Coming soon, to a polling place near you, more ballot measures to raise your taxes.
According to Gov. Jerry Brown this state is headed into a projected budget deficit of $15 billion. Brown is pushing for approval of Proposition 30 and warns that if "we" don't raise the State sales tax by a quarter percent and raise income taxes to individuals making more than $250,000 per year - well - funding for schools and social services will have to be cut again.
Marina residents are familiar with this taxing technique. It was not all that long ago that Marina proposed a 1% sales tax increase and a 2% transient occupancy tax under the threat that budget cuts would lead to massive loss of police and fire services thus placing a loaded gun to the head of the electorate with the warning: "vote for more taxes or else!"
But there's more.
You can vote for Proposition 38 which is advertised as an "Education Investment Act" implying these funds will go directly toward local schools. It increases everybody's tax rate on a sliding scale, starting at .4 percent for people earning more than $7,316. Governor Brown's Prop 30 increases personal income tax on earnings over $250,000 for seven years and the quarter percent sales tax increase for four years with an estimated $9 billion increase in revenue; however, Legislative analyst's estimate the revenue potential at $6.8 billion.
Those pushing for Prop 38 claim their tax measure will produce $10 billion per year. The drawback is this tax remains in force for twelve years. During the first four years, this measure allocates only 60% of revenues to K-12 schools, 30% to repaying the state debt, and 10% to early childhood programs. After four years 85% of revenues would go to K-12 and 15% to early childhood programs.
One wonders, if there is a California deficit of $15 billion, how is allocating all these funds toward the school system going to solve all that red ink? Is it possible that, as these new funds are applied to the school system, someone is deducting a like amount from the back end of the school budget in order to solve the State's $15 billion deficit?
The current allocation of funds for K-12 schools is a massive $68.4 billion for the fiscal year 2012-13; of this, $37.9 billion comes from the State's general fund. None of this funding applies to State colleges and universities. Many college students have mortgaged their future by as much as $100 thousand or more under current conditions so that threats of additional educational cost cutting measures could force abandonment in favor of a job.
There is also a massive potential debt that is not included in the reported $15 billion deficit. There is an estimated $40 billion to bring drinking water up to federal standards, $8 billion in delayed payments to schools and community colleges, and $250 million that was raided from the transportation fund and treated as revenue. None of this includes irrevocable promises to provide pensions to public works, health care obligations for retirees and delayed highway maintenance. The undeclared burden of debt could total $167 billion, at the very least, or as much as $335 billion.
No one is mentioning California's huge prison costs. It costs California $50,000 per inmate per year; whereas, Texas' per cost runs around $15,000. Excessive overtime pay is not limited to the prison system and often is used to "spike" or enhance retirement income. It is a common practice for administrative personnel to take huge pay raises in the face of huge budgetary deficits. Monterey County has experienced, first hand, the excessive $35,000 per month cost to house Mr. James Lamb, a violent sex offender. This financial abuse went on for nearly two years until Mr. Lamb's apparent failure to register as a sex offender landed him back in jail.
It is obvious our State government is out of control. It would appear the California voter needs to make a change. Maybe new taxes aren't necessary if an effort is made to elect down to earth problem solvers who are willing to eliminate the outrageous rip-off of the public trough.