California’s budget is a mess, and has been since the big dot-com bubble burst. This is nothing new, and has been a political campaign topic at the state level for about ten years now. I don’t post about it much, but somehow every time KC Meesha gretches about his taxes, I end up steamed and monopolizing his comment section. I totally understand where he’s coming from on paying taxes in a town where he works but doesn’t live, and delight in pointing out the fact that he’s unable to do anything about it. I think he takes it quite well.

What got my goat, however, was a flyover-dweller bitching about California looking to get a little money from the federal government to cover our budget shortfall. Specifically “I Travel for JOOLS” brought this up:

And I just ran across this little article. The money quote, California’s unionized public employees can retire at 50 and receive 90 percent of their last year’s pay FOR LIFE !

AND THEY WANT US TO BAIL THEM OUT ????

http://www.washingtonpost.com/wp-dyn/content/article/2010/01/08/AR2010010803593.html?nav=rss_opinion/columns

First, pensions are paid by the pension fund, not by the state directly. Second, she’s citing an article by George Will, who doesn’t know his ass from his elbows regarding how California spends its money. Third, she’s using all-caps, which I find obnoxious. Fourth, she’s using excessive punctuation (one question-mark is sufficient, folks). All of this just serves to raise my hackles regardless of the actual merit of her point, which is rather seductive: California is spending its way into this mess, why should the rest of the country be burdened by this?

Let’s take a look, shall we?

Where does California get its money? Specifically the general fund money that our congress-critters get to fiddle with every year? ebudget.ca.gov provides a nice little summary:

Mostly from income taxes and sales taxes. I see money come out of my paycheck every week on one, and see the other nearly every time I buy anything. I’d just as soon leave these alone or lower them.

Where does the money go? Again, ebudget provides a summary:

Education takes up almost 58% of the state budget. Ouch. That looks like a great place to look for fat to trim. It’s also a political landmine to go anywhere near that portion of the budget without alarming reactionary parents and grandparents. Grandparents vote, you see.

Health and Human Services makes up the next biggest slice of general fund, at about $21,000,000,000. This is the nebulous government waste that I think most libertarians and tea-party types are talking about most of the time that they whinge about government waste. If the federal congress were actually trying to fix health care, this could have been reduced significantly (partly through increase systemic efficiency but largely through federal spending). But they aren’t.

Which brings us to: where the hell is all my tax money going?

I pay my taxes like a good citizen. I look for whatever deductions and credits I may be legally eligible, of course, but I understand that taxes are the price I pay for having a variety of safeguards and comforts that many others in the world don’t enjoy (into religion? love guns? hate paying taxes? you’d love it in Somalia!). But the bulk of the money coming out of my paycheck doesn’t go to Sacramento. It goes to Ogden, Utah. Where the IRS collects my annual 1040 form. So what happens to Californians’ federal tax money?

On the California income tax table, if you earn $70,000 a year (median income for a family of four in the state), and you somehow haven’t managed to deduct your way down to a lower bracket, you pay $2,304 in state income tax. Conversely, the US income tax for that bracket is $9881. That’s a very sloppy calculation, based on $70,000 taxable income without all the typical deductions and such, but really it’s just to demonstrate the proportions involved. I can expect to pay a quarter as much to the state as I do to the federal government in income taxes. It’s a good thing that comes back through federal spending, right? Right?

California produced $313,998,874,000 in gross tax revenue for the United States federal government in 2007. With a population of 36,553,215, that works out to $8,590 for every man, woman, and child. Meanwhile Missouri produced only $48,568,138,000 with their 5,878,415 people ($8,262 per capita). That’s OK, though; we have a progressive income tax, so states with higher typical wages will pay more taxes, and the difference isn’t really that high.

That said, we’re having to pull more of our weight internally than a lot of other states. For every dollar we pay into the federal government, we get $0.78 back. That’s $69,079,752,280 coming out of California taxpayers’ pockets that is landing in places like Missouri that gets back $1.29 in spending for every dollar of federal taxes they pay. Heck, it’s more than the entire tax contribution of that state by a significant margin. It’s also about 75% of our proposed state budget for next year.

I suggest that the Republicans in Sacramento have got it right: we don’t need to raise fees or taxes on Californians. I also suggest that Democrats in Sacramento have it right: we have much-needed health services, correctional institutions, and schools that really need to properly-funded. We need our representatives in Washington DC to start representing us better.

When the revised health care bill kicks its way back to the House of Representatives, Lynn Woolsey and other “progressive” Democrats should demand a better deal. If Woolsey isn’t going to get the public option she wants (much less single-payer), then she should get additional funding for the Palm Drive hospital in Sebastopol and the Sutter Medical Center in Santa Rosa. California should get the same kind of treatment Nebraska gets for Medicaid costs. If her party wants her to swallow her liberal principles to vote for an imperfect bill, she should bring home some bacon for her constituents.

The same goes for our other representatives of both major parties: put your constituents ahead of your party and secure funding for local projects. Your voters are paying for roads and bridges and schools and hospitals and army bases elsewhere, let that money flow back home.

*Mea culpa: I seem to have put a totally ludicrous figure on KC Meesha’s comments page about how much folks in Missouri pay per capita to the feds. I don’t know where that figure came from, but I noticed it while I was writing this up.

*edit: out of ignorance I had some gender pronouns wrong there.

You don’t get many profiles in political courage these days. You get some grandstanding, of course. There are plenty of nutcases that have been put in office, particularly at the state level and in the House of Representatives, sure. But every once in a while you get somebody like Ben Nelson that’s willing to recognize a situation for what it is and act appropriately, even at the risk of burning his colleagues and open himself up to pressure from his own party on a high-profile issue like health care reform.

Nelson isn’t a pro-choice Democrat. I’m not from Nebraska, but so far as I can tell he never has been. The people who voted for him weren’t looking to enshrine the reproductive rights of women. There was a perception that the health care reform bill before the Senate would result in taxpayer money subsidizing abortions, and the Democratic party was scratching and scraping for 60 votes to get cloture. Ben Nelson was in a position to be the 60th vote, the last senator to commit to a “yes” vote. He could have taken the easy route and gone with his party on an issue that was important to the president. He could have taken the somewhat harder route and stuck to his avowed principles regarding the sanctity of human life.

He did neither. He rolled up his sleeves and got to work for his constituents. He burned his party and his ideals, holding out until he could get the best deal possible for his state. Nebraska is set to enjoy a tremendous advantage in Medicare compensation, at a savings likely to total in the billions as health care costs increase for the other 49 states in coming years (barring any actual substantive reform, which doesn’t look likely at the moment). Good for you, Ben Nelson. Good for Nebraska. Bring home the bacon for your voters. I wish my representatives had done the same.