Brown’s budget both sensible and careful

While we don’t like or trust Gov. Jerry Brown’s twin-tunnel project, when it comes to developing a state budget – especially in the face of a drop in tax collections – there is no one we’d rather have with his hand on the wheel.

Gov. Brown was very cautious as he offered up his revised state budget last week. His parsimony was only vaguely embraced by many Democrats; Republicans actually found more to like but also saw plenty of nits to pick.

In other words, it’s a thankless job for any governor. But it’s important. And Brown’s insistence on continuing to build the state’s rainy-day fund while making modest increases for Medi-Cal and an increased minimum wage are appropriate.

Because legislators can approve the $173 billion spending plan by a simple majority vote, Republicans have become almost irrelevant in the budget process. There will be, however, one notable exception. Brown is joining the Senate Democrats’ push for a $3 billion housing bond to help homeless people, many of them mentally ill, secure shelter. As part of that plan, the state would shift $2 billion from mental health programs funded by the Proposition 63 tax on wealthy Californians.

To do that, the governor and Democrats would need Republican support. We like the homeless housing plan, so long as worthy programs for mentally ill people are be shortchanged.

Homelessness has become a statewide epidemic. It’s as much a problem in Los Angeles as it is in Modesto or Ceres or San Francisco. Something must be done, and we’re glad Gov. Brown and the legislators are trying to do something.

One of the programs we like was suggested by Assemblyman Adam Gray, who suggested the state develop a earthquake early warning system. Brown put $10 million in his budget just for that.

Brown’s revised budget also notes the costs of programs intended to help the working poor. More than 350,000 taxpayers got the new earned-income tax credit, and the minimum wage increase (to $10.50 in January) will add more than $39 million to state costs.

Brown used lots of charts to make his points; you can find them at www.ebudget.ca.gov. The most important was also the most sobering. Brown noted the economy is in its seventh year of expanson, and very few expansions live longer than eight years. This one might be running out of breath.

Brown didn’t take a position on a likely November initiative by public employee unions to extend an extra income tax on the very wealthy for 12 years. If voters fail to approve the tax, he noted, the next governor would face a deficit by 2018. By 2019-20, the budget would see a $4 billion shortfall. He also pointed out there are perils in extending the tax, saying the rainy-day fund would have to be greatly expanded. Noting that the wealthiest taxpayers generate half the state’s tax revenues, Brown wants a complete tax overhaul to get the state away from boom-or-bust cycles.

Republican legislators should get on board that train, even if they’re still mostly opposed to high-speed rail. And when it comes to the budget, Democrats need to follow the lead of their popular governor.

This story was originally published May 18, 2016 at 4:20 PM with the headline "Brown’s budget both sensible and careful."