The headlines blared: "Budget Crisis Is Over"; "New Budget Passed & Signed".

After months of haggling, enough Democrats and Republicans finally put aside their differences and got about the business of governing the state.  A state budget was finally passed.

An examination of the budget does have some positives as far as agriculture is concerned.  The Williamson Act was fully funded by the budget.  The so-called tractor tax elimination, which was enacted two years ago, remains in force.  The proposal to raise the Mill Tax, which would have increased the fee for the use of pesticides, was eliminated.  The budget also includes a one-time allocation of $6 million in incentives for the development of biomass plants, which is a good thing for the farm community.  And the budget cuts for the University of California system seem to be small enough that the Extension Service will remain intact.

But the picture is not rosy.  This budget does not solve California's "budget crisis."  Mostly what the Legislature and Governor did was to push the problem forward to another year.  There is virtually no doubt that the state will be facing a large shortfall again next year and once again there will be pressure to raise taxes and raise fees.

As farmers, many could say we fared okay with this budget, but as business people and just ordinary citizens, we are going to suffer.  For example, each of us will be paying more each time we register a vehicle.  Other fees and taxes have also been increased.

Nothing in this budget helps solve the workers' compensation crisis that the business community faces in this state.  Each of us who runs a business that employs people will continue to feel this pinch directly.  And we will also feel it as consumers each time we purchase a product from a business in this state.

Years of legislative mismanagement and lack of leadership in Sacramento has put California in a dire situation.  For the most part, this latest budget doesn't even address most of the ills this state has.  California is continuing down the path of being a very difficult place to do business and a very expensive place to live.

The Legislature and Governor may be patting themselves on the back for the passage of the latest budget.  But the pat on the back is not well-deserved.

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