A Taxpayers' Perspective: Re-engineering California's State Budget for Economic Growth

Abstract

THE CALIFORNIA Journal of Politics & Policy Commentary A Taxpayers’ Perspective: Re-Engineering California’s State Budget for Economic Growth Teresa Casazza* California Taxpayers’ Association Public finance in California is in grave turmoil. A se- vere recession took its toll in unprecedented job losses, re- ducing state and local revenues while increasing welfare caseloads and other social service costs. While economic difficulty can be a temporary problem, mounting public spending obligations have been burdening state and local government budgets long before this recession began. For too many years, California has been trying to do too much for too many people without enough money to www.bepress.com/cjpp Volume 1, Issue 2 , 2009 sustain it. Now that we are facing a $24 billion deficit, it is time to take a serious look at priorities and to find new ways to deliver better vital services in a more cost-effec- tive manner. The status quo is no longer acceptable. Every state program needs to be accountable for every tax dollar it consumes. The California Taxpayers’ Association urges state leg- islators, the governor, and local elected officials to take these actions: • Avoid new taxes and fees, while keeping in mind that the largest and most dramatic revenue opportunity for the state is revenue growth from an improved economy. Higher taxes are high-risk gambles. Particularly risky are split roll property taxes, various ways to tax high-income investors in the California economy, and other punitive taxes that target job creators. *Teresa Casazza is president of the California Taxpayers’ Association, a nonpartisan, nonprofit organization formed in 1926 to oppose unnecessary taxes and advocate for government efficiency.