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California Budget Crisis Heats Up: Big 5 Meeting Scheduled for Tomorrow Afternoon—Senate and Assembly Meetings as Well

Schwarzenegger Says No Temporary Spending Bandaid and Budget Needs to be Passed to Protect Programs

Criticizes Republican Attempt at Two Month Appropriation

By Frank D. Russo

Without having a state budget in place, Republican Senators have of late been trying to move a bill appropriating money in the same vein as Congress passes continuous resolutions. Democrats are skeptical of this and have asked their Republican colleagues for a statement that they will not be cutting these programs that they profess an interest in funding when their alternative budget is introduced around the end of this week. They have been skeptical of the Republican’s professed new found interest in these programs. And there have been questions raised about the size of the Republican request and increasing frustration with their obstruction of the budget. The heat has been turned up on Republican Senators, including statements by Governor Schwarzenegger for them to “quit hiding” and accusing them of not wanting to reveal their budget cuts because they are “shocking”, to use the Governor’s language.

The Senate met at 4 p.m. today on the budget as part of Senator Perata’s announced schedule that they will meet every day until the Republican legislators come up with their plan. They then retired to caucus meetings, returned after 30 minutes, and adjourned. Senator Perata announced a "Big Five" meeting will be taking place tomorrow at 3 p.m.

Tomorrow morning at 11 a.m., the Assembly Democratic caucus is holding a press conference to discuss the Republican budget proposals.

Also tomorrow, the Assembly Budget Committee will hold an overview hearing on the new Republican budget proposals at 1:30 p.m. in Room 4202, the largest hearing room in the Capitol. Republican leaders have been invited to present their plan, and LAO and the Dept. of Finance also have been invited to testify. This replaces the Assembly session that had been scheduled on the budget.

Yesterday in an unusual Labor Day session of the Senate met at 4 p.m. to check in on the Republican progress in putting together an alternative budget—something they have not done despite the record time the state has been without one for the fiscal year started July 1, 2008. Senator Denham and the Republican leadership asked for a hearing on AB 207 which would allow for temporary expenditures. When they were rebuffed by the Democratic leadership, Republican Senator Denham moved to have a committee hearing, which failed on a 14 to 22 vote. Following this, Republican Senator Dutton then moved to remove the bill from the budget committee and to allow a floor vote without hearing. This was also defeated on a 14 to 22 vote.

Senator Ducheny, who chairs the Senate Budget Committee, said a similar bill was defeated earlier in the year, claimed this was theatrics, and pointedly said “The way for us to get to the bottom of this is to pass a budget.”

Mid-afternoon today, Senate President pro Tempore Don Perata (D-Oakland) today sent a letter to the Governor with a copy to other legislators pointing out that any such spending proposal must first be requested by the Governor under the California Constitution. The letter reads as follows:

“Dear Governor:

“Last week, the Senate met to consider a budget that was virtually identical to yours.

“You were unable to support that budget. The state now finds itself unable to pay bills for services such as regional centers, special education, and Medi-Cal providers.

“Only you have the constitutional authority to ask for legislation to appropriate funds for the Controller to pay our unpaid bills. Article IV, Section 12 © (4) states:

“Until the budget bill has been enacted, the Legislature shall not send to the Governor for consideration any bill appropriating funds for expenditure during the fiscal year for which the budget bill is to be enacted, except emergency bills recommended by the Governor or appropriations for the salaries and expenses for the Legislature.”

“The Senate has possession of a bill to appropriate funds for unpaid bills. Senate Democrats believe it is fiscally irresponsible not to have a budget when no less than three have been presented for Republican consideration and support, we are sensitive that services to our most vulnerable residents – those residents for whom we have been engaged in this protracted “budget battle” – suffer the most from the absence of a budget.

“Given our constitutional constraints, we will await your direction on this matter.

Sincerely,

Don Perata”

Within about an hour, the Governor has shot down the Republican Senators’ attempts to circumvent the normal budget process in a letter just released:

“It is irresponsible not to have a budget more than two months into the fiscal year and 80 days past the legislative deadline. California is now headed into unknown territory, but what we do know is that some state checks will not be cut and that state services will be impacted.

“We cannot afford a temporary fix. Legislators should not be devising band-aid solutions like continuing appropriations. What legislators should be focused on is passing a budget – the best way to ensure that state payments are made.

“This delay in the Legislature could cost California more than a billion dollars, because we are losing another month of budget solutions included in the compromise budget I proposed. Assembly Bill 207 would require the state to take out a short-term loan that would cost hundreds of millions of dollars – maybe more than a half-billion – and would dig our budget hole that much deeper and make our cash situation that much worse.

“The best way forward is to vote on and approve the compromise budget I proposed two weeks ago.”

Hopefully, the budget is being forged in this crucible. We will report tomorrow on what--if anything--gives.

Posted on September 02, 2008

Comments

We are hoping that something happens very, very soon. As contractors for the State we are losing ground fast. We also contract out to other facilities that have not been paid in some time. If an agreement is not come to then these providers of services will fold and so will we. By refusing to sign a budget it is going to cost the State many millions more due to legal actions and loss of providers of services. We have to pay our bills and we have to pay those that provide services for out clients. We do not mind paying more taxes if that is what it takes. But just refusing to vote on a budget just because you can is ruining peoples lives, so please do something. And I was very near voting republican in November, what was I thinking??

Posted by: James at September 2, 2008 08:17 PM

I just want to have the budget passed and signed. This is just 63 days passed the due date, and hopefully tomorrow they demos and repubs will come to an agreement on the budget.

Posted by: Erik Leon at September 2, 2008 08:17 PM

63 days later still no budget! Again republicans don't want to pass a budget, instead they want to try to buy more time, for what I'm not sure. One thing I know for sure is words like "obstruction","skeptical", and "shocking" are not words of encouragement to me. Please, just sign a budget! ANY BUDGET at this point. Again, this give me a whole new outlook towards Republicans and it's not good.

Posted by: Danny at September 3, 2008 08:54 AM

JUST PAST THE BUDGET. We are contract interpreters and we have been working because we feel a moral responsability towards justice but, what about you. Your behavior is shockingly inmoral. So far from us providers.

At least I go to sleep with a clean concious or maybe you do too because obviously repubs stink I hope come November we will have a government that looks more like us.

Posted by: Anna Arzu at September 3, 2008 12:15 PM

At least I go to sleep with a clean concious or maybe you do too because obviously repubs stink I hope come November we will have a government that looks more like us.

Posted by: Anna Arzu at September 3, 2008 12:17 PM

Simple solution to help facilitate budgets in the future.. As my company has not been paid in over a month now, but because of our fiscal responsibility we have a reserve to see us through another california debacle that is as sure as the sun comes up. I would love to have all funds cut to nothing for our respresnatives and their staff's and see how well they can manage. At least it would be a good exercise for them to practice some fiscal responsibilty that they obviously know nothing about. Such hypocrites they are. They can not do their job we pay for it and they do not have the guts and or the intelligence to make it through their own impass. I apologize for rambling for I forgot that common since has long been forgoten in california politics.

Posted by: Dana Furr at September 3, 2008 03:16 PM

Sorry, comments are temporarily disabled. We're doing a bit of server maintenance on the commenting area. We'll be back up and running shortly. Thank you for your patience.

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