From Senator Dutton . . .
Budget Continues to Dominate
As most of you are aware, Governor Schwarzenegger has called a special session of the Legislature to deal with the state’s budget deficit that is now projected to be $28 billion over the next 19 months.
The governor has proposed several tax increases including increasing the sales tax by 1.5 percent, taxing sporting events and adding a 5 cent per drink tax to name a few to budget the gaping hole between spending and revenue.
I think he believes calling a special session of the current legislation will make it easier to get some of these tax increases passed.
The governor has also changed his position and now says that California has a “revenue problem” not a “spending problem. I’d point out that spending during the governor’s first year in office was $76.3 billion and through the 2007-08 year has increased by nearly $26 billion to $102.2 billion. Maybe if we contained our spending over the last couple of years instead of going on a spending binge we wouldn’t be in the situation we are in today.
While I still believe that California continues to have a spending problem and that given the current state of California’s economy, raising taxes is absolutely the wrong way to go, I am still troubled that many in Sacramento believe there are only two ways of dealing with the situation – cuts or tax increases.
With California’s unemployment rate at 7.7 percent, and with it topping 9 percent in the Inland Empire, I am convinced the solution to our fiscal problems is through job creation and retention.
Over the years we have become a very unfriendly place in which to do business because of the unnecessary restrictions and burdens we have placed on business. For example, the Tax Foundation recently released a study that rated the Business Tax Climate in all 50 states and it showed California ranking 48th in the nation. Earlier this year, Forbes Magazine conducted their annual study of the best states in which to do business and California ranked 40th in the nation. The Small Business and Entrepreneurship Council conducted a study and ranked the best to worst tax systems and it should not be a surprise that California ranked 48th in the nation, including being ranked number one in having the highest unemployment tax rate and the highest gas tax in the nation.
I commend Governor Schwarzenegger for addressing California’s budget situation sooner rather than later. I am willing to work now on solutions that will make sure we can continue to fund the necessary programs that protect the most vulnerable in our state and at the same time do not place any additional tax burden on hard working Californians who are struggling mightily today.
My Own Economic Stimulus Package
This is the time of year when planning is in full swing for the pieces of legislation that will be introduced for 2009.
I have decided, given the current state of the economy and the stark reality that government has made it very difficult to do business in California, that the main focus of my legislative package in 2009 will be bills to help business develop and keep jobs in this state.
As I pointed out earlier in this report, study after study continues to show that the business climate in this state is unfriendly to business.
To help remedy that, I plan on introducing several pieces of legislation that will remove many of the unneeded burdens and regulations that have helped cause our state’s unemployment rate to rise to 7.7 percent and more than 9 percent in the Inland Empire.
I’ve always been pro-business because I believe being pro business means you’re pro-employee. Without a successful business there is no job. More jobs mean more people paying taxes and that means helping the economy fund the programs we all believe are important - like public safety and education.
It’s clear to me we weren’t ready for this latest economic downturn. But if we act now, we can be ready and can lead the nation in creating new jobs – stimulating the economic turn around.
Remember, the best social program is a good paying job.
Reading, Writing and Ridiculous!
We’ve all heard of the “Three R’s” – Reading, Writing and Arithmetic. A San Francisco school has given new meaning to the “Three R’” – Reading, Writing and Ridiculous!
It was reported recently that 18 first grade students took a school sponsored field trip to San Francisco’s City Hall to watch the wedding of their lesbian teacher to her partner.
This is ridiculous on so many levels but primarily because instead of being taught the traditional “Three R’s” they were taken on a school sponsored field trip to be taught about something that should clearly be left up to the student’s parents to teach – marriage!
When I see examples like this of our students having valuable time taken away from their education curriculum for such outlandish field trips I get angry at the School District for approving such school sponsored activities.
Each year when API test scores are released we find that most students in the state’s schools aren’t learning at grade level.
I say all school sponsored field trips like this should never be considered, not only for the obvious reasons but because that time can and should be spent on focusing on the traditional “Three R’s” of Reading, Writing and Arithmetic!
Wastewatchers Update
While we are hearing the threat of cuts of services at every level of government unless there are tax increases, we continue to find example after example of how your tax dollars are being wastefully spent.
I hope workers at every level of government will look for ways to more effectively spend the tax dollars you send them rather than just threaten to cut vital services such as police and fire or education because taxes aren’t increased.
Until we bring our wasteful spending under control I will never support raising your taxes. Here’s another example of tax dollars being misspent.
Contra Costa County taxpayers should be afraid, very afraid given the disastrous financial direction their county is moving in, which includes program cuts and dipping into county reserves. All the while, according to the Contra Costa Times, August 17, 2008, “[s]ome 153 of the Contra Costa County’s roughly 8,400 employees cost taxpayers at least $250,000 in salary and benefits last year. About half are doctors at the county hospital. About a quarter are department heads and top administrators. And, surprisingly, about a quarter work in the county’s largest fire department.”
While public workers deserve to make a living, it should not come at such a high and unnecessary cost to already overburdened taxpayers. It is surprising that, “[t]opping the list for the Contra Costa County Fire Protection District is [a captain] whose total 2007 compensation package of $314,029 was three times his base salary of $104,160 a year. The big-ticket items that boosted his package: $106,000 in overtime; $25,700 to fund his pension; and $12,800 for health insurance.”
