pay in taxes than those that get nothing more than the basic services (roads, police, fire, schools, etc.) and pay much more in taxes. As soon as we reached the "more than 50% takers" it became wrong to have a simple majority decide to raise taxes on the minority who pay them. If you benefit from the services higher taxes provide, but don't pay the taxes, of course you would support raising them. The problem is the spending. I repeat, the problem is the spending. 2/3 should stay.

I don't think so

The "worst of both worlds" scenario that Mr. Matthews paints is wholly inaccurate. California Forward has offered a comprehensive plan that should be judged on its entirety. Matthews might think its a half-measure, but it looks to me to be the most significant, feasible plan that has come out of Sacramento in decades. Take a look for yourself at http://www.caforward.org/tasks/sites/default/assets/File/CF_Reform_Fact_...



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