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A Tale of Two Jerrys

For connected public employees, California remains the land of milk and honey.

Jerry Brown, in his first stint as Governor of California (1975-83), gave public employees the gift that kept on giving: collective bargaining. Now, in his second stint, nearly three decades later, he is facing the consequences of that gift.

Public employee unions as a group, and especially the teachers’ unions, have ended up owning the state legislature: virtually all the majority Democrats and even some Republicans. These politicians have come to depend upon contributions from the huge war chest of the California Teachers Association.

From 2000 to 2009, the CTA spent $211 million in contributions and lobbying, two times the Number Two spender, the Service Employees International Union. Add $40 million to that for the two years since, including a hefty contribution to Brown’s 2010 campaign.

The Los Angeles Times reports that a year ago, when the state was facing another multibillion dollar deficit, Gov. Brown called a conference with legislative leaders to decide where to cut spending. Significantly, also at the conference table was Joe Nunez, chief lobbyist for the CTA. Threatened cuts to schools were shelved. 

Brown then decided on a swing-for-the-fences strategy. He would put on the 2012 ballot a measure to “temporarily” increase incomes taxes on those who earn more than $250,000 a year and increase the sales tax by one-quarter of one percent. The state’s income tax rates are already among the nation’s highest, as are its sales tax rates.

Brown’s pitch for this measure (Prop. 30 on the ballot) has been that it’s “the people’s choice.” If they vote for it, much of the new revenue will go to schools; if they vote against it, education budgets will be cut and promised new allocations for local law enforcement will not materialize.

Not coincidentally, the CTA has thrown money at promoting a “Yes” vote on the measure. A recent poll released by a University of Southern California unit shows the measure still in positive territory, 54.5 percent to 35.9 percent. That will narrow, but CTA money may put it over.

Californians are already overtaxed and the state is too heavily in debt. In recent years the state has faced annual multibillion dollar deficits, “cured” at the last minute by accounting sleight-of-hand. 

Brown’s proposal is expected to yield about $6 billion annually. This will do nothing to stem future deficits, for neither he nor the legislature is willing to tackle the causes of much of the problem: overly generous public employee pensions and health plans.

Last year, Brown proposed a series of pension reform measures and said it was up to the legislative Democrats to respond. Not surprisingly, nothing happened. Brown is no Scott Walker and the Democratic legislature consists mostly of lapdogs dependent upon the largess of public employee unions.

Added to this self-perpetuating gridlock is the discovery that the Parks Department — and perhaps others — was sitting on $54 million of “user” fees it had collected while at the same time wringing its hands over budget cuts that threatened to close 70 state parks. These “special funds,” as they are called, represent nearly one-third of the annual state budget. The Brown Administration conceded that it has only an “honor system” to keep track of these funds.

The State Office of Finance is now investigating all of these “special funds.”

Heads may roll, but more importantly, will Finance’s report recommend an air-tight system for accounting for these funds and will the money be put to use to reduce deficits? 

Jerry Brown I unleashed a political and policy monster. It looks as if Jerry Brown II has washed his hands of reform and is standing aside, hoping the voters will give him a temporary budget “fix” while emptying their own pockets more than ever.

About the Author

Peter Hannaford was closely associated for a number of years with the late President Reagan, beginning in the California Governor’s office. His latest book is Presidential Retreats.

Letter to the Editor View all comments (20) |

Von Mises Jr| 8.29.12 @ 7:41AM

A FOX Special just showed the fate of towns in California such as San Bernardino and San Jose that had waste and unsustainable commitments. The result is simple to understand.
When these cities could no longer pay cops and emergency personnel, the gang-bangers moved right in. With no law enforcement or rescue services, they knew they were unopposed.
People had to shore up their doors and windows with iron bars and could not go out after dusk. They created their own prison with debt.
Can anyone in DC ask the new Revolutionary President of Mexico if he wants California back?

TLP| 8.29.12 @ 7:59AM

As California goes. So goes the Nation.

