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The California State Budget: Comments From Speaker of the Assembly Fabian Nunez Late Last Night

By Frank D. Russo

About 10:30 p.m. last night, Speaker Nunez came out of the door of his office and answered questions from a dozen or so reporters. This is a transcript of what the Speaker said John Myers of KQED asked the first question. The question I asked and the answer I received, has been bolded.

Where did it all fall apart?

I'm getting a taste of what Senator Perata has been dealing with in this . But I will tell you --I want to reiterate what I said to you when I walked out of the Big Five meeting--because, I really meant it. I don't mean to bad mouth Senate Republicans, and at the time I said that I take back everything negative I said about Senate Republicans. And I want to be consistent with that.

There are some differences, obviously that wee expressed at the Big Five meeting, but my understanding when we walked out of that meeting is that we had an agreement on the budget. And in fact we had one.

Some time between the time that I walked from the governor[s office out the door to come upstairs and the time I walked outside, he [Ackerman] changed his mind or had second thoughts about what he had agreed to. So, I'll give him that.

We've reconvened. We talked about some of the new concerns that were raised. We're going to try to address those concerns. And I'll do the best we can to get the budget done at some part tomorrow. Let me reiterate that--to the best we can.

Why did you not get the budget done to Mr. Ackerman's satisfaction?

[Another voice] The problem, Mr. Speaker, is it CEQA?

Again, I think the issues continue to be surface issues as I describe them. Less substantive from the standpoint of me and my caucus, perhaps more substantive from Mr. Ackerman and his caucus' standpoint. But I think that the main thing to know is that from the perspective of the budget that the Assembly passed, there are no changes to that budget, maybe a change to one sentence to the budget on the health and human services trailer bill, but outside of that, it's the same budget.

There are other issues, extraordinary issues that are not related to the budget that we're going to deal with. Some of those things make sense. They're small things in my view. They're certainly bigger things to others. But, hey, if that's what it takes to get a couple of votes out of Senate Republicans, and we finally have a budget for the state of California, that's what we'll do. We'll look at all that stuff and see what happens.

Mr. Speaker, as an attorney normally you don't settle a case unless you have the approval of your client, Is this the normal course of events where people go out and make agreements and then have problems getting their clients on board?

You know, it used to be before term limits that a pretty significant number of members of the legislature were lawyers. That's not the case any longer. Although that's not an excuse for Senator Dick Ackerman because he's one of the few remaining lawyers in the legislature. You would think that that's the way that one would operate.

When I walk into a Big Five meeting, a leadership meeting, and I make a decision about any given issue and I say "This is what I maintain, then I follow through on that. It's not easy for everybody to do that. Some folks can do that and then circumstances change. And, as frustrating as that is, clearly circumstances change. The frustrating thing for me was that respect to that Bug Five meeting, circumstances changed in a matter of minutes--without an exchange with people. It was sort of unilaterally, it came to that conclusion. And I get it. I guess he's frustrated with everyone and I understand it.

But at this point it's not about individuals. It's about the vote that we need to get a budget passed for the people of California, and I think it's a big disservice to the people of this state if we keep this impasse going past tomorrow, to be honest with you. This is too far already and my hope is that tomorrow we get it done. I will say, I've been very flexible, Assembly leader Villines has been very flexible, I think Senator Perata has been extremely flexible, and, you know, we haven't seen a whole lot of flexibility from Senate Republicans.

Hopefully something will happen tomorrow. And I hope that what doesn't guide their thinking is the blogs that they will read and the papers, but instead the good judgment about what's right for the voters of California, not, you know, what this blogger or that blogger says about whether or not they're getting enough out of the budget and how they're going to look in the press.

I'm more concerned about the person I read about in the Chronicle that--a couple of people in there, one in particular that needs to have a very serious surgery but can't get the surgery done because Medi-Cal won't fully cover it. I'm more concerned about that person who has had to put off their surgery is going to have a successful surgery and it's not going to affect their health forever. I'm more concerned about the clinic that has to shut down. Or the senior center that has to get a loan and pay interest on it in order to keep the doors open. Or the community college that doesn't any money to offer Cal grants to their students. This is now affecting people in a real way, so the fun and games are over with.

[A number of questions at the same time]

The Governor is working hard. I can only say he's really working hard to get it done.

Posted on August 21, 2007

Comments

Mr. Russo,

I really appreciate your diligence in keeping us posted on the budget issue. Much of the media has just been silent on a day-to-day basis and I can tell you it is just a non-issue for those people who are not affected. Most people I tell that the state still has no budget and I am not getting paid are shocked. Your coverage has been excellent. Thank you so much!

