THE STATE BUDGET wastes tax dollars -- and does it ever waste time.
The budget process begins in early January, when the governor introduces his spending blueprint. The Democratic-controlled Legislature cries foul, and various interest groups complain about misguided priorities. After a week of shouting, all sides return to their corners until mid-May, when a revised version of the January plan is unveiled.
Nearly five months thrown away.
Then the fun begins. Because the fiscal year begins July 1, lawmakers have about six weeks to reach an accord with the governor. This rarely happens, so negotiations drag on through the summer until both sides agree on a plan that neither is terribly wild about.
Seven months of wheel spinning produce mediocrity.
If Proposition 76 passes, and Gov. Arnold Schwarzenegger has the power to gain greater control over the budget, the above scenario would change in three ways.
First, real-time budgeting would occur during those seven months. More frequent snapshots of the state's fiscal health -- every two to three months instead of January and May -- would be taken. The governor could speed up the pace by introducing budget revisions every two to three months. Interest groups eager to frame the debate in their terms would increase their activities. All this would make budget negotiations in June and July easier.
A permanent campaign cycle is more likely under Proposition 76, as long as there are economic dips prompting budget cuts. But that wouldn't be much different from the current situation. Since taking over as governor, Schwarzenegger has campaigned almost nonstop for his pet causes.
The second change Proposition 76 would bring about is a needed reality check.
The revenue streams feeding the state budget are volatile. When the economy thrives, as it did during the late 1990s, money pours into state coffers. But when the dot-com boom went bust, the state was forced to borrow and raise taxes to maintain spending. Voters learned this the hard way in 2003, when the state's vehicle license fee was tripled to make up for a revenue shortfall caused by run-amok spending.
In a Proposition 76 Sacramento, lawmakers faced with spending cuts would have to reexamine their priorities. That would be a problem for the Democrats who control the Legislature. Given a choice of trimming expenditures or raising taxes, they reach for the latter. But they're currently double-booked.
