Issue link: https://www.epageflip.net/i/29041
4A – Daily News – Monday, April 11, 2011 Opinion D NEWSAILY RED BLUFF TEHAMACOUNTY T H E V O I C E O F T E H A M A C O U N T Y S I N C E 1 8 8 5 Revenue realities, fiscal fictions, budget blockades There seems to be a consider- able amount of misinformation being tossed about regarding the reasons for the California and national budget crises. Republi- Greg Stevens, Publisher gstevens@redbluffdailynews.com Chip Thompson, Editor editor@redbluffdailynews.com Editorial policy The Daily News opinion is expressed in the editorial. The opinions expressed in columns, letters and cartoons are those of the authors and artists. Letter policy The Daily News welcomes let- ters from its readers on timely topics of public interest. All let- ters must be signed and pro- vide the writer’s home street address and home phone num- ber. Anonymous letters, open letters to others, pen names and petition-style letters will not be allowed. Letters should be typed and cannot exceed two double-spaced pages or 500 words. When several letters address the same issue, a cross section of those submit- ted will be considered for publi- cation. Letters will be edited. Letters are published at the discretion of the editor. Mission Statement We believe that a strong com- munity newspaper is essential to a strong community, creating citizens who are better informed and more involved. The Daily News will be the indispensible guide to life and living in Tehama County. We will be the premier provider of local news, information and advertising through our daily newspaper, online edition and other print and Internet vehi- cles. The Daily News will reflect and support the unique identities of Tehama County and its cities; record the history of its com- munities and their people and make a positive difference in the quality of life for the resi- dents and businesses of Tehama County. How to reach us Main office: 527-2151 Classified: 527-2151 Circulation: 527-2151 News tips: 527-2153 Sports: 527-2153 Obituaries: 527-2151 Photo: 527-2153 On the Web www.redbluffdailynews.com Fax Newsroom: 527-9251 Classified: 527-5774 Retail Adv.: 527-5774 Legal Adv.: 527-5774 Business Office: 527-3719 Address 545 Diamond Ave. Red Bluff, CA 96080, or P.O. Box 220 Red Bluff, CA 96080 cans and far right Tea Party wing- nuts say that out of control spend- ing and tax collections inspired by Democrats and the loony lefties are to blame. Others realize that the recent economic crisis created unprecedented expenditures to keep the economy alive and that the recession severely diminished state and national income. In light of the budget blockade in Califor- nia and the near federal govern- ment shut down it might be useful to figure out what is really going on. As I perused the web sources I found the most comprehensive and understandable historical data on California revenue, expendi- ture, and employment to be main- tained by the Legislative Analyst Office (LAO) at www.lao.ca.gov/laoapp/laomenus /lao_menu_economics.aspx. The LAO has been providing fiscal and policy advice to the Legisla- ture for more than 70 years and is known for its fiscal and program- matic expertise and nonpartisan analyses of the state budget. The office serves as the "eyes and ears" for the Legislature to ensure that the executive branch is imple- menting legislative policy in a cost efficient and effective manner. At the link referenced above one can click on one of three spreadsheets. For the sake of brevity I will only present data from the last five fiscal years (2006-2010). For each item con- sidered the numbers presented are billions of dollars for fiscal year 2006/7, 2007/8, 2008/9, 2009/10, and projected 2010/11 in sequence. Let’s begin with a table entitled "State of California Rev- enues, 1950-51 to 2010-11" that was last updated in October of 2010. State revenues for each fis- cal year totaled 95.5, 102.5, 82.8, 86.9 and 94.2 billion dollars. Cor- porate taxes contributed 11.2, 11.8, 9.5, 9.3, and 10.9, personal income taxes totaled 52.0, 54.2, 43.4, 44.8, and 47.1, and retail sales taxes provided 27.4, 26.6, 23.7, 26.6, and 27.0 billion dollars respectively. A cursory review of these data clearly indicates that total state revenues, corporate taxes, and personal income taxes have fallen dramatically since 2007/8. Rather than increasing in step