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This Year's California State Budget: Second in a Series of Essays by Sheila Kuehl--Cuts and Non-budget Demands by Republican Senators
By State Senator Sheila Kuehl
This is my fourth essay for 2007 and the second of several to come on the 2007-2008 Budget. In this essay, I will set out some of the cuts and non-budget changes demanded by the Republican Senators between August 1st and August 21st, when the budget finally passed, as conditions for their providing one more vote (25 Democratic Senators having voted yes, and one Republican Senator indicating he would vote yes at the next convening).
Request to Eliminate the “Structural Deficit”
The major budget-related change demanded by the Republican caucus was the elimination of the “structural deficit” in the 2007-2008 budget. A “structural deficit” exists in a current year’s budget when proposed expenditures exceed expected revenues. By the time the budget had failed three times to garner the final Republican vote (that last vote taking place on August 1st), the structural deficit had already been reduced to $700,000,000 out of a total budget of over $105 billion (about 6/10 of a percent).
Senator Dick Ackerman, the leader of the 15 member Republican Senate caucus, shuttling back and forth from his caucus to Sen. Perata’s office, indicated that they refused to count the more than $600,000,000 left from the 2006-07 budget that was being carried forward. He also refused to recognize the $3.4 billion dollar reserve created in the budget as being available to meet any shortfall. Even after the Governor had completely capitulated to their demands and promised to cut the $700 million by using his line item veto, his caucus continued to refuse a vote, saying that they didn’t trust the Governor and wanted to wait until the Assembly returned on August 20 to amend the basic budget bill.
Shifting Demands as to Where the Cuts Would be Taken
The Republican caucus began by detailing a number of cuts they wanted taken as a condition for providing the remaining vote on the budget. These demands continued to shift over the three weeks in August, as some were met. As observers of the caucus’ gatherings in local Sacramento restaurants reported, the Senators were “smoking cigars and high-fiving themselves and seemed pleased simply to be holding up the budget”. The Democratic caucus had already agreed to cut $1.3 billion in order to achieve a budget agreement and indicated that there was simply no more “fat” to cut, these proposed cuts, we maintained, would go right through the bones of those most needy in the state. It was a stalemate.
Requested Cuts by the Republican Caucus: Homeless Mentally Ill Programs
These funds had been proposed for cuts in the Governor’s original budget. Over the Spring deliberations by the sub-committees, the Democrats reinstated the money and it was contained in the budget voted on by both parties in the Assembly. The Senate Democratic caucus refused to agree with the Republicans on this cut, arguing that California taxpayers save $2 for every $1 spent on this program. The average cost of this program is $12,000 annually, compared to the $41,000 it costs annually to keep someone in prison. Statistics show this population is one of the highest at risk for entering prison. Funding the program means a 56 percent reduction in the number of days hospitalized and a 72 percent reduction in the number of days incarcerated.
Requested Cuts by the Republican Caucus: CalWorks, Foster Children and Seniors
The Republican caucus also wanted to eliminate funds for children whose parents had exceeded the time allowed to receive CalWorks assistance (which parents only get if they’re working or in approved training programs); cut the rates for foster care families and transitional housing for foster youth; and cut money for Adult Protective Services and a legal hotline for seniors. The Democratic caucus refused to agree to these cuts, saying that CalWorks had been reduced so much already that these cuts would create a serious hardship for families and for parents who are often working but simply not making enough money to escape poverty, and that California had always attempted to at least maintain a safety net for children. As to foster children and transitional housing, we indicated that every year, 4,000 youth are emancipated from the foster care system without being adopted. Of those, 65 percent have no place to live, 51 percent are unemployed and 59 percent receive Medi-Cal. Emancipated females are four times as likely to receive welfare as other young females in the state. We also refused to acquiesce to the cuts for senior programs.
Requested Reductions in the Time Government Positions are Held Open
Under the budget as passed by the Assembly, open positions would be held open for a year, as it is often difficult to recruit and employ the great variety of experts necessary in the several technical branches of the executive branch, scientists, mathematicians, researchers, and a myriad of experts. The Republican caucus insisted that, if jobs were not filled within six months, they must be eliminated.
Non-budget Item:
The Republican caucus expressed a great deal of concern that the California Attorney General was going to somehow limit the use of the newly minted housing and transportation bond money by insisting that any new projects funded by bond monies report how much greenhouse gas they would create. While the California Environmental Quality Act (CEQA) had not been held, as yet, to include global warming issues, there was concern that Attorney General Brown would use it this way. The Republican caucus made it a condition of their vote that a separate bill be adopted when the Assembly returned to session barring the Attorney General from using CEQA for these purposes.
Next......
On August 20, the Assembly came back into session.....in my next essay, the final budget agreement.
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