SOUNDING OFF: Budget crisis requires action

The Legislative Analyst Elizabeth Hill on Wednesday morning released her forecast for the 2008-09 state budget “” and it’s not a pretty picture.

According to Hill, declining revenues and increased expenses add up to a $10 billion problem for the fiscal year that began July 1.

In response, my Senate Republican colleagues and I are calling on Gov. Arnold Schwarzenegger to convene a special session to address the massive deficit facing the state next year.

California’s deteriorating budget situation requires the governor to declare a state of fiscal emergency as provided for in Proposition 58.

Under Prop. 58, if the governor determines the state is facing substantial revenue shortfalls he may declare a fiscal emergency.

The governor then would be required to propose legislation to address the problem.

More importantly, the legislature may not act on any other legislation until it deals with the fiscal crisis. The failure to act now will only make a bad situation worse.

Additionally, I believe our government must enact zero-based budgeting. Essentially, each agency, department and division would be required to justify and account for each and every dollar it requests and spends every year.

This will allow the state to develop a complete picture of what a particular agency or department actually needs to efficiently operate as opposed to automatically giving it last year’s budget plus more for good measure.

The governor directed all state departments earlier this week to prepare budget requests that reflect a 10% cut.

As expected, there has been a hue and cry over the damage that such cuts will do to those dependent on government programs and the predictable call for increased taxes to prevent some devastation.

It is reminiscent of the classic tale of the ant and the grasshopper.

During good times, the ant worked hard and saved for the dark days.

The grasshopper whiled the time away, not being productive, not saving and not giving a thought to the future, and is then dismayed when the ant will not share his hard-earned store of goods.

This budget deficit is growing to near-Davis administration levels and like before it is not the result of a lack of revenues, but of the state outstripping revenue growth. It is high time for our government to tighten its belt. Rest assured, I will continue my pledge against any new taxes to balance this budget.

TOM HARMAN represents the 35th State Senatorial District, which includes Laguna Beach.