How Jerry Brown Scared California Straight

How did Governor Jerry Brown manage to rein in spending, raise taxes on the wealthy, and plug California’s $27 billion deficit? By scaring the hell out of people.
Photograph by Mark Peckmezian for Bloomberg Businessweek

Jerry Brown is a happy man who rarely smiles. That’s because underneath all that energy and California optimism, there’s an old, practical Buddhist. This is all that can be done. We can tax the rich a tiny bit, if we do it right now and we show lots of ads of happy kids getting schoolbooks. We can build high-speed rail, if we slash aid to the poor. Brown dreams like Governor Moonbeam and governs like Babbitt. He lacks the charm and salesmanship of a politician. Or, as Warren Beatty, his friend since 1970, sums up: “I think what you’re saying is he’s not full of s- - -.”

A lot of people are saying that, now that he’s done what was long assumed impossible: balance the California budget. This is California, the Greece of America, the liberal state that wants to spend on everything and the libertarian state that won’t pay for anything. Californians are so committed to their faulty economic theory that they built laws to enshrine it: The legislature has to pass tax hikes by a two-thirds vote, and citizens can put new laws on the ballot as propositions. When Brown took office two years ago, the state had a $27 billion deficit. Standard & Poor’s rated California’s credit the worst of the 50 states, and 24/7 Wall St. ranked it as the worst-run state in its 2011 and 2012 surveys.