The California Budget: Assembly Hearing This Morning—No Senate Hearings Scheduled—No Agreement From Leaders

The total amount of the deficit is the combination of the gap between what the State spends and takes in as revenue for the current budget year that began July 1, 2008 and ends June 30, 2009. The budget for that budget year was not approved by the Legislature and signed by the Governor until mid-September after a nearly three month stand-off. The cuts and revenue increases proposed by the Governor last week is meant to close this gap.

The total project budget deficit also includes the gap between what the State spends and takes in as revenue for the next budget year that begins July 1, 2008 and ends June 30, 2009. The Governor will propose additional cuts and other proposals in January that would address the shortfall covering this time period and beyond.

Governor Proposed Major Cuts and Revenue Increases for Current Year Budget

The Governor on November 6th, proposed major spending cuts and increases in revenues to close a growing budget shortfall of $11 billion. Proposed spending cuts include major reductions, to take effect this budget year, including permanent cuts to In-Home Supportive Services (IHSS), Medi-Cal, CalWORKS, Cash Assistance Program for Immigrants, Regional Centers, and education (Kindergarten through 12th grade). The Governor also proposed major increases in revenues, including a temporary three year increase to the State sales tax of 1.5%. See separate CDCAN Report for details.

The spending cuts proposed by the Governor have major impact on children and adults with disabilities, mental health needs, seniors, low income children and families across the State.

The Governor will propose on January 10 his proposed budget for the State budget year that begins July 1, 2008 and ends June 30, 2009, which will also include an updated estimate on what the budget gap is. That number will include how much the State has spent from July 1, 2008 through the end of November, in addition to how much money the State has taken in as revenues. The Governor and other state officials have warned that the combination of both numbers in January will almost certainly result in an even higher budget gap – and the need for even greater spending cuts and other proposals, for the 2008-2009 State budget.

NEXT STEPS

GOVERNOR

* Issued last week a proclamation ordering the current Legislature back to Sacramento for a special session to deal with the growing budget crisis – a crisis that the Governor called a budget “state of emergency”. While he can order the Legislature back to meet, he cannot force them to act, or to force them to meet beyond the date (November 6th)

* Proposed last week major cuts that would take effect if approved, in the current year State budget covering education, health and human services (focused on Medi-Cal, IHSS, CalWORKS, Cash Assistance Program for Immigrants, SSI/SSP and regional centers).

* Proposed last week major revenue increases that would cover about half of the current year

* Governor also created a commission to look at different ways the State can raise revenues, with a report and recommendations due to the Legislature and Governor by April 2009.

ASSEMBLY

* Floor Sessions: Last met briefly on November 6th, though took no action (they were required to meet at least for a few minutes in order to fulfill the Governor’s order to return to Sacramento for a special session). No floor sessions have been scheduled – and none likely until (and if) the Governor and Legislative leaders are able to come up with an agreement.

* Assembly Budget Committee Hearing Friday November 14 at 10 AM, State Capitol in Room 4202 (note time change from 1:30 PM). No agenda available yet – though will cover the Governor’s proposals – though not clear yet what the focus will be or to what extent there will be public testimony allowed (some brief testimony however is expected).

STATE SENATE

* Floor Sessions: Last met briefly on November 6th, though, like the Assembly, took no action. No additional floor sessions have been scheduled, and like the Assembly, none are likely until (and if) the Governor and Legislative Leaders are able to come up with an agreement.

* No Senate Budget Committee hearings scheduled yet at this time – not certain at this point if there will be any scheduled..

DEADLINES FOR THIS SPECIAL SESSION

Never before in California history has a Governor called a special session – officially called an “extraordinary session” – so late in the year, after a statewide general election. Calling a special session so late after the statewide general election means the current Legislature has limited time to act.

The current Legislature includes 100 members (all 80 Assemblymembers and 20 of the 40 State Senators) whose terms will expire at the end of the day on November 30, 2008.

Those members elected or re-elected on November 4th (all 80 Assemblymembers and 20 State Senators) will take office in December. The Governor can – and will likely do so - issue another proclamation that calls for a special session of the newly elected Legislature after they take office in December.

So the current Legislature faces several looming deadlines – and unlike the deadlines for the State budget in the State Constitution, these deadlines will likely have to be met:
November 23 – This is not a constitutional deadline, but a date that outgoing Senate President Pro Tem Don Perata previously said is the deadline for the current Legislature to act because the legislative computers will be overhauled beginning on that day to prepare for the new legislative session for 2008.

November 30 – This date is one that the current Legislature cannot ignore because the terms of office for 100 of the 120 members expire at the end of this day, as required by the State Constitution. Members elected or re-elected November 4th take office in December, as required by the State Constitution. So the special session called by the Governor for the current Legislature will have to end no later than this date (though, as mentioned, he can and will likely do so, call another special session in December or January for the new Legislature)

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 advoc ates to provide information on state (and eventually federal), local public policy issues.