What are some of the major factors (political or otherwise) that influence the budget process?

Question

What will be an ideal response?

Answer 1

Varies. (1) The larger economic climate affects how much money is available: in bad economic times, far less revenue (sales tax, property tax, corporate tax, and income tax revenues) will flow into the state, forcing politicians to either raise taxes further or make spending cuts. (2) The state's general fund depends heavily on volatile sources of revenue such as personal income taxes, which are in turn strongly dependent on the larger economy, and relies heavily on high-income earners who are especially vulnerable to changes in larger economic tides. (2) The political climate can influence what kinds of issues get funded, and which get less or no funding. (3) Special interests and their lobbyists strongly prevail because they tend to participate heavily at every stage of the process, voicing their concerns and pressuring lawmakers to respond to them. (4) Legislators subject to term limits generally do not have enough experience to understand the process and the issues thoroughly, although this has been a bigger issue for new members (who have tended to be in the Assembly, but newer term limits are resulting in more brand-new senators). The extension of term limits to 12 years is expected to mitigate this issue somewhat. (5) Ballot-box budgeting. Through initiatives, voters limit the choices lawmakers can make. Example: Proposition 13, which severely reduced the amount of money available through property taxes, and imposed a two-thirds supermajority vote to increase taxes. Prop 98 (minimum funding levels for education) is another example. (6) Rules: whether a simple majority is required to pass the budget, taxes, and/or fees (minority votes aren't needed), or a supermajority is needed (compromises with the minority party will be necessary). (7) Ideological differences and partisan approaches to governing: increasingly, the two parties have been unwilling or unable to reconcile their fundamental political differences; the most visible difference lies in the Republicans' refusal to raise taxes, and the Democrats' opposition to cutting certain social services.