Public employee pensions and fringe benefits have increased dramatically in recent years, as illustrated, in this case, by “newly released Contra Costa data showing total compensation-the cost of salary and benefits-for all county employees.” The report “demonstrates that, especially in Contra Costa, base pay is just part of the cost to taxpayers for public-sector workers.”
Taxpayers would be shocked to know that the, “$1.0002 billion spent on workers’ compensation last year, the ratio of benefits ($369 million) to earnings ($633 million) was 58%.” The ratio is actually higher since it does not include the huge cost of health insurance the county has promised workers when they retire, and “[t]hat 58% far surpasses the 34 percent average for state and local governments across the county, and 24 percent nationally for the private sector.”
Although local jurisdictions throughout the state should have control over their personnel expenses, in counties like Contra Costa that are struggling to make ends meet, “extra work hours and generous retirement benefits are key reasons that compensation for 41 members of the fire department broke the $250,000 threshold usually reserved for employees with doctoral degrees or in top leadership positions.” Not an enviable position when faced with a budget crunch.
If this were the private sector, the county would go broke and be out of business in short order. However, the county has taxpayers to pay for its insatiable appetite to spend, spend, and spend – with no regard for the bottom line.
Every benefit has a cost, and it is vital that we lay all the information on the table in order to make informed decisions and curb out-of-control spending on public employees’ salaries and benefits. Elected officials need to stop making unrealistic promises and sticking taxpayers with the bill.
Around The District
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I was privileged to speak to the Greater Riverside Chamber of Commerce at their Legislative Luncheon on October 3. That provided me an opportunity to share information on the decisions that led up to the final passage of the state budget. Following the Luncheon I also addressed the participants of this year’s Leadership Riverside. I used that opportunity to talk about the importance of small businesses to the overall California economy. The other part of my message was that it is very important to stay involved by keeping informed about the legislative process. You should know who your representatives are and what their positions are on various legislative bills and communicate your thoughts on legislation to your representatives.
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On Wednesday, October 8, I was a panel member for the Western States Petroleum Association Conference on energy. Topics included in the discussion were alternative energy sources, sustainable energy ideas, as well as comments on the implementation of AB32, the green house gas legislation passed in 2006. My comments were directed at making sure we are considering both the long term as well as short term impacts on our economy as these regulations are being developed and implemented. It is important that we proceed in a manner that will set realistic goals and be beneficial to everyone at all levels of our economy.
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My entire district staff and I visited Yucca Valley on Thursday, October 9. In the morning I addressed the Mojave Water Agency at their Water Symposium, where I shared information on the Governor’s declaration of drought and the conditions that led to that declaration. We are facing some tough times ahead when it comes to our water resources and it is time to take steps on a state-wide level to address that problem. I am sure it will be one of the principal topics of discussion in the coming legislative year.
In the afternoon we spent time at the California Welcome Center visiting with local citizens and responding to their questions and concerns. I sincerely enjoy the time I can spend with constituents in the 31st District, personally listening to their thoughts and ideas.
In the evening I met with the Yucca Valley Town Council to share information on the actions and decisions that were a part of the process leading to the passage of the state budget and how it would impact local government. It was also beneficial for me to hear what issues and concerns the local residents were facing.
By the way, we also stopped in at Pappy and Harriet’s for an enjoyable early lunch. I do enjoy Pioneer Town!
Yucca Valley Town Council
Pappy and Harriet’s
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Unwanted Old Pills and Prescriptions: Ever wonder what to do with those “old pills” collecting in your medicine cabinet. Don’t flush them down the drain. The Lake Arrowhead Community Services District will be holding a free unwanted medication disposal event at Mountains Community Hospital on Saturday, November 1st from 9 a.m. to 4 p.m. This is a good idea and will allow residents to safely dispose of unused medications. The disposal of pharmaceuticals through toilets and other household drains is causing serious harm to our ground water and environment so we all need to give more thought to how we dispose of our “old pills”. For those living in other areas, you can visit the website http://nodrugsdownthedrain.org to get more information.
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Teen Substance Abuse: This is a growing problem in our communities and Rim Family Services wants to do something about it. On Tuesday, October 14, they held the first community meeting to provide educational information to families in an effort to work toward substance abuse prevention in the mountain communities. They will continue to have meetings on the second Tuesday of the month. I applaud their efforts and encourage anyone interested in getting information or help to contact Colleen Meyers with Rim Family Services at 909-336-1800.
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On A Personal Note:
I’ve always considered myself a “citizen statesman” and try to take a “common sense” approach to my job as a member of the California State Legislature.
I’d like to believe that this approach to my job as a member of the California legislature is the reason why the people of the 31st Senate District decided to re-elect me to a second term during the Nov. 4th General Election.
We have many challenges ahead, including finding a long-term solution to the state’s on-going budget woes and brining more high paying jobs to this state. I’m honored and humbled to the people of the 31st District for sending me back to Sacramento for a second term in the Senate. I will continue to represent your voice in the Legislature and want you to be sure that my votes will be based not on politics, but good policy!
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Tags: budget, election, Robert Dutton