with popu- lation and inflation revenues since FY 2007/8 have accumulated to a shortfall of over 43 billion dollars. Most would think that the 35.4 billion dollar revenue shortfall from 2008/9 and 2009/10 might have something to do with the fis- cal crisis we now face to deal with the 26 billion dollar budget hole. Rather than having a rainy day fund, California instead has a pot- hole the size of the Sahara desert! Let’s now turn our attention to state expenditures by exam- ining data from the table entitled "State of California Expendi- tures, 1984-85 to 2010-11" that was last updated in May 2010. Total expenditures were 101.4, 103.0, 90.8, 86.5, and 83.4 billion dollars in each fiscal year. K-12 edu- cation levels were 39.3, 39.8, 32.6, 34.5, and 33.5, criminal jus- tice 11.8, 13.0, 12.5, 9.0, and 10.8, health totals were 19.2, 19.9, 18.4, 15.2, and 16.6, and social services totaled 9.8, 9.4, 9.8, 9.2, and 6.3 billion dollars in each fis- cal year. Here again contrary to what fiscal conservatives would have us believe state expenditures have been reduced drastically since 2007/8 in nearly every category of spending. Social services have held relatively stable until the pro- jected current fiscal year where radical cuts were made to the Cal- works program that endeavors to get people off of public assistance by providing job training and child care. This misguided and mean spirited belt tight- ening prompted by con- servatives is certain to increase rather than diminish the needs for public assistance. Richard Mazzucchi Positive Point Because California is a significant portion of national finances and is a bell-weather for other states the national outlook is as depressing as our own. But the fed- eral deficit isn’t a result of corporate bailouts that are now largely repaid with interest it is a product of providing jobs and assistance to our citizens while wag- ing two unnecessary wars and failing to have the wealthiest Americans pay an adequate share of taxes. Igno- rance of revenue realities, fiscal fictions, and budgetary block- ades erected by conservative leg- islators are crippling California and our nation. Only by under- standing and soberly facing facts can American prosperity be restored. Richard Mazzucchi makes his home in Los Molinos and can be reached at living-green@att.net. Your officials STATE ASSEMBLYMAN — Jim Nielsen (R) State Capitol Bldg., Room 6031 Sacramento, CA 95814 (916) 319-2002; Fax (916) 319-2102 STATE SENATOR — Doug LaMalfa (R) State Capitol Bldg., Room 3070 Sacramento, CA 95814 (916) 651-4004; Fax (916) 445-7750 GOVERNOR — Jerry Brown, State Capitol Bldg., Sacramento, CA 95814; (916) 445-2841; Fax (916) 558-3160; E-mail: gover- nor@governor.ca.gov. U.S. REPRESENTATIVE — Wally Herger (R), 2635 Forest Ave. Ste. 100, Chico, CA 95928; 893-8363. U.S. SENATORS — Dianne Feinstein (D), One Post Street, Suite 2450, San Francisco, CA 94104; (415) 393-0707. Fax (415) 393-0710. Barbara Boxer (D), 1700 Mont- gomery St., Suite 240, San Fran- cisco, CA 94111; (415) 403-0100. Fax (202) 224-0454. Celebration, inspiration from Republicans Commentary Right now, after celebrating and reveling over the uplifting words, inspiring stories and the tremendous contributions of local- ly-produced items and framed pic- tures of Ronald Reagan (and other presidents), combined with the generosity of our Republican faithful, I can only sigh with grati- tude. My heart is moved to think of the hundreds of hours of volun- teer effort to decorate the Veterans Memorial Hall, the many hun- dreds of dollars of raffle items contributed, and the generosity of attendees at a time of pinched bud- gets everywhere. We northern California Repub- licans are fortunate to have the principled, dedicated representa- tion of conservatives like Assem- blyman Jim Nielsen, State Senator Doug LaMalfa and Congressman Wally Herger. Naysayers will, out of petty, partisan spite, throw their brickbats of insult and criticism – to no ultimate effect. Assembly- man Nielsen regaled us with story after story from President Rea- gan’s diary, for the purpose of auc- tioning that tremendous book to the highest bidder. Gun Owners of California’s Sam Paredes uplifted us with his address. I believe that, from Tehama County, throughout California, reaching across the Midwest to the liberal bastions of the East Coast and Washington, D.C., Republi- cans