Pick up a New York Post. See the Daily Conga Line of Public Officials with their hands Cuffed behind their backs. Blacks,Whites, Puerto Ricans, Catholics, Baptists, Jews, Men, Women, and every combination of the two.

Democrats all.

Bribery. Bid Rigging. Insider Trading. Fraud. Stealing from Charities. Stealing from Churches. Stealing Funds for Parks for KIDS. Using Million$ in Taxpayer Money to set up their Relatives with Big Bucks No Show Jobs.

They're ALWAYS all Democrats.

In New York. In Philly. In Newark and Camden. In Baltimore and Cleveland, Detroit and Gary. In Oakland and Milwaukee, Chicago and Albany. It never changes. Sticky Fingers, and other people's money. DEALS, and other people's money.

We see it every day in every Borough and Precinct, every City and Town, at every level of Municipal and State Government.

One need only look at the White House, and its High Stakes Poker Racket with our Tax Money, to the tune of $7 Trillion in New Debt, spread out to to The Muslim's Cronies, and Union Thugs. Bundlers and Bone Breakers. Selling his Snake Oil to the Worse off, Stupidest, most Ignorant among us, on the need for US to SACRIFICE. To expect LESS. And to Revile anyone who has done Better than they have, in their life, while he lives like A KING, enjoying only the Best of Eveything, and his Jewel bedecked Marie Antoinette walks around in $600 Sneakers, carrying a Pocketbook, that costs more than a Mortgage Payment.

c. j. acworth| 8.29.12 @ 8:08AM

Not to change the subject, but have you noticed it's the same with energy/environmental/global warming policy? Al Gore jets around the world in private planes with Leonardo diCaprio and has the balls to tell working folks that WE have to cut back? They think they are the new Royalty. Well, off with their heads!

RCV| 8.29.12 @ 11:37AM

Oh right, those Democrats like Cliff Steans, Charlie White, David Rivera, Duke Cunningham, Jack Abramoff, Tom Delay.....

TLP| 8.29.12 @ 2:58PM

Do you really wanna compare the numbers?

I don't think you do.

TLP| 8.29.12 @ 3:28PM

Charlie Rangel, William Jefferson and his Freezer full of Money. Every Black Mayor of Detroit, Trenton, Philadelphia, and Baltimore, as well as Mayor "The Bitch set me up" and his Crack Pipe, in D.C.

Rod Blagojavich, Elliott Spitzer, John Conyer's Daughter, Anthony Weiner, Weiner Boy Barney Frank and his Ticket Fixes and his Gay Whore House in his D.C. Dwelling, and Alcee Hasting - the Bribe taking IMPEACHED former Florida Federal Judge.

The RAPIST - Bill Clinton, $100,000 Stock Trader Hillary Clinton, and "My wife is DYING FROM CANCER, do you wanna go out and have Sex?" - John Edwards.

Every Democrat in every Borough of New York. Every Democrat in Chicago. The late Unindicted Co-Conspirator in ABSCAM, from Pennsylvania. The Murderer of Chappaquidick - Ted Kennedy, John Daley Sr. John Daley Jr. The Fat Mexican - Bill Richardson. Henry Cisneros. Maxine Waters and her Husband's Bank. Eric Holder raking in Millions by - as the GAO put it -"Cooking the Books at Fannie and Freddie, with Franklin Raines and Jamie Garelick, to get BONUSES". As well as Dianne Feinstein, steering Government Contracts to her Husband's Company, while on a Senate Appropriation Committe, which she Quit, when her Husband Retired from those Companies.

Do I really have to keep going, Dumfck?

Cause I can.

Pecos Pete| 8.29.12 @ 8:09AM

I departed LaLa Land in 1985 taking my plant and employees to Kentucky. Pretty soon now California will tax itself out of existence throwing itself on the mercy of the federal government. Maybe then the legal definition of California will be changed to a territory under the management of public unions ... sort of like General Motors which will soon be bankrupt once again.

