8-10-07 Six Weeks and Counting--A Budget Update

Volume 20 For Publication Date: August 17, 2007 No. 18

Six Weeks and Counting—A Budget Update

Completing its sixth week without a Budget, California is nowhere closer to finalizing the 2007-08 fiscal plan. As it stands, the 2007-08 Budget, in the form of SB 77 and SB 78, has been approved by the Assembly. The Senate, however, is one vote short at 26 aye votes (including lone Republican Abel Maldonado (Santa Maria).

While legislators are communicating, the words are not ones that speak of negotiation, but instead spell a demise of the post-partisanship dialogue that began with the Governor’s State-of-the-State address back in January.

The primary method of communication this week appears to be through press conferences in various locales with participation by groups affected by the Budget impasse.

State Superintendent of Public Instruction Jack O’Connell has been traveling across the state calling for an end to the stalemate, highlighting the impact of the Budget impasse on children and child care. Democrat legislators are also holding various press conferences within their districts to push Senate Republicans to sign off on the deal that the Assembly approved three weeks ago.

At a Capitol press conference earlier in the week, Senate President pro Tem Don Perata (D-Oakland), along with his colleague Darrell Steinberg (D-Sacramento) assailed the 14 Republican holdouts for their refusal to vote for a Budget. Along with Bill Magavern of the Sierra Club, Perata spoke scathingly of the Republicans desire to gut the California Environmental Quality Act (CEQA) and said he would not bargain away California's environment.

But the Senate Republicans held their own press availability shortly thereafter, condemning Senate Democrats for mischaracterizing the intent of their proposal, which they argue would limit the Attorney General’s ability to sue local governments for failure to consider greenhouse gas emissions as local governments strive to build new homes and roads.

Recall and hardball politics have also come into play this week as pressure continues to be placed on Senator Jeff Denham, a perceived moderate Republican from Merced, to vote for the Budget. A recall campaign began in the prior week targeting Senator Denham for his failure to approve a Budget. The state democratic party has also weighed in, contributing thousands of dollars for signs to “Dump Denham.”

Additionally, Senator Perata has removed Denham from a choice committee assignment, vice-chair of the Governmental Organizations committee, a committee that oversees gambling, alcohol, and other government-regulated activities. Arguably, the recall effort and his removal from the committee are attempts to push Denham to support the $103 billion spending plan.

Arguably the biggest event of the week, however, was a letter sent by Speaker of the Assembly Fabian Núñez to Senate Minority Leader Dick Ackerman (R-Tustin) indicating that the Assembly will not reconvene until August 20. Speaker Núñez also established several conditions for any new Budget if negotiations were to be reopened:

· Restoration of the July 1, 2007, cost-of-living adjustment (COLA) for those receiving SSI/SSP. The Assembly approved a plan that would delay implementation of this COLA for five months.

· Restoration of public transportation dollars that were diverted to the state’s General Fund. The Assembly plan shifts $1.3 billion in public transportation dollars to cover expenditures from the General Fund.

· No additional cuts to education or health and human services safety nets.

If the Budget were to be approved today, it would be the 5^th latest Budget in 20 years. Unfortunately, there doesn’t seem to be an end in sight.

[Posted to the Internet 8/10/07] —Dave Heckler