Two fiscally conservative governors, miles away from each other,
are forecasting budgetary disaster unless voters pass new state
spending rules.
This situation might seem common enough, but this time there is
a catch: Their goals are opposite.
While Gov. Arnold Schwarzenegger pushes California voters to put
a cap on yearly state spending, his Colorado counterpart Gov. Bill
Owens is working to suspend similar controls established in his
home state years ago.
Though Colorado’s longtime budget restraint has been
lauded by fiscal conservatives nationwide, budget capping has left
state services in a slump.
Critics of the Golden State measure ““ Proposition 76 on
the Nov. 8 special election ballot ““ say California could be
the next Colorado.
“There are a number of indicators where Colorado has
fallen significantly over time, in large part because of the way
(the spending cap) has strangled state government,” said
David Bradley, a policy analyst for the Center on Budget Policy and
Priorities, a left-leaning think tank that has criticized
Colorado’s spending policies.
Opponents of Proposition 76 also say the measure’s passage
could take a toll on California universities.
In Colorado, higher-education funding ““ on par with the
national average before the state’s budget cap was
implemented ““ has lagged considerably, causing tuition to
increase 21 percent since 1992.
Spending cuts spell poor quality, higher tuition and subpar
facility maintenance, Bradley said.
Some say speculating which state services will be cut is
premature.
“Anyone who says it’s going to cut this or that is
just guessing,” said USC business and law Professor John
Matsusaka.
Other state services that could be cut include K-12 spending,
social services and road maintenance.
In Colorado, 50 road projects are on hold, teacher pay is well
below the national average, and the state has a poor record of
providing health insurance for low-income residents.
However, some fiscal conservatives say these problems stem from
poor allocation, not a lack of funds.
“Enforcing budgetary restraints makes people make tough
decisions, and making tough decisions is called governing,”
said Christopher Butler, director of communications at Americans
for Tax Reform.
Butler said a balanced state budget, the proposition’s
principal priority, would serve as an “economic engine”
that would revitalize the state.
If the proposition passes, the state would be have to limit
spending, based on average revenue over the course of the most
recent three years.
Unlike Colorado, where taxpayers get a refund check, California
surpluses would go into a rainy-day fund.