Assemblywoman Shannon Grove released a statement Thursday stating she opposes the new state budget, claiming reckless spending and misplaced priorities.
Below is her full statement:
Assemblywoman Shannon Grove, R-Bakersfield, joined her Republican colleagues to oppose the passage of the 2016-17 state budget this week because of its record, reckless spending, and misplaced priorities. Although state revenue projections for May were down $154 million, the budget Democrat legislators approved will increase spending by $7 billion. Grove and other Republicans believe the state should prepare for the next economic downturn by spending less and saving more, and at the same time invest more on our critical transportation needs.
“Democrats at the Capitol continue their irresponsible spending habits, despite warnings of a coming economic downturn,” said Assemblywoman Shannon Grove. “They are failing to save for the future and deal with the state’s crumbling transportation infrastructure as promised, and instead they continue to waste taxpayer money.”
A recent “fiscal stress test” by Moody’s credit rating service found that California was one of the least-prepared states to weather the next recession. The State Controller also announced last week that state revenue projections were down $154 million in May from what the Governor projected. Governor Brown himself said the state could lose $55 billion in revenue over a 3-year period during a moderate economic downturn.
Spending for the high-speed rail continues unabated, despite the fact that a recent Cap-and Trade Auction funding the project only collected $10 million, an amount way under anticipated projections.
The state budget also wastefully increases spending at the Sonoma Development Center by $32.4 million after the Federal Department of Health and Human Services decided to withdraw its support for the center because its “deficiencies posed immediate jeopardy to the health and safety of SDC’s clients.”
Instead of closing this center immediately to protect the vulnerable, disabled residents, this year’s budget drags out its planned closure and sets aside an additional $14 million for “retention bonuses” for state workers. These bonuses are for workers willing to stay at any of the three state developmental centers slated for closure over the next few years.
Instead of this wasteful spending, Grove believes California should be preparing for an economic downturn. The Democrat Party’s spending plan actually puts California on the path to another fiscal crisis. According to the Department of Finance, this budget sets the state up for a $4.1 billion deficit by the 2019-20 budget year.
Grove also expressed disappointment that the majority party fails to make virtually any new investments in transportation infrastructure. Although Sacramento Democrats have repeatedly said that transportation is their highest priority, the administration is moving to cut more than $750 million from transportation projects over the next five years. The Governor also continues to demand that Californians pay a $1 billion gas tax increase and a $2 billion vehicle registration increase to fix our roads, something at Republicans have been successful at stopping.
Assembly Republicans have proposed a nine-point plan to generate billions in new revenue for transportation infrastructure and enact reforms to stretch transportation dollars to the fullest.
One a positive note, Grove was pleased that the budget includes modest improvements to the Private Attorney General Act (PAGA), a law attorneys have used to extort million dollar settlements from thousands of companies throughout California, forcing bankruptcies, layoffs, and pushing businesses to leave the state. The budget also puts an additional $2 billion into the state’s Rainy Day Fund. Although the amount isn’t enough to prepare for the next recession, it is better than nothing.
