Call Off the Brawl

A rebound in the California economy is pouring a $2-billion bonus of taxes and other revenues into the state treasury. Hooray, and hold the champagne. A lot of the money should go to the potholed, broken-down transportation system that successive governors have starved of funds. Some might be left for bonus pay for qualified teachers willing to work in and raise the quality of shortchanged inner-city schools.

OK, that’s spent.

The state will still face a multibillion-dollar shortfall, and a timetable that is driving Gov. Arnold Schwarzenegger and legislators toward destructive budget gridlock.

At the end of this week, the Republican governor is expected to issue a revised state budget, adjusted for the latest revenue figures. By June 30, the Democratic-controlled Legislature is supposed to deliver its own version of that budget back to the governor, after approving it by a two-thirds vote. Between those two dates is a political grenade, the mid-June deadline for Schwarzenegger to decide whether he’ll call a special November election on his proposals for a spending cap, changes in teacher tenure and a shrinking basket of other reform ideas.

Democrats strongly oppose the budget cap plan, viewing it correctly as a major power shift to the executive branch. If Schwarzenegger calls a special election, unwinnable political warfare will erupt.

This conflict, unless the governor calls off the election, would almost inevitably mean a mammoth budget stalemate late into the summer, perhaps even into the fall.

Schwarzenegger and legislative Democrats should avoid such a situation at all cost. Democrats want some kind of tax increase to close the persistent budget gap, and they see cracks in the governor’s popularity as being to their benefit. Republicans not only want no new taxes, many want all new revenues put toward debt payoff. Schwarzenegger meanwhile is zigzagging between calls for negotiation and running off to Fresno for photo ops of regular folks signing his petitions.

Governing can’t be played forever as a game of gotcha. Or a game of chicken. Schwarzenegger shouldn’t wait until mid-June to put off the ballot war. If he decides it’s inevitable, these issues can go on the ballot in the primary election set for June 2006.

Democrats and Republicans should then agree to spend the new tax revenue on capital investments in the state’s crumbling physical and intellectual resources. Don’t spend additional but iffy tax amnesty funds until they’re in hand. Compromise on the least possible tax or other revenue increases to slowly close the state’s funding gap. Take a breath and remember whom you’re working for.