'Gov. Moonbeam' hastening California's 'race to the bottom'

Becky Yeh - OneNewsNow California correspondent - 5/17/2012 3:40:00 AM

California voters are being pressured to either allow deep cuts to public safety and education, or place additional tax burdens on themselves.

Because of the state's $16 billion shortfall, Gov. Jerry Brown (D) has announced he will have to make painful cuts to education and public safety if voters do not approve his proposed tax hikes. Author and pro-family activist James Lambert reminds OneNewsNow that the Democrat is pushing voters to pass a November "millionaire's tax" initiative.

"It is a dire situation and something that people should be aware of," he contends. "And people should press to get conservatives back in power in this state. That hasn't happened for over 30 years."

Brown says the state's deficit increased from $9.2 billion in January because the economy is not recovering as quickly as officials would like.

"Governor Brown fully realized that we were in a shortfall, because what's happened in this state for the first time since inception of the state in the 1800s [is] we are actually losing population," Lambert explains. "People are moving out of the state primarily because of the tremendous expense it costs to live here, including the taxes."

That, he says, is also why businesses are leaving. So considering the fact that Brown knows this, the author does not see how he can say he is surprised by the $16 billion shortfall in the state budget.

As OneNewsNow reported earlier, the millionaire's tax initiative would please teachers groups that are Brown's allies, as it would generate more money for them.

Meanwhile, a financial advisor says California is in a "race to the bottom," and the governor's fiscal plan will only get the state there faster. (Listen to audio report).

Gov. Jerry Brown wants to make more cuts to health and welfare and create a four-day work week for state employees as he seeks to solve the state's budget deficit. But Louis Cumming, a retired bank executive officer and financial consultant, says political leaders need to realize something.

"Unless the politicians in Sacramento recognize that they have to deal with the spending side of the ledger and not the income side of the ledger, California will descend into fiscal oblivion," he warns.

Brown has also proposed cuts to education and the courts. The Democrat says the state has been living above its means and must "take the medicine."

"As the taxes rise and the jobs disappear, we lose our tax base," Cumming reasons. "We are, if you will, in a race to the bottom, and Governor Moonbeam's tax plan will only accelerate that race."

Gov. Brown is also relying on his November tax initiative to bridge the budget deficit.

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