Governor’s “August Revise” Now in Bill Form
The Governor released the broad outlines of a Proposed Compromise Budget on August 20, 2008. This week SB 1072 (Committee on Budget and Fiscal Review) was amended to provide the details of that Proposed Compromise, which has been dubbed the Governor’s “August Revise.”
The Governor’s “August Revise” contains no surprises regarding community college funding. SB 1072 reflects a different total appropriation for Proposition 98—$41.8 billion—because the Governor’s proposed compromise, unlike the Conference Committee’s AB 1781, would not fund a cost-of-living adjustment (COLA).
Under SB 1072, the Governor’s Proposed Compromise, General Fund revenues appropriated for community college districts would be reduced from $4.39 billion to $42.7 billion. Apportionment funding would be less than under the Conference Committee’s AB 1781, again because there’d be no COLA. Finally, some categorical line items- such as that for the Extended Opportunity Programs and Services (EOPS)—within the Community College Budget section would be reduced because they too would not receive a COLA.
We’d felt some optimism when we learned that the Governor’s “August Revise” proposal had been put into bill form, and heard that the Assembly was expected to vote on the bill Wednesday, September 10, 2008. However, the Assembly leadership ended up canceling Wednesday’s Floor Session.
We’d once again felt optimistic when we heard rumors that the Senate would vote Friday, September 12, 2008 on a proposal that was similar to the Governor’s “August Revise,” and that it was expected to garner the necessary two Republican votes for passage. But the Senate Floor Session scheduled for Friday was also cancelled. As of this writing, no further Assembly or Senate Floor Sessions have been scheduled, and both houses remain on call. Whether Legislators are close or a mile apart depends on which Legislator of is opining on progress and timing.
Meanwhile, on Tuesday, State Controller John Chiang released his September 2008 Summary Analysis of General Fund Cash Receipts and Disbursements, which details California’s cash balance, receipts and disbursements for August 2008. The report reflected August receipts that were lower than expected, including retail sales that were down by $335 million, or 9.3%. However, the Controller indicated that the State had $9.6 billion remaining in unused “borrowable” resources—more than $5 billion above the amount estimated in the Governor’s May Budget Revision—and would have sufficient cash to make its payments through most of October. That may be a mixed blessing. Though Legislators seem to be feeling more heat as things like child care centers and dialysis clinics aren’t being funded, the better cash flow picture may take some of the pressure off for a quick end to the lengthy Budget impasse.
Stay tuned as the roller coaster ride continues amid discussion that this ride is in need of a major fix.
—Deborah Harmon