Delegate Assembly discusses state budget, reforms 

With Gov. Arnold Schwarzenegger’s revised May options for cutting the state budget fresh in mind, CSBA’s policy-setting Delegate Assembly met in Sacramento May 16-17 to discuss, among other association business, what options could bring about sufficient fiscal reform to fix the state’s ongoing budgetary and governance dysfunction.

Following a deliberative model developed last year to establish state revenue principles to guide CSBA’s leadership and staff, the 223 delegates met in small breakout groups to suggest ways the association could most effectively engage in the growing discussion of fiscal reform.

CSBA is already exploring several options as part of the Cities, Counties and Schools Partnership, which will host a Sacramento summit in July to discuss strategies for fiscal reform. The three groups in the partnership—CSBA, the League of California Cities and the California State Association of Counties—represent the vast majority of the officials elected throughout the state, noted CSBA Executive Director Scott P. Plotkin, making it a credible, broad-based source for reform proposals.

Before the breakout sessions, two other organizations at the forefront of discussions about fiscal reform provided the delegates with an overview of their proposals.

Citing three budget debacles in less than a year, Jim Wunderman, executive director of the Bay Area Council of business-sponsored public policy advocates, said his group favors grassroots efforts to call a constitutional convention to reform a “fundamentally flawed” fiscal system.

“This is a train wreck, and we have to address it,” he told the delegates, adding that further initiatives that tinker with the existing system are not enough. He urged delegates to take the current fiscal crisis as an opportunity to “fix the [system] thoughtfully and materially.”

The Delegate Assembly also heard from James Mayer, executive director of California Forward, a nonprofit collaboration of California civic leaders and philanthropists dedicated to changing the state’s budget process. Mayer argued that the state’s greatest need is to restore fiscal stability with a less volatile revenue stream, more discipline over spending, and a new budget system that allows policymakers to establish priorities and pursue long-term goals in areas like health care, transportation and education.

Delegates weigh in

In 10 breakout groups, CSBA delegates then discussed how the association might contribute to the debate about fiscal reform in the state. Reports from each group indicated there is general support for the reform principles drafted by the CCS Task Force in early May, which focus on restoring local control and accountability to local government agencies; greater transparency and accountability to voters at the state and local levels, with a majority instead of two-thirds vote requirement in budget matters; a performance-based, multiyear budget process for the state; and periodic review of state government processes.

While the dramatic statement of calling a constitutional convention had some appeal, many agreed, the groups had concerns about the unintended consequences it might produce. The groups encouraged the association to explore other viable options to bring about the needed reforms and advised that if a convention to explore revising the state constitution were to take place, the scope of its work would need to be limited and clearly defined.

“Let’s be careful what we wish for,” Plotkin agreed in his report to the Delegate Assembly the morning after the deliberations. “There has got to be some sense of structure, some sense of where we want to go” in a constitutional convention, he said.

CSBA will distill the common themes from the breakout discussions to guide its work during the July CCS Partnership summit.

Stimulus dominates other issues

The Delegate Assembly also heard updates on education issues and CSBA’s range of efforts on behalf of public schools. The federal American Recovery and Reinvestment Act’s $8 billion infusion of cash to save education jobs and advance school reforms in California generated much discussion. Many delegates sought guidance on the use of State Fiscal Stabilization Funds being released as part of the federal economic stimulus program.

Plotkin said officials sent mixed signals on the subject during recent meetings in Washington. D.C. (see related stories on CSBA’s Federal Issues Council beginning on page 5). With further state budget cuts sure to come, he advised delegates to be very careful when deciding how to use the stimulus funds.

“Our consistent message is, don’t do anything that closes off your options,” he warned. “Hold off on most of the decisions you have to make until you absolutely have to make them.”