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California Legislative Leaders Reach Budget Deal--Vote Could Come as Early as Monday

Budget Stand-off Could End This Week If Democratic and Republican Caucuses Support Their Leader's Budget Deal

By Marty D. Omoto
Director/Organizer
California Disability Community Action Network

Democratic and Republican legislative leaders said today (Sunday, September 14) that they have reached a budget agreement that will end the three month stand-off - the worst in California history. No details are officially available, and the deal still needs the approval of the Democratic and Republican caucuses (members) in both the Senate and Assembly, but it seems almost certain now that the budget stand-off will end within days now.

As we reported in Friday the deal contains no income tax or sales tax increases, but also no borrowing from other funds or from local government to bridge the $15.2 billion gap and contains over $9 billion in spending cuts.

A vote on the budget plan could come as early as Monday (September 15th) or Tuesday (September 16th)

Senate President Pro Tem Don Perata (Democrat - Oakland) had initiated the discussions with Senate Republican Leader Dave Cogdill (Republican - Fresno). Assembly Speaker Karen Bass (Democrat - Los Angeles) was informed of the Senate budget plan, with the four leaders - Perata, Cogdill, Bass and Assembly Republican Leader Mike Villines meeting this weekend to look at the details of the Senate plan, as hammered out by budget staff.

No Details on Budget Agreement Yet

There is no detailed plan available yet, though Assembly and Senate Democratic and Republican leaders have agreed to the following:

• Taxes - no income tax increases as proposed previously by Assembly and Senate Democrats, and no sales tax increases, proposed by the Governor.

• Borrowing - no borrowing from funds, as proposed earlier by Senate Republicans.

• New Revenues - the revised Senate budget plan relies on several one time measures, requiring a simple majority vote, to raise revenues, that could include higher tax amnesty, accelerated (earlier) withholding for high income earners and other measures similar measures to bridge the $15.2 billion gap, along with the cuts previously approved in June by the Budget Conference Committee, controlled by Democrats.

• Spending Cuts - Over $9 billion in cuts that include, in addition to the cuts previously approved by the Budget Conference Committee, spending cuts that were in the Governor's revised August budget compromise, as revised further by Senate.

Democrats, are likely to be part of the new revised Senate budget plan - though no details are available. The massive cuts proposed by Senate Republicans - previously rejected by Democrats in both houses when first proposed by the Governor in January and May, are not likely to be part of the revised Senate budget plan. However no details are available.

• Budget Reforms - a package of reforms proposed in January by the Governor, and again this month by Senate Republicans, the revised budget plan will not have any State constitutional spending caps - something strongly opposed by legislative Democrats.

The agreement does however contain some of the budget reforms that the Governor pushed for, including increasing the "rainy day" reserve fund. The agreement also gives the governor some limited authority regarding making mid-year budget reductions - though no details are available.

• Deficit Next Year - The budget deal will assume that the budget crisis will continue into next year - with the budget containing at least a $2 billion deficit.

Budget Actions to Date

09/09/08 - Assembly voted on the Senate Republican budget proposal, which, as expected, failed to pass 27 to 45. No Democrats supported the proposal.

09/08/09 - State Senate voted on the Senate Republican budget proposal, and as expected, rejected it 13 to 21. No Senate Democrats supported the proposal, and 2 Senate Republicans (Roy Asburn and Abel Maldonaldo) abstained.

09/03/09 - Assembly Budget Committee holds hearing on the Senate Republican budget proposal, with a focus on its impact on education funding. No vote was taken, though many people provided public comments in opposition to the proposed reductions and cuts to health and human services, including In-Home Supportive Services (IHSS).

08/29/08 - State Senate took up the Governor's budget proposal that he released August 20th, that was significantly revised by Senate Democrats. The Governor's proposal accepted the budget proposal as passed by the Budget Conference Committee, controlled by the Democrats in late June with some major changes. The Governor's plan had additional cuts and a proposed sales tax increase (instead of income tax increases) that would have been permanently reduced to a level lower than what it is today after three years. Senate Democrats revised the Governor's proposal by eliminating some of the cuts, going for the temporary sales tax increase, but eliminating the part of the proposal that would have permanently reduced it lower than what it is now after 3 years. No Senate Republicans voted for the proposal.

08/17/08 - The first time an actual budget plan was officially voted on in either house, 48 days late into the new budget year. The Assembly voted on the budget proposal that came out of the Budget Conference Committee controlled by the Democrats. That budget plan contained proposed tax increases and other new revenues. That budget plan fell 9 votes short of passage, and as expected, failed to pass. It received no Republican votes.

Impact of the Budget Delay On People With Disabilities, Mental Health Needs, Seniors

The issue of the impact of the budget delay on people with disabilities, seniors, people with mental health needs, children and others was the subject of a special CDCAN Townhall Telemeeting that was held Monday, September 8th, drawing over 650 people across the State. Many were deeply concerned and worried about the continued stand-off and the potential or actual loss of services and supports. A audio recording of the entire townhall will be posted on the CDCAN website at www.cdcan.us

State officials with the California Health and Human Services Agency, including the Department of Developmental Services, which oversees the 21 non-profit regional centers and 7 state operated and owned health facilities, including 5 developmental centers, have been working to monitor and work to allocate any available funding that can be made available.

The California Disability Community Action Network, is a non-partisan link to thousands of Californians with developmental and other disabilities, people with traumatic brain injuries, the Blind, the Deaf, their families, community organizations and providers, direct care, homecare and other workers, and other advocates to provide information on state (and eventually federal), local public policy issues.

Posted on September 14, 2008

Comments

Being that the final budget contains this "accelerated (earlier) withholding for high income earners and other measures similar measures to bridge the $15.2 billion gap" I urge the governor to veto this bill until such time that legislator pass the budget without taking our money early or more of our money.

Posted by: Republican at September 14, 2008 08:02 PM

I am glad that Governor said he will veto this budget as i personally don't like it.

Posted by: Republican at September 15, 2008 07:30 PM

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