are in the ascendancy and conservatism is the rudder of the ship, the gusts in the sails, the … you get the idea. I believe it unnerves and frightens the left, the public employee unions and advo- cates for ever-encroaching, ever- controlling and ever-expanding government. I believe that the vast self-sup- porting center-right, those who truly believe that ours is a system of limited government living with- in reasonable revenues, empow- ered by responsible, free citizens – that that majority has awakened to the real threats to self-government and liberty from those on the other side. Whether through participat- ing in and supporting local Repub- lican groups, attending local Tea Party Patriots meetings and rallies, or simply becoming informed by non-liberal sources (talk radio, conservative writers and internet websites) of vital information about news and current events – you, the majority, can do some- thing to secure your and your chil- dren’s future in a free America. Don’t be a passive listener/reader to the ever-present blather from liberal talkers on the tube, liberal news reports, liberal columnists and liberal letter writ- ers. They are the ideological minority and are becoming more desperate, hyperbolic and unhinged; certainly they are becoming more obvious about their agenda and intentions. Ask yourself this: How many times over the last weeks have you heard or read the use of "Tea Party" as a pejorative, all purpose insult imputing wild extremism to Republicans and conservatives? I’ve presented plenty of polling results in this column, as well as at "Polecat News and Views" (see "blogs" online at Daily News site or "donpolson.blogspot.com") to completely refute such rhetoric. And yet partisan hacks continue their diatribes. The Tea Party movement, emphasizing fiscal responsibility and adherence to the Constitution, is the hope of this nation; you can attend weekly meetings as list- ed for Tuesdays in the "Local Calendar." Get involved! The left sees this as a life or death struggle and they think they can prevail. Will you, by passivity and inaction, let them? Simply witness what just happened in Wash- ington over the 2011 budget: Speaker John Boehner masterfully used every rhetorical, political and tactical weapon to throw the Democrats and President Obama on their heels. I see in him a Gary Coop- er-ish, quiet but serious-as-a-heart- attack, ability and resolve to pursue with determination the course of right, and righteousness. Possibly Reagan-esque. How else can you describe Republican resolve to steer America back from the most predictable course toward fiscal ruin and insolvency to ever occur in modern times? Everyone but lib- erals knows it, and even some of them have belatedly begun to get on the deficit-cutting bandwagon. Yes, a $40 billion cut from cur- rent spending is about a third of a french fry in a Big Mac meal but it is the largest such dollar cut in generations. Yes, the daily interest on the national debt is more, but Democrats and Obama wanted no cuts whatsoever, then a few bil- lion, then $20bn, then no more than $33bn, before finally throw- Don Polson The way I see it ing in the towel for $38.5 billion. And "that’s not all!" Funding is restored for D.C. school vouchers that Obama shamefully cancelled in a sop to teachers’ unions (while his children waltzed off to private school). "In addition, ‘numerous studies’ of the health care bill will be ordered (likely providing) the GOP with juicy politi- cal ammo heading into next year’s elections." (Politico, April 9) No federal funds will be allowed for abortions in D.C. No additional IRS agents will be hired. GAO and private industry will yearly audit the impact of last year’s financial reform bill, possibly providing necessary correctives. And the Senate, against every fiber of Harry Reid’s dark soul, will have to schedule votes on policy issues like ObamaCare. Also, Speaker Boehner con- trasted his classy style with the hysterical, disgusting and com- pletely made-up charges by Democrats beneath dignifying here. He avoided Newt Gingrich’s mistake by not turning the budget fight into a personal grudge match with President Obama. Well done, John Boehner. Now to the main event, the 2012 budget of Rep. Paul Ryan. You go, guys. Don Polson has called Red Bluff home since 1988.He can be reached by e-mail at donplsn@yahoo.com.