To anyone watching the epic struggle to pass a California state budget, the conclusion is obvious. California state government is broken. Our financial disarray is leading to crumbling schools, declining health and human services, collapsing water systems and politicians so entrenched in their ideology that they have lost the ability to lead.
In the middle of the worst economic downturn in recent history Californians are raising taxes, because we have no choice. We have painted our state into a corner.
To address California’s systemic budgeting and financial dysfunction the Sierra Business Council is joining the growing call for a new state constitutional convention.
Over the years Californians have used the initiative and referendum process to amend our state constitution. In the past, we’ve piled amendments on top of amendments, fundamentally altering the ability of state government to function efficiently.
We have created an unmanageable financial structure, enabling a wild cycle of boom or bust with excess revenue being spent unwisely in good times, and shortfalls forcing us to make cruel cuts in services to the most needy in hard times.
California’s Byzantine system of state finance has led to annual budget instability that has driven deficits to unsustainable and dangerous heights.
This matters to the Sierra Nevada because we cannot achieve our long-term goals – a more livable, prosperous and equitable future – if state government is unstable, unmanageable and unable to act as a predictable partner.
Every year local governments are at risk of legislative raids on funding that will cripple their ability to provide services. Every budget cycle we engage in the same charade—How hard will local government need to fight to protect our revenue from dysfunctional state government? This dysfunction pits local against state interest, meaning that a relationship that should be a productive partnership is characterized by mistrust.
In the mean time, the issues that Sierra Nevadans care deeply about – the health of our communities, our ability to create economic opportunity, the future of our children, and the sustainability of our natural resources – continue to languish.
The reality is that unless we address the fundamental problem of the dysfunction embedded within state government’s financial structure we will be repeating this charade again and again.
Our state founders gave us a tool to deal with this issue; the ability to call a constitutional convention. A convention can either be called by a two-thirds vote of the legislature or by the people meeting in a ‘Citizens Convention.’
There is precedent for a constitutional convention in California. We held one in 1849 and again in 1878. We convened a ‘California Constitution Revision Commission’ from 1964 to 1976 that put dozens of reforms on the ballot.
Constitutional conventions are fairly common in the United States; in many states they can automatically occur every 10 to 20 years. The average constitutional convention takes about 3 months to convene and complete its work. A convention could be limited to addressing fiscal, governance and taxation issues, and proposing a series of reforms that would be placed on the ballot for approval by the voters.
One of California’s leading business organizations, the Bay Area Council, has stepped forward to lead the effort to call a new state constitutional convention. We applaud their leadership and join their efforts.
Some of the ideas up for consideration could include: creating a more accountable two-year budget cycle; reconsideration of extending term limits; creating an open primary system; automatic sunset clauses on legislation, programs and agencies; reform of the fiscal relationship between state and local government; changes to tax policy; removing the 2/3 majority requirement for a state budget; and dedicating funding streams for specific purposes.
To be effective such a convention will truly call on us to be ‘post-partisan.’ We will need to listen to new ideas, rise above special interest, make real sacrifices, and be willing to give up some sacred cows in exchange for achieving a greater good.
We need a constitution that meets the challenges of our time and the reality of a 21st century society. California’s constitution needs serious structural reforms chosen and approved by the people. We need a constitution that achieves its intended purpose to create a stable foundation for governance.
For more information about the effort go to bayareacouncil.org.
~ Steven Frisch is the President of the Sierra Business Council – a nonprofit association of more than 750 businesses pioneering innovative approaches to foster community vitality, economic prosperity, environmental quality and equity in the Sierra Nevada. Visit sbcouncil.org for more information.



