LWV Urges State to Solve Structural Budget Deficit

League of Women Voters of California delegates approve resolution urging the Governor and Legislative leaders to address the structural budget deficit.

Delegates to the recent convention of the League of Women Voters of California, meeting in Bakersfield, approved a resolution calling upon the Governor and state legislative leaders to enact a responsible state budget that will:

1. Give priority to eliminating the ongoing structural deficit
2. Not make early repayments on the deficit reduction bonds
3. Increase revenues (roughly equivalent to the Vehicle License Fees (VLF) that were reduced) through sources that would diversify the revenue mix to reduce the reliance on income and sales taxes
4. Use new revenues to address priorities such as global climate change that would have additional benefits of changing behavior
5. Review existing tax incentives (tax expenditures) to identify those that are ineffective or no longer needed, and include a sunset provision for any new incentives.

In letters to Governor Schwarzenegger and leaders of the legislative houses and their budget committees, LWVC President Jacqueline Jacobberger stated, “The time has come to make real choices about the services the state provides and the funding that is needed, and to heed the importance of establishing prudent reserves.”

The attached resolution, passed by the 180 delegates in attendance on May 20, cites the fact that state structural deficits ranging from $3 billion to $5 billion are expected to continue between now and 2010, according to the Legislative Analyst's Office. It further states that although the economy has recovered from the downturn in 2000, the prospects for “growing out” of this deficit are not likely and the establishment of prudent reserves may not be achieved, even with any number of transfers from other funds such as public transportation. Proposed cuts in programs like CalWORKs and SSI/SSP target those most in need and would make only a small contribution toward balancing the operating budget.

“Our elected leaders must take the bold steps necessary to address both short- and long-term flaws in our fiscal situation. We urge legislators and the administration to work together to put real solutions to our structural budget problems into place,” added Jacobberger.

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