Campbell’s 2005 Budget: Increased Spending, More Borrowing

While serving as Director of the California Department of Finance in 2005, Campbell championed a bloated budget that included the largest year-over-year increase in state general fund spending to date. According to the Legislative Analyst’s Office, his budget added “several billions of dollars” to the state’s projected budget shortfalls. This budget was based on faulty and politically expedient assumptions that set the state up for its total budget collapse in 2007.

• Lynda Gledhill, “Schwarzenegger, Top Lawmakers Reach Budget Deal,” San Francisco Chronicle, 7/6/05
• Alexa H. Bluth, “Governor Caught In Spending Trap,” Sacramento Bee, 8/14/05
• Gary Delsohn, “Plan Relies Heavily On Borrowing,” Sacramento Bee, 1/11/05
• California Legislative Analyst’s Office, “California’s Fiscal Outlook: LAO Projections 2005-06 Through 2010-11,” 11/16/05

Campbell Refuses To Sign The “Taxpayer Protection Pledge”

Tom Campbell believes that tax hikes are a legitimate budget-balancing solution. He refuses to sign the Americans for Tax Reform’s Taxpayer Protection Pledge because he wants to give himself the “flexibility” to raise taxes in the future. His response to the President’s State of the Union address also left the door wide open for new taxes; in fact, his comments insinuated that tax increases might even be a necessity at the federal level.

• Joel Fox, “Campbell Defends Fiscal Record As He Campaigns For U.S. Senate,” Fox & Hounds, 1/19/10
• George Skelton, “What If He Had The Money,” Los Angeles Times, 10/12/09
• Tom Campbell, “A Freeze on Real Solutions,” Orange County Register, 1/28/10

Campbell Supported A $16 billion Increase In State Taxes

In 2009, Campbell supported Proposition 1A, which would have extended $16 billion of “temporary” tax hikes. The increases in sales taxes, income taxes and vehicle taxes were shaky fiscal policy to begin with; extending them would have hurt Californians even more. Fortunately, California voters overwhelmingly defeated the measure 65 percent to 35 percent.

• Debra Saunders, “Campbell Is Banking On His Experience,” San Gabriel Valley Tribune, 4/12/09
• Kevin Yamamura, “Brown Says Prop. 1A Will Help ‘Next Governor’,” Capitol Alert, 4/14/09

Campbell Proposed Increasing The Gas Tax By 32 Cents And Would Not Rule Out Adding Internet Taxes, Carbon Taxes and Business Taxes To Fix The Budget

As a candidate for governor, Campbell’s proposal to close California’s budget deficit included increasing the state’s gas tax by 32 cents. He has also said that he would consider adding taxes on the Internet, carbon and business receipts to help support more government spending in California.

• Peter Nicholas and Evan Halper, “State Gets A New Finance Chief,” Los Angeles Times, 11/5/04
• Ken McLaughlin, “Can Tom Campbell Upset Billionaires Running For California Governor?,” San Jose Mercury News, 6/19/09
• Stu Woo, “California’s Ills Aid Candidate,” The Wall Street Journal, 8/18/09