Cross Country: Jerry Brown Shrinks From Real Reform
Sacramento -- California has led the nation in so many ways, so it seems fitting that it is now showing the rest of us what the collapse of an overburdened welfare state looks like.</br></br>In January, Democrat Jerry Brown returned to the governor's office he left 28 years ago. He assured voters that as a seasoned government hand he wouldn't repeat the mistakes made by his novice predecessor, Republican Arnold Schwarzenegger. Mr. Brown had shown a pragmatic, pro-business streak during the two terms he served as mayor of Oakland from 1999 to 2007. Many Californians hoped that at age 72 Mr. Brown would be the first Golden State governor since before Ronald Reagan without his eye on the presidency -- and thus could make tough decisions despite the opposition of entrenched special interests.</br></br>The state certainly needs bold action: It faces an immediate $26.6 billion deficit. David Crane, a financial expert who worked for Mr. Schwarzenegger, estimates that the state's public- pension obligations could be as high as half a trillion dollars. California's credit rating is the worst in the country, and it's unlikely to return to pre-recession employment levels until the end of this decade.</br></br>Mr. Brown has, at best, a mixed record so far. He won points for keeping a campaign promise and refusing to push for tax increases without having them approved by voters. But his plan to close this year's deficit -- with a combination of spending restraint and extensions of temporary tax hikes on income, sales and vehicles -- has faltered.</br></br>It looks as if the special election to pass this plan, currently scheduled for June 7, will either be delayed or not held at all due to inaction by the Democratic legislature. To get his plan on the ballot, Mr. Brown needs the votes of two Republicans in both the state Assembly and the Senate to satisfy the two-thirds requirement for tax increases. He's unlikely to get official cooperation from the GOP unless he gives on something significant, like pension and regulatory reform. Otherwise, he'll have to target individual Republicans with inducements.