And you say California will not be bailed out? If King O is reelected there will be an executive order cut to send them enough money to survive until 2016 and to continue building their railroad to nowhere. Oh crap, California is such a mess it is a waste of time to even try to reform it.

Rhoetus| 11.24.12 @ 12:37AM

Just stop paying or move, I moved to AZ in 1987. Calif. RIP

Kwan| 8.29.12 @ 8:33AM

Commonsense has long been absent in California. Leftist tax and spend politicians continue to grease the skids, so that the once Golden State can descend into insolvency. Yes converting California into Detroit, Michigan is hard work, but Democrat politicians are up to the challenge, and are working night and day to achieve this coveted transformation.

Harry the Horrible| 8.29.12 @ 9:28AM

There is plenty of common sense in California. It just doesn't live in the urban coastal areas of that state, which pretty much run the whole state. Witness Victor Davis Hanson.

I feel about them like I feel about the white farmers in South Africa - "Guys! What are doing still living there?"

TLP| 8.29.12 @ 2:59PM

Exactly.

You can throw in The Christians living in Satan's Islamic Lands, as well.

Albert Constantine Jr.| 8.29.12 @ 9:45AM

As someone who has earned 30 years of small paychecks from the government (in defense and law enforcement), I understand the temptation that comes from the notion that funding a lot of government will give you a safe and compassionate civilization. Unfortunately, the results are usually quite the opposite.

An underclass expands and quickly absorbs all entitlements, making them unsustainable, as the government programs to service this group or protect others from them quickly overwhelm the resources derived from productive activities that make for prosperity. When a society's middle class is primarily civil servants and not those whose income derives from the private sector, collapse is not far away.

Albertus Magnus| 8.29.12 @ 11:04AM

You have just described in a nutshell, the fall of ancient Rome. History repeats.

Houdini| 8.29.12 @ 10:27AM

I grew up in California (50's) when it had some of the best schools in the nation, great weather...and then the public employee unions took over, literally destroying the state in only one generation. California is fast becoming Greece with no plan to fix its problems. The only hope for California's politicians is the re-election of the village idiot and the bailout sure to come. For the citizens....not so much.

Albertus Magnus| 8.29.12 @ 11:01AM

Government employees should not be allowed to be members of unions. This is an inherent conflict of interest. Government employees are paid out of taxes drawn from the private sector and union dues are paid from that. Union dues then in turn pay for the elections of union friendly politicians. The taxpayers are in fact subsidizing the elections of Democrats who then vote to take more tax money out of the private sector to further fund unions who further fund Democrat elections. Jerry Brown is nothing more than a cheap, sleazy, corrupt politician who personally and professionally benefits from this arrangement. By electing this crook, California has proven that it is a hopeless mess or corruption and thievery. As Obi-Wan Kenobi would say, Sacramento is a "wretched hive of scum and villainy."

Houdini| 8.29.12 @ 11:48AM

AMEN

Dave Williams| 8.29.12 @ 12:53PM

California, a perfect laboratory where we can watch leftist policies unfold in all their idiotic, destructive glory. Kind of funny in a way....but unless we turn this country around, that's where the nation as a whole is headed, with North Korea just around the corner. OBAMA AND THE DEMS MUST GO!!!!!!!

Skippy| 8.29.12 @ 5:22PM

As a Californian, I welcome the bankruptcy we have so diligently worked for.
The complete collapse of the State, complete with the gnashing and rending of the annointed public employees will be sweet music.
Then we can rebuild on a solid foundation of capitalism, natural resource utilization and free enterprise.

Rhoetus| 11.24.12 @ 12:38AM

Here here!

Carroll | 8.29.12 @ 11:23PM

we will reading it ,,,thank you
Californians are already overtaxed and the state is too heavily in debt. In recent years the state has faced annual multibillion dollar deficits, "cured" at the last minute by accounting sleight-of-hand.

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