A Blueprint for Rebuilding California's Antiquated Fiscal Structure: Review of California in the Balance: Why Budgets Matter

Abstract

Sexton: A Blueprint for Rebuilding California's Antiquated Fiscal Structure THE CALIFORNIA Journal of Politics & Policy Book Review California in the Balance: Why Budgets Matter; John Decker, Berkeley Public Policy Press, 2009. Volume 2, Issue 1, 2010 As we brace ourselves for the next round of salary re- ductions, furloughs, layoffs, service cuts, and benefit re- ductions in California, we look to the federal government and its stimulus funds to end the recession and turn our economy around. Our chronic budget deficits, however, will not magically disappear as employment and incomes rise. As John Decker explains, California budget deficits are forecast to continue long after the recession ends. Even as tax revenues begin to grow, expenditure growth will continue to outpace them. These structural deficits are the result of tax and expenditure policies that have evolved over the last 20 years and the solution or prescription for recovery is going to require structural change. Decker begins by describing the process of approving a state budget beginning with the governor’s budget pro- posal released in January through to final passage of the budget bill; often well past the constitutionally set June 15 deadline. While the state constitution details the divi- sion of responsibility between the governor and legisla- ture, most procedural aspects are determined informally by legislative customs believed to facilitate negotiation and minimize conflict. www.bepress.com/cjpp * Terri Sexton is a professor of economics at California State Uni- versity, Sacramento. A Blueprint for Rebuilding California’s Antiquated Fiscal Structure Terri A. Sexton* CSU Sacramento