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Green Watchdog 2003: 10 Recommendations To Address California's Budget Crisis & Protect California's Environment and Public Health 2/4/2003 Green_Watchdog_2003.pdf

Executive Summary

The fiscal watchdog for California's environmental movement, Green Capitol fights to expose irresponsible government taxing and spending practices that destroy California's unique environmental assets.

California faces a dire budget shortfall that demands innovative solutions, such as the recommendations presented in this Green Watchdog report. Last year’s multi-billion dollar deficit was resolved only after the longest budget debate in California’s history. California now faces an estimated $26-$35 billion shortfall through June 2004 that dwarfs last year’s budget crisis.

To help address this difficult financial situation, public interest organizations have identified ten opportunities to reduce significant General Fund expenditures while reforming and improving the way environmental and public health programs are funded. Programs are targeted in this Green Watchdog report because they displace scarce General Fund dollars with more appropriate fees on those activities and entities that pose a threat to the environment and public health. Green Watchdog’s ten recommendations would provide General Fund savings of more than $5.6 billion over the next five years, more than $1.1 billion this year alone.

Sensible Budget Priorities
Green Watchdog is a blueprint for sensible budget priorities. Over 30 organizations, including taxpayer, environmental, public health, consumer and others, have endorsed its recommendations to make polluters and corporations pay their fair share. The groups endorsing Green Watchdog have united around a common goal: Implement Green Watchdog recommendations before further cutting environment, public health or other important programs.

Double Benefit Of Recommendations
Every year, California spends millions of taxpayer dollars on programs and subsidies that harm our natural resources and threaten public health, while letting polluters off the hook for their harmful activities. The expenditure of the General Fund on these programs and subsidies shifts costs to the taxpayer that, according to the “polluter pays” principle, should be borne by those who harm the environment. The Green Watchdog report marks a significant step towards eliminating wasteful and environmentally harmful spending from California’s budget and making polluters responsible for the costs of their pollution.

Need For Reform
Critical environmental monitoring and enforcement activities are now threatened by California’s budget crisis. To compensate for the deficit Governor Davis has requested that each state agency plan for a permanent 20 percent cut in their budget. These cuts will cripple already struggling environmental and public health programs.

Environmental programs have always been a very small part of the state’s General Fund budget. According to the Legislative Analyst’s Office, in 1998-99, CalEPA and Resources Agency programs accounted for 2.2 percent of the GF expenditures. During the budget surpluses of 2000-01, that amount increased to 3.3 percent. But only two years later it is now down to only 1.6 percent of the GF, significantly lower even than the pre-surplus years. And even the “high-water mark” did not meet all needs. To cite one example, in 2000, the Legislative Analyst examined water pollution monitoring activities and wrote, “Compliance assurance and enforcement activities are not being carried out, while other activities are not being carried out effectively.” Yet the Governor’s proposed 03-04 budget makes substantial cuts to the state’s ambient water monitoring programs.

From dirty air to contaminated water to toxic pesticides, pollution in California is a growing public health concern. For example, more than 29.6 million California residents are breathing dirty air due to high levels of ozone, according to EPA figures, compared to 28.1 million Californians two years ago. Ozone is an intensely irritating gas, damaging lungs and airways, causing them to become inflamed, reddened and swollen, resulting in coughing, burning sensations and shortness of breath. Longterm exposure to ozone reduces lung function, causes asthma in children, exacerbates problems associated with asthma (especially in children and the elderly), emphysema, chronic bronchitis, and other respiratory ailments, and causes birth defects. Asthma rates in California rates have risen 160 percent since 1980.