“Big Six” to Resume Budget Talks
The Sacramento Bee is reporting that the “Big Six” (the Governor, the legislative leadership, and Senate President pro Tem-elect Darrell Steinberg [D-Sacramento]) will be resuming talks on the Budget tomorrow, Wednesday, October 15, 2008, but they will be talking by phone. According to Schwarzenegger spokesman Aaron McLear, the group will be joined by State Treasurer Bill Lockyer and Department of Finance officials.
State leaders are working off of the Department of Finance’s $3 billion revenue shortfall estimate for the current 2008-09 fiscal year, a 12-month projection based on an $814 million dip in September tax revenues. As reported in the Update last week (see “‘Big 5’ Meets Regarding the Budget Gap” in the October 10, 2008, Fiscal Report, page 381), the Big 5 were hesitant to discuss that gap or how they would make up the difference, as they preferred to talk about the state’s other problem—securing a $7 billion bridge loan. The group needs to determine whether it’s going to call a special session now or wait until December or January to deal with the revenue problem.
—Robert Miyashiro and John Gray