CALIFORNIA BUDGET ACCOUNTABILITY ACT
At its March meeting, the LWVC Board voted to support an initiative aimed at the March 2004 ballot that would amend the state Constitution and statutes by making major changes in how the state budget is passed. It would change the required vote to pass the budget, as well as tax increases or decreases and other legislation related to the budget, from two-thirds to 55% of each house of the Legislature. Legislators and the Governor would forfeit their salaries and expenses each day they fail to pass a budget after the constitutionally mandated deadline. The Legislature would be required to stay in session and could not consider any other bills not related to the budget, except emergency bills recommended by the Governor, until the budget was passed. A "rainy day" reserve fund would also be created to set aside money in good economic times when revenues exceed what is needed for existing programs. This would be used in times of economic downturn to reduce the need for drastic cuts in programs or increases in taxes.
The initiative would require the Controller to prepare a two-page summary explaining how state funds are spent and include it in the state ballot pamphlet at every statewide election. The summary would also direct readers to a state Web site that includes voting records of legislators on the budget and related legislation. The measure would also add a provision that no officer, committee or member of the Legislature shall threaten or punish any member for his or her vote on the budget or related bills. Complaints of violations could be filed with the ethics committees of each house, which could investigate, make recommendations on action, including censure, and make their findings public.
Our State and Local Finances position calls for "a process that allows adoption of revenue and finance measures by a simple majority vote," and measures that "facilitate accountability to the public by the unit of government which collects the revenues and which delivers the services." Although we support a simple majority vote, we supported Proposition 39 of 2002 that changed the required vote for passage of local school bonds to 55% on the grounds that it was a significant step in the right direction, and the Board believes that is also the case here. We also support relevant, easily understood information on election issues in the ballot pamphlet. We have no positions on some of the other features of the measure, but neither do they appear to contravene any positions. They are intended to require greater accountability on the part of the Legislature.
Only two other states, Rhode Island and Arkansas, require a two-thirds vote to pass a budget. In California, the requirement has meant ever-longer delays that work severe hardships even in good economic times. It has not led to compromise, but has simply become a bargaining process of holding out until the necessary votes are "bought" by provisions for special interests. In hard economic times, delays work even greater hardships and uncertainty, hurting our credit rating and raising the cost of borrowing money.
--Anne Henderson, Legislative Director, LWVC Board Update
