Republican Spending Priorities for the 2016-17 State Budget

Where Should Our Money Go?

By Senator Bob Huff

The Governor will be releasing his budget priorities this week. Thankfully, the economy is reviving and revenues are up. Overall, it probably will reflect his general frugality. That’s not a bad thing when it comes to spending other people’s money.

Republicans pushed for creating a protected reserve for years, and we are justifiably pleased that almost 70 percent of Californians supported the passage of Proposition 2.

Prop. 2 banks 1.5 percent of general fund and capital gains revenues exceeding eight percent of general fund taxes, into a new account for the next 15 years. Half of the money goes to the Rainy Day Fund, and the other half to pay off debt, including retirement and health obligations. With a Rainy Day Fund finally in place, it creates a cushion that will soften the next economic downturn.

The difficulty that lies in the Prop. 2 formula is with determining the amount to be deposited into the Rainy Day Fund each year. Because more revenue came in this past year than anticipated, the LAO reports that the amount deposited for 2015-16 turned out to be short by about $2.2 billion. That means less money available in the general fund 2016-17 budget for new or expanded programs. You can bet some legislators will try to figure out a way around it.

The non-partisan Legislative Analyst’s Office recently released its fiscal outlook for the state’s 2016-17 budget, calling it “decidedly positive.” Budgets are simply a reflection of priorities, so here, straight and simple, are Republican priorities for the 2016-17 budget. They are reasonable, rational, responsible.

First, we need to take care of the most vulnerable in our society. We want stable funding for services and programs for the developmentally disabled, and we want to increase the rates the state pays doctors who care for Medi-Cal patients. Among the most vulnerable are the fast growing numbers of homeless youth, veterans and families. Homelessness in LA County has jumped 12% in two years. This is largely due to skyrocketing rents and high unemployment. We need affordable housing, which is why I support the bipartisan “No Place Like Home” initiative unveiled Monday by Senate President pro-Tem Kevin de León.

Second, we need to protect the safety and stability of our communities. The governor’s prison realignment plan and passage of Prop. 47 (reduced criminal sentences) have contributed to crime spikes in communities up and down the state. We want to direct more funds to services that address mental health issues, as well as local public safety and law enforcement.

Third, we need to shore up our crumbling transportation infrastructure and put general fund dollars back into transportation. Roads, freeways, bridges, are all over capacity and crumbling due to lack of proper maintenance. This is dangerous and it is costing Californians billions in increased auto maintenance bills and untold hours stuck in gridlock.

Fourth, we ought to curtail the growth in state spending. California’s taxes are already among the highest in the nation, even with revenues higher than they have been in years. The expansion of programs should stop until we can prove their effectiveness.

Fifth, as the budget expands, so does the amount of money going to education, as required by Prop. 98. In fact, just over 50 percent of the state’s general fund goes to education each year. We want to make sure those billions of dollars are spent effectively, in the classroom, on our kids. Too many children are not getting the education promised them, and we all bear the burden of that loss.

These are our priorities and we’ve been fighting for them for years. Constituents we represent tell us they share the same concerns. You want responsible spending priorities. We hear you and couldn’t agree more.

Senator Huff is the Senate Republican Leader Emeritus and represents the 29th Senate District. Follow Senator Huff on Twitter @bobhuff99.

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