By Tim Redmond
You know things are getting bad when John Garamendi starts talking about raising taxes.
Garamendi, the lieutenant governor, has never been known as a tax-and-spend liberal; in fact, he’s run for high office in the past on a platform of law-and-order and no new taxes. But he’s now on the Board of Regents of the University of California, and on the California State University Board of Trustees, and he sees first hand how horrible the budget situation for higher education is. And when I talked to him today at the Regents meeting, he was sounding downright populist.
“In this current budget year, the only significant tax increase has been a quarter-billion tax increase on UC students,” he said. “That’s what these higher fees are, a tax on students.”
He’s not happy with the next round of proposed cuts:
“We need to make the argument that education is the most crucial infrastructure investment the public sector can make,” he told me in an interview outside the meeting hall at the new Mission Bay campus. “California has a $2 trillion dollar economy. We can find the money for education.”
He’s right, of course.
So where would he look for that money? He told me he would support restoring the motor vehicle fee that Gov. Schwarzenegger disdainfully calls the “car tax.” He’s willing to look for a broader sales tax. He wants an oil severance tax (“Gov. Palin has it right, she taxes the oil companies.”) He’s even talking about raising the marginal tax rate on big corporations: “Chevron pays 8.5 percent, and so does a mom-and-pop outfit,” he said. “Let’s raise the taxes on Chevron.” (He did not mention raising income taxes on the rich.)
And the guy whose first campaign for governor was marked by a loud call for harsh Marine-style boot camps for prisoners is now sounding almost – almost – like a compassionate liberal. He acknowledged that the state is spending more on prisons than on education, and that the balance ought to shift. “Should we be keeping aged, blind, disabled people in prison at a cost of $100,000 a year?” he asked, and even admitted that “there are a lot of problems with the prison guards’ union contract.”
This is all interesting because Garamendi – who has served as a state senator and insurance commissioner, was a senior Clinton administration official and has twice run for governor and lost – is a fair judge of the state’s political winds. He’s running again for the top job – and clearly thinks that in 2010, the old world of no-tax rhetoric that has dominated the state for so long will have run its course.
Remember, in 2006, Phil Angelides ran for governor on a platform that included higher taxes on the rich. He got hammered, both by his primary opponent, Steve Westly, and by Schwarzenegger, and he wound up losing badly.
But the budget crisis is so bad that even Schwarzenegger is willing to raise (some) taxes – not on cars or the oil companies, but still, it’s a step. And if a candidate like Garamendi sees that the people of California are going to be open to new taxes instead of further bloody cuts, then there may be some hope for the state after all.