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California Budget Crisis: Sunday Floor Sessions Cancelled--Both Houses to Meet Tuesday

• Governor & Legislative Leaders Continue Meetings – But No Agreement On How To Bridge Huge Budget Shortfall

• Major Changes At Dept of Health Care Services

• Shewry & Rosenstein Retiring At End of December

marty_omoto_june2004.gifBy Marty D. Omoto
Director/Organizer
California Disability Community Action Network

The State Senate and the Assembly have scheduled floor sessions for Tuesday, November 25th, to deal with the State budget crisis, though no agreement or deal has been reached and this point – no action seems likely. Floor sessions previously scheduled for Sunday (November 23) have been cancelled. The Assembly is scheduled to meet at 12 noon on Tuesday and the time for the State Senate will be announced later today.

Meanwhile, the Governor announced today major changes at the Department of Health Care Services which oversees the state’s Medi-Cal program. Department Director Sandra Shewry and Chief Deputy Director Stan Rosenstein will both be leaving state service at the end of December. The Governor announced that David Maxwell-Jolly will replace Shewry – who is leaving to form a non-profit, and Deputy Director Toby Douglas will replace Rosenstein, who wanted to retire over a year ago.

The Governor and the Legislature are struggling to come up with an agreement that would bridge a growing deficit in the State’s current budget year (which began July 1, 2008 and ends June 30, 2009) now projected at over $11 billion. If no action is taken either to raise revenues or cut spending or a combination of both, state budget officials have projected that the deficit will swell to over $28 billion by June 30, 2010 – which is the end of the 2009-2010 State budget year.

Any action – or lack of action – has major impact on hundreds of thousands of children and adults with disabilities, mental health needs, seniors, low income families, community providers, organizations and workers who provide supports and services across the State.

The last time both houses met in a floor session, and then just briefly, taking no action, was November 6th, after the Governor issued his proclamation calling them back into a special or extraordinary session to deal with the growing budget crisis. Nearly every state is facing major budget shortfalls.

Governor and Legislative Leaders Continue Meetings

The Governor, and the five Legislative leaders (Assembly Speaker Karen Bass, outgoing Senate President Pro Tem Don Perata, who will be forced out of the Legislature after November 30 due to term limits, incoming Senate President Pro tem Darrell Steinberg, Senate Republican Leader Dave Cogdill and Assembly Republican Leader Mike Villines) continue to hold meetings to try to come up with some agreement.

Republican legislative leaders have said they oppose raising any new taxes during a bad economy and that controlling spending is the way to deal with the budget crisis. The Governor and Democratic legislative leaders have called for raising new revenues and some level of major spending cuts – though the Governor and Democrats differ on how to raise those revenues and also the level and specifics of the proposed spending reductions.

Assembly Speaker Bass recently pushed for no spending reductions and bridging the deficit with raising new revenues, including taxes and new money from the federal government, though Sen. Steinberg said that any solution will need a mixture of new federal money, new revenues and additional spending cuts. Republican legislative leaders and the Governor will likely oppose any new revenue ideas without new additional permanent spending reductions.

Crisis Has Major Impact on People With Disabilities, Mental Health Needs, Seniors

With major new proposed cuts centered on education and health and human services, the crisis has major impact on children and adults with disabilities, including those with developmental disabilities (including autism spectrum disorders), people with mental health needs, seniors, low income families and children – many with special needs. The crisis also impacts thousands of legal immigrants who are blind, have disabilities or are low income seniors who don’t qualify for SSI (Supplemental Security Income).

The Governor, in responding to the budget crisis, proposed on November 6th, major permanent and immediate reductions to Medi-Cal including permanent elimination of many benefits not required by the federal government (called “optional benefits”), In-Home Supportive Services (IHSS), SSI/SSP (Supplemental Security Income/State Supplemental Payment), CalWORKS, CAPI (Cash Assistance Program for Immigrants),, regional centers and education (Kindergarten through 12th grade) and also major proposals calling for revenue increases, including a temporary 3 year sales tax increase.

Deadline Fast Approaching

With the Thanksgiving holiday weekend fast approaching, barring any surprise agreement by the Governor and the Legislative leaders, the Tuesday floor session appears to be the last opportunity for the current Legislature to meet and possibly take action before terms expire.

The absolute deadline for action by the current Legislature is November 30th – when terms of office of all 80 Assemblymembers and 20 of the 40 State Senators expire at the end of the day – and members elected and re-elected on November 4th take office December 1st. The Governor could – and will likely do so – issue a new proclamation calling the new Legislature back into a special session on the budget crisis.

Republican Votes Needed To Pass Any Budget Solution

One reason the Governor called the current Legislature back into special session was the hope – which appears to be fading fast – of gaining support from enough Republicans termed out of office, for his budget proposals.

Currently the 80 member Assembly has 48 Democrats and 32 Republicans. It takes 54 votes to pass any urgency or emergency bill (which takes effect immediately), any bill to raise taxes and the budget. So assuming all 48 Assembly Democrats vote together on a budget solution – which is a big if considering that outgoing Assemblymember Nicole Parra refused to support the budget in August and September, Democrats would need 6 – maybe even 7 (if Parra abstains) votes.

Parra was punished by Assembly Speaker Bass for abstaining on the budget, removing her office from the Capitol to the Legislative Office Building across the street. In October Parra countered by endorsing a Republican to take her seat – and the Republican appears to have narrowly won.

If current election results hold out, the new Assembly, which takes office December 1, will have 50 Democrats and 30 Republicans – meaning Democrats would still need 4 Republicans to cross over.

And in the 40 member State Senate, Democrats currently hold 25 seats with Republicans holding 15. It takes 27 votes to pass a budget, raise taxes or pass an urgency bill. Currently Democrats would need at least 2 Republican votes.

If current election results hold out, the new State Senate – with new and re-elected members taking office December 1, will have the same numbers as before – 25 Democrats and 15 Republicans.

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 November 21, 2008

Comments

Of course the legislature hasn't come to any agrement on the budget. Many of it's members are on vacation or at other events. Speaker Karen Bass is at a mental health conference in DC...

How about a list of legislators who are here in SAC and not here/doing what else so we can rate them accordingly.

So, I guess the budget IS NOT such a big deal after all if it isn't worth the time of the folks we elected to manage it when it is in disarray...

Posted by: Jay Gould at November 21, 2008 06:51 PM

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