5 solutions to stop California's disastrous budget cuts.

California is in a crisis. Much of the making is due to the severe national recession. But much is also self-imposed by the archaic and regressive constitutional requirement that the budget and any associated tax increases be passed by no less than two-thirds of each house of the Legislature.

The Legislature has been reduced to hearing ever more desperate appeals from individuals, groups and organizations that are all deserving. We need healthcare, scholarships, AIDS funding, parks and dozens of other vital programs. We realize that all will be cut, but we want all to be cut less.
Here are five steps we believe the Legislature should enact immediately in order to lessen the pain. Gov. Schwarzenegger will not like them. The Republicans in the Legislature will hate them but should be forced to go on the record voting yes or no.

First, the Legislature should simply reverse three expensive tax concessions to businesses that were offered up as bribes to Republicans in September 2008 and February 2009. They were distasteful then -- they are immoral now. The three breaks are allowing corporations to share credits with affiliated companies; allowing companies to use this year's losses to obtain rebates (!) on prior-year taxes; and allowing multi-state and multinational corporations to choose among different formulas that will reduce the taxes they owe California.

Second, California should join every other oil-producing state and tax the extraction of oil. With oil prices rising rapidly, we are leaving billions on the table that every other state is using for the public benefit.

Third, the Legislature should update the administrative rules governing the assessment of commercial property. Today, these rules are terribly out of date and written for the circumstances that existed before Prop. 13 passed. They allow companies that own commercial real estate to avoid having their property values updated, except under unusual circumstances. Over time, this has radically shifted the burden of property taxes from businesses to homeowners -- definitely not what the public thought it would get in enacting Prop. 13.

Fourth, it is time to impose a sales tax on medical marijuana. This is quite different than legalizing all marijuana sales -- Californians are purchasing hundreds of millions of dollars of marijuana, with a doctor's prescription, for medical purposes. This should be taxed.

Finally, the Legislature should assert that the current crisis is the rainy day emergency that our $4.5 billion emergency reserve fund exists to solve. We should not use 100% of it -- there will be unexpected fires -- but it is time to tap the reserve to save lives and preserve services until the economy begins to recover.
I just signed the petition to tell Senate President Steinberg that it's time for brave approaches to the budget crisis. Pass the CREDO solutions to a roll call vote. Let the voters know whose side every legislator is on -- I hope you will too.

Please have a look and take action.

http://act.credoaction.com/campaign/ca_budget_june2009/?r_by=4507-466513-DEbG78x&rc=paste

Thanks!