Posted by: State Contractor at August 21, 2007 09:18 AM

Why don't we even get lipservice from the Gang of 14 that they regret that their antics are hurting thousand of infirm, elderly, and poor people, and state vendors as well. Instead, what we get from them is this "Let 'em eat cake moment" reported in today's SF Chronicle:

"While members of the state Assembly waited patiently for an evening session to begin, a number of GOP senators - including Sam Aanestad of Grass Valley, Dave Cogdill of Fresno and Jeffrey Denham of Merced - were ensconced at one of the city's fine restaurants across the street from the Capitol, enjoying cigars and fine wine."

And these clucks wonder way they have such a difficult time getting elected to statewide office.

Posted by: ROSS at August 21, 2007 09:22 AM

I join "State Contractor." Thank you.

Posted by: ROSS at August 21, 2007 09:25 AM

I really appreciate Mr. Nunez's comments, and you for writing this article. What Ackerman needs to remember is that his name will forever be tied to this budget impasse. If anyone dies, or is permanently hurt, they can point to him. Hmmmm. Do I smell a taxpayer lawsuit against this empty shirt? His actions throughout this debacle clearly illustrate his lack of substance. He is attaching his vote to passing on education spending that is inconsequential to say the least. Vote him out. PASS A BUDGET.

Posted by: Jan at August 21, 2007 10:38 AM

'State contractor' - why are you griping? You knew the risk, you took the biz anyway.

You chose to do business with a leviathan state. Maybe get out there in the free market and sell some products to real businesses and real people, and not live off the state larder?

I know quite a few businessmen in the tech sector who just won't do biz with state or Feds. Sure, they'd sell to them if they buy it off the shelf like anyone else - cash, credit card or certified funds up front, no special contracts, "90 day net", etc. The gov types just don't understand why folks don't wanna do biz with the state.

While I do feel for you that you supplied products that aren't being paid for, I am glad that spending is stalled and hope this keeps on.

If gov't were a real-world entity, we should start seeing some state layoffs now, forced mandatory time off (i.e, burn vacation time or take unpaid time off),
pension contribution reductions, etc.

30% of Calif and Fed gov't needs to be put on the chopping block, NOW - and gov't employees under 42-43 yrs old need to be converted to 401K-style defined contribution retirement savings intstad of COLA-indexed defined-benefit pension plans.

In 20-30 years from now, a great source of social stress will be from hard-working educated middle and upper-middle class folks who have fixed retirement incomes from defined-contribution plans but have to pay increased taxes to support increased payouts in defined benefit plans of state employees. People will begin to wonder wonder, "Why the hell do I have to coddle these stupid DMV employees?" - and which will subsequently turn into "Why do we even need a DMV?"

If you think Prop 13 was big, wait til this happens.

Bill Wiese
San Jose CA

Posted by: Bill Wiese at August 21, 2007 11:31 AM

Hello,

In response to Bill Wiese. I am willing to accept the risk of doing business with the state. I am willing to not get paid, while republicans hold out to cut excess spending out of this budget. It must be done.

However, what I am hearing now is that there are no major changes to the budget that was presented a month ago. Republicans are ready to pass it with some "surface changes".

I realize change is painful I will take it to get the state budget on track but if they go this far to just return to status quo, man I will be #@? upset!

Aaron Genereaux
Los Angeles

Posted by: Second State Contractor at August 21, 2007 12:17 PM

"Second State Contractor" is absolutely right. Additionally, many state contractors do what they do out of a desire to serve the public, and particularly those in need. A lot of contractors, especially those who provide personal services to the state, could be making far more money in the private sector.

Posted by: ROSS at August 21, 2007 12:31 PM

Cheers to Speaker Nunez for his real words about the importance of the budget. Real people are affected by the actions of their government.

Too bad that the majority of the Senate Republicans don't understand. They should try thinking about the people of this State a little rather than just their special interests.

Posted by: Eddie Kirby at August 21, 2007 04:05 PM

Ouch! Bill, not living off any larder here! My situation is as Ross described. I switched to public interest a few years ago so I would be able to better juggle single motherhood and work and help people who really need it. (or do only Republicans get to claim family values?) I am the result of the privatization of many state services. They pay me less than the comparable state employees and I have to pay $1000 per month in health insurance premiums for my two daughters and myself. I thank God the budget has now passed and hope to see some pay soon!

Posted by: State Contractor at August 21, 2007 07:21 PM

I know several people that work in the prison system and it seems they have all our politicians in their pocket (union). I own a small business that sell's clothing and am getting ready to shut it down due to business slowing down. But I see prison guards continue to buy large toys.They tell me not only is their job is secure and basically they do nothing but "babysit" inmates but California is getting ready to hire hundreds more of them. That and everything else going on in the prison system is breaking California awhile our schools and eldely are getting taken apart.The family values in California goverment, and their heart is with the guards union, make no mistake. People are sick and tired of this and I will be looking at moving out of California soon just so I can raise my family. Either that or I could go work in the prisons like everyone else, since it's the only secure job in the state. Corrections has a large pool of nonproductive staff.

Posted by: Brenda B at February 21, 2008 07:35 AM

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