Deal Before the Hole Grows

Republicans say they won’t balance the budget by forcing businesses and consumers to pay more taxes. Democrats say they won’t balance the budget by slashing aid to the aged, blind and disabled. Somewhere between, legislative leaders and Gov. Gray Davis must find compromise on a new budget before the state runs out of cash, possibly in late August.

All of this, of course, is against the backdrop of the effort to recall Davis; supporters of the recall say they’re so confident they have enough signatures to qualify the recall that they have pulled back signature-gatherers from the field. The disturbing political potential here is that there are those who would wreak havoc with the state’s budget to make a political point. The state budget can’t wait for Davis’ enemies to settle scores through a recall attempt. State legislators should be working around the clock to approve a spending plan for the nation’s most populous state -- a state whose reputation is sinking along with its credit bond rating.

Republicans insist that the $38-billion budget shortfall be bridged without raising any new revenue, claiming it would take only a 4% overall cut in the budget beyond what Davis has already proposed. That sounds good, but it’s grossly misleading. Much of the budget, including bond debt payments and a certain level of aid to public schools, by law cannot be reduced, and some items such as the Highway Patrol were exempted.

The Republicans are failing to level with the people, but the Democrats have a perfected a “Who me?” collective shrug, as if they bear no responsibility for the crisis. Yet it’s the Democrats who have protected and rolled over for state employee unions, particularly prison guards, who are due to receive outrageous pay increases in this year of spiraling unemployment. The unions have refused to negotiate even a temporary delay or reduction in the pay hikes. If they continue that posture, the governor should stand up courageously to labor -- his biggest supporter against the recall -- and make it clear that a corresponding amount of money will have to be saved with layoffs. They can decide: their raises or perhaps their jobs.

In this budget year, there will be no happy choices. The state will have to cut spending, raise taxes and trim services, at least temporarily. It’s just a matter of how it’s done. There’s no point, then, in delaying the inevitable; it only becomes a deeper hole from which to dig out.

Each side has to give up its hardened political rhetoric and compromise on its so-called ideals to get a budget deal. That’s the only way to save California from fiscal disaster.

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To Take Action: Gov. Gray Davis at (916) 445-2841, e-mail: governor@governor.ca .gov. To identify and contact your legislators, go to www.senate.ca.gov or www.assembly.ca.gov and call up member lists for phone numbers and e-mail addresses.