State Watch

State Watch

California’s Vanishing ‘Surplus’

By 3.28.14

Last year, California’s Governor Jerry Brown proclaimed an end to the state’s worrisome and persistent deficit. How did he do it? In the 2012 election he had fed voters the notion that a proposed income tax increase would be spent on education. California voters treat education as a sacred cow, even though the state ranks near the bottom in test outcomes. They passed the ballot issue.

On January 31 last year, the state’s General Fund had a deficit of $15.7 billion. The higher tax rates brought in new money. This, along with internal and external borrowing, made it look as if the deficit had gone with the wind, but it hadn’t. Brown called it a surplus, amid much cheering by the spendthrift legislature. 

Fast forward to the end of January this year. The deficit had been whittled down to $12.6 billion. Some surplus!

State Watch

Two Thumbs Down to Boeing Subsidy

By 12.5.13

It makes your head spin! Two months ago, Gov. Jay Nixon vetoed a bill that would have provided some tax relief for all Missourians. Today he is calling for a gigantic tax cut — amounting to an estimated $150 million a year or $1.5 billion over the course of a decade — for one company.

The governor is hoping that would be enough to entice the Boeing Company to locate its 777X commercial airplane assembly plant in north St. Louis County.

In vetoing House Bill 253 earlier this year, Nixon went around the state arguing that cutting state income taxes for individuals and corporations would harm education and mental health. Where is the same concern today in offering a lavish gift to a single, deep-pocketed company?

State Watch

A $15 Minimum Wage

By 11.4.13

A small suburban Washington city of 27,000 has recently taken center stage in the national debate over living wages. Voters in the City of SeaTac will soon decide on Proposition 1, a ballot initiative to establish perhaps the most draconian employment standards in the nation, complete with a $15 minimum wage requirement.

Labor leaders are thrilled, and it’s not hard to see why: Labor support of Prop 1 appears to be part of a growing trend to promote union organizing through local ballot initiatives.

Though small in terms of geography and population, the City of SeaTac is economically significant because it hosts Sea-Tac International Airport and surrounding travel and hospitality businesses.

Prop 1’s roots go back to 2005, when Alaska Airlines replaced unionized baggage handlers with non-union contractors. Six years later, Unite Here Local 8, the hospitality workers union, spent historic amounts of money to successfully finance three city council elections.

State Watch

Christie’s Shaky Signing

By 8.23.13

New Jersey's new ban is an attack on liberty, religious and beyond.

State Watch

In Big Sky Country, a Big Opportunity

By 7.23.13

Montana has sent a surprising number of Democrats to the Senate. But Republicans have a real chance next year.

State Watch

Another IRS Outrage

By 6.20.13

Clinton IRS commissioner: Tax audit of Virginia farmer just "a coincidence."

State Watch

Cash for Organs?

By 6.19.13

It could ease long waiting lists. Besides, making or changing policy on an ad hoc basis for one individual is a terrible way to deal with a national problem.

State Watch

Whither Suburbia?

By 6.18.13

Urban elitists don’t recognize that their policies helped create the “sprawl” that they disdain.

State Watch

Striking the Wrong Chord

By 6.10.13

Was the storming of Gibson Guitar headquarters politically motivated?

State Watch

California Wake Up Call

By and 6.7.13

The California Dream is slumbering into nightmare.