Reposting what I’ve already suggested on another thread regarding possible solutions to our budget crisis:
My suggestions for fixing California’s budget crisis,
Submitted by CA renter on February 4, 2011 – 3:13am.
1. Roll back the pension boost enacted by Gray Davis (and friends) from 3% @XX to 2% @ 55 for public safety workers. I’m an ardent supporter of defined-benefit pension plans, but this increase was totally irresponsible, and I said so back then. Because this increase has been there for so long, and because many older workers have adjusted their finances because of it, those with 10 years or less left before retirement will need a lump sum payment, perhaps of $50K-$150K, basically something tied to the number of years they’ve already put in under the 3% formula (a drop in the bucket when compared to the relative savings) in order to make up for the fact that they are too close to retirement to make up the difference.
2. Cut pay of municipal and state workers by ~10%, if they haven’t already been cut (many have).
3. Get serious about illegal immigration, and either demand that the federal government supports all of the illegals and their children, OR charge the employers of illegal immigrants for **every single benefit** used by their workers AND their dependents (legal or not), and include infrastrucuture expenses AND the expenses related to administering this program.
[If we “fix” the illegal immigration problem, it will probably eliminate about 25-40% of the costs associated with education and prisons, and possibly “welfare” programs — all of these being the largest expenses in the state.]
What would be interesting is to see how “cheap” that illegal labor is after all the costs have been added in — these costs have been subsidized by the taxpayers. Who knows? Maybe employers would suddenly find out that Americans are “willing to do THAT work, after all” when employers are forced to pay the REAL costs of that labor.
4. Get rid of Prop 13 protection for all residences except a SINGLE, primary residence. Eliminate inheritability of Prop 13 protection IF the heir intends to “step-up” the cost basis upon death of a parent.
5. Get rid of Prop 13 protection for all commercial properties except for a SINGLE property (held by an individual or a trust/LLC controlled by that person). Eliminate the ability to pass Prop 13 protection from seller to buyer via corporate/LLC loopholes.
Once those things are done, see where everything stands, and then raise certain taxes, if necessary. I have a feeling we’d end up with a surplus if we enacted the changes noted above, though.
