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Governor Newsom released his revised state budget proposal for the 2022-23 fiscal year that begins July 1. Unfortunately, it was a lost opportunity to provide long-term economic relief to the millions of hardworking California families living paycheck to paycheck.
The Newsom Administration has taken an extra $97.5 billion out of taxpayers' pockets than the state needed. It's not the first time! It happened last year and the year before that. And with all that money, has anything been fixed? The answer is NO. Despite the excess funds available, California is worse off.
I've outlined several of the top issues facing our state, and some common sense solutions.
Taxes & Spending: Californians pay the highest state sales and income taxes in the country. Our corporations pay the highest tax rates in the western states. Now the state is reporting it essentially overcharged taxpayers by $97.5 billion. The common sense solution is to refund the money. The best, easiest, fairest way to “spend” the surplus is to recognize that it’s the people’s money and it should go back to them. Lower taxes dramatically and permanently so working families might themselves run a surplus instead of the state.
But if the state isn't going to give the money back to the people, it should at least use the funds to problem solve.
Gas Prices: Californians pay the highest gas prices in the nation, and second place isn't even close. We need relief at the gas pump NOW. Governor Newsom promised a gas tax holiday. It hasn't occurred. Governor Newsom talked about stopping the automatic gas tax increase on July 1. It hasn't happened. Put a moratorium on California gas tax only (53 cents a gallon) for the rest of the year and cancel the gas tax hike slated for July 1.
Crime & Retail Theft: This budget invests in investigating retail thefts. What's to investigate? California has passed laws that reduce the penalty for theft. Why would anyone think that's not going to cause an increase in retail thefts? The common sense solution is to change the laws so there is a greater penalty for those that go into a store and walk out with a shopping cart full of merchandise they haven't paid for.
Housing: Make housing more affordable by reducing permit and regulatory costs and timelines. Establish a one-stop-shop for builders. What good is a down payment relief program when the cost of housing continues to increase with no end in sight?
Agriculture: Stop sitting on the sidelines and help our California farmers and economy deal with the current shipping crisis. California is a nation-state with the 5th largest economy in the world. The Governor should ramp up the pressure on Congress to fight for our agricultural community. See related New York Times and San Francisco Chronicle articles and my opinion piece.
Water: There is nothing new about a drought in California. The only thing new is that we suddenly have $97.5 billion to solve the problem. So let's solve it now and pay for a project in full. $97.5 billion can buy a lot of Sites reservoirs, each of which holds 1.5 million-acre feet of water. Let's allow California to grow food, supply water for new housing, and protect our environment.
Wildfires: The Newsom Administration needs to invest in removing the red tape and roadblocks stalling wildfire prevention and treatment projects.
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