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No California State Budget Despite Defection of One Republican State Senator and Pledge from Governor Schwarzenegger to Reduce “Operating Deficit” to Zero by Line Item Vetoes

By Frank D. Russo

Despite threats that it may cost him his Senate seat, Republican Abel Maldonado broke ranks with his fellow party members and cast a ballot for the California state budget bill and all the associated traler bills that relate to it. These bills did not pass even with 25 Democrats all voting for it and Maldanado making the 26th vote because 27 votes are needed to meet the two-thirds required by the California State Constitution.

Maldonado said: "I think a vote for this a budget is for fiscal responsibility. If I lose my election for a balanced budget that doesn't raise taxes, than that is a price I am willing to pay."

Governor Schwarzenegger issued a statement tonight after the Senate failed to pass a budget as he had urged, and revealed that he had promised Senate Republicans that he would use his “blue pencil” authority—under which he can eliminate entirely or reduce any item in the budget—to reduce the operating deficit to zero. This had been the stated goal of the 15 Republicans in the Senate as to the budget itself. Despite continued rhetoric, this removed the fiscal fig leaf from the Republicans’ intransigence, as Maldonado said when he announced he was voting for the budget.

The Republican Senators are demanding that California Attorney General Jerry Brown be precluded from enforcing the California Environmental Quality Act (CEQA) as far as it relates to global warming and perhaps several other non budget related changes before they will vote for the budget. Schwarzenegger, while not opposed to some changes in CEQA in this regard, nevertheless opposes this holding up the state budget.

The Republican Senate caucus made an agreement that none of its members would vote for the budget unless a majority of them were willing to do so. This puts them at odds with Democrats who have strong majorities in both houses of the California legislature, their Republican counterparts in the Assembly, and a Republican Governor.

Senator Don Perata told reporters after the vote that he had done all he could to listen to Republicans in his house on the budget but that he saw no signs of getting the last single vote needed from them, so he told Senators that they were free to go back to their districts and released them from staying in Sacramento. He warned them that they would be facing a number of angry constituents when they returned home.

Perata said, “It was clear that Senator Dick Ackerman and I were able to come to some kind of accord and then the next time we got together, it had all come undone.” He said that with the pact the minority party had made not to vote for the budget, no one was in charge of the 14 remaining Republican holdouts. He has repeatedly complained about Senate Republicans “moving the goalposts” and has all but given up hope that there will be a budget passed before the legislature is scheduled to reconvene on August 20.

The Senate, however, remains ready to meet again at the call of the President pro Tem should there be some new development.

Asked whether it was up to Governor Schwarzenegger to break the deadlock, his statement last night and ones that he has made in the past indicate pessimism in that regard.

Perata pointed out that the budget has no new taxes, fees or social programs and contains a reserve of $3.4 billion, $1.2 billion more than proposed by the Governor. The proposed budget initially contained a $2.7 billion operating deficit earlier this year.

He stated that Senate Republicans demanded the operating deficit be reduced to $1 billion to gain their support. When Democrats agreed to cuts to bringing the operating deficit below $1 billion, Republicans demanded the operating deficit be reduced to zero to gain their support. Schwarzenegger has indicated he will now make those painful cutst with the authority he has--once the budget has been passed, but this still has not satisfied Republicans, other than Maldonado.

“The budget is a month overdue, and payments are being cut off to nursing homes, childcare centers, public schools, community colleges and transportation projects,” Perata said. “Innocent people from all walks of life, young and old, are being hurt. I hope Republicans know what they are holding out for because I sure as hell don’t.”

There will be more articles later in the morning on the budget. To listen to Perata’s revealing press conference after the vote, go to www.senate.ca.gov/perata.

We will have specific information about the reactions of environmentalists and on the effects of the delays. Looks like this may go on for some time.

For more information about the payments already being delayed from the State Controller, see our previous article.

Posted on August 02, 2007

Comments

If the Senate Republicans are so apt to not to pass the budget. Why do we as taxpayers pay the per diem each day it doesn't pass? What if the Senate does not get paid everyday the budget is delayed? My thoughts are for the delay on the budget they should not get any money at all. They do not think about the state worker's who need thier paychecks for mortages, bills, and other things. The other thing is all the vendors the state does not pay accumulates interest. So, the Republicans are trying to squeeze from somewhere, yet in the long run we will end up paying it in interest. Go figure, the Republicans are trying to save money, but in the long run it is going to cost us more. What would happen if the state employees refused to come in to work? Our goverment would end up shutting down!! It is time the Republicans step up to the plate and resolve this very very soon.

Posted by: Sarah Shook at August 8, 2007 04:33 PM

If the Senate Republicans are so apt to not to pass the budget. Why do we as taxpayers pay the per diem each day it doesn't pass? What if the Senate does not get paid everyday the budget is delayed? My thoughts are for the delay on the budget they should not get any money at all. They do not think about the state worker's who need thier paychecks for mortages, bills, and other things. The other thing is all the vendors the state does not pay accumulates interest. So, the Republicans are trying to squeeze from somewhere, yet in the long run we will end up paying it in interest. Go figure, the Republicans are trying to save money, but in the long run it is going to cost us more. What would happen if the state employees refused to come in to work? Our goverment would end up shutting down!! It is time the Republicans step up to the plate and resolve this very very soon.

Posted by: Sarah Shook at August 8, 2007 04:35 PM

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No California State Budget Despite Defection of One Republican State Senator and Pledge from Governor Schwarzenegger to Reduce “Operating Deficit” to Zero by Line Item Vetoes

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