Jonathan Coupal: Real cuts, no new taxes – let's call it a first step to reform

By Jonathan Coupal - Special to The Bee

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The February budget agreement was a huge $12 billion blow to taxpayers. Increases in sales, gas and income taxes put California close to the top, if not at the top, of the most heavily taxed states in America. The new budget plan, with no new taxes and real cuts in spending, is a significant improvement.

While no one is cheering cuts for cuts' sake, significant reductions were absolutely necessary to bring expenditures closer into alignment with revenues. Additional taxes – as even the Democrats seem to recognize – are radioactive from both a political and policy perspective. The May 19 election coupled with the massive outflow of working Californians leaving the state have rendered any revenue enhancements unwarranted.

The new proposal has real reforms in welfare. Bravo. Let's make sure that those who receive public assistance aren't ripping off taxpayers. It also appears that the state is taking its first nascent steps toward selling unneeded assets and eliminating some unneeded boards and commissions.

Jonathan Coupal is president of the Howard Jarvis Taxpayers Association and was one of the leaders in the campaign against the ballot measures in the May 19 special election.

Jonathan Coupal

While the welfare reforms are substantive, major structural reforms are still needed. Pension reform, tort reform, regulatory reform (especially with respect to AB 32 implementation) and zero-based budgeting are all the big-ticket items that are critical for the long-term economic health of California.

This proposal may very well stop the bleeding. But it is now time for major surgery.