If you think the fiscal situation in Maryland is bad, check out California:
The state, nearly out of cash, has laid off scores of workers and put hundreds more on unpaid furloughs. It has stopped paying counties and issuing income tax refunds and halted thousands of infrastructure projects.
…Twenty-thousand layoff notices will go out on Tuesday morning, Matt David, the communications director for Gov. Arnold Schwarzenegger, said Monday night.
California has also lost access to much of the credit markets, nearly unheard of among state municipal bond issuers. Recently, Standard & Poor’s downgraded the state’s bond rating to the lowest in the nation.
Why is California in such bad shape? One reason: “The state, unlike most others, requires a two-thirds majority vote in the Legislature to pass… tax increases.” The Maryland GOP recently proposed that Maryland follow California’s lead:
This week, Senator Andy Harris (R-7) and Delegate Steve Schuh (R-31), with joint support from the Republican Caucuses in the State Senate and House of Delegates, introduced the “Taxpayer Protection Act”.
…This exciting piece of legislation would require a 60% vote in each chamber to raise existing taxes or create new ones.
No one wants tax increases. The Maryland legislature, where both chambers are dominated by Democrats, is not actively considering any tax increases this session. But in a time of deep economic uncertainty, Maryland should remain nimble.
The Maryland GOP, of course, knows that their proposal has no chance of becoming law. But they’ve polled the issue and have decided it’s a political winner. It’s a safe bet, however, that they didn’t tell people about the consequences of similar restrictions in places like California.