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Has the pandemic ended the state's budget obsession?

Has the pandemic ended the state s budget obsession?
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California Gov. Gavin Newsom outlines his 2021-22 state budget proposal this month in Sacramento.Rich Pedroncelli / Associated Press
In the midst of California’s pandemic catastrophe, we may be seeing, at long last, the demise of the dominant mode of thinking of our state’s leaders: “budgetism.”
Budgetism is the false and conventional wisdom promoted relentlessly by our state’s media and by elected officials of both parties that the real measure of California’s success is the condition of the state budget.
For decades, if the budget was balanced or in surplus, California was supposedly on the move, a superpower, or even a national model of success. If the budget was in deficit, California was supposedly in crisis, a failed state, or a cautionary tale of excessive ambition. ....

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California's fixation on balanced budgets has compounded the state's big problems

California’s fixation on balanced budgets has compounded the state’s big problems
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Gavin Newsom meets with Toni Atkins, Anthony Rendon, Holly J. Mitchell and Phil Ting to discuss California budget.
Photo by Office of the Governor of California, Public domain, via Wikimedia Commons
Zocalo commentator Joe Mathews has come with a word that describes what he calls the state’s obsessive and unhealthy aversion to red ink: budgetism. Balanced budgets are generally a good thing. Even in this pandemic year, they’ve provided California with a surplus that will come in handy as revenues dip and Covid costs pile up. But Mathews says balanced budgets can also reflect a timidness to address California’s big problems, such as homelessness, a housing shortage and a healthcare system that was unprepared for the coronavirus onslaught. Mathews says politicians should show a willingness to borrow more and take bold steps. ....

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Despite Past Economic Boom California Dream Index Finds Unequal Growth In Overall Economic Mobility Pre-Pandemic

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SACRAMENTO, Calif., Jan. 14, 2021 /PRNewswire/ Even though California enjoyed a historic boom during the past decade, the addition of 2019 data into the California Dream Index announced today by California Forward confirms that prosperity was not experienced evenly by all Californians. The overall California Dream Index rose or stayed flat in all of California s regions from 2010 to 2019 with the exception of the Redwood Coast which slightly declined. The Sierra Nevada Counties near Lake Tahoe saw the greatest gains during those years.
The data shows the hard reality that equity stagnated while wealth grew massively, even before the COVID-19 inequality bomb hit, said Micah Weinberg, CEO of CA FWD. The California Dream Index is a necessary tool as we work to reimagine an economy that is more equitable, just and sustainable for more Californians. ....

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