May 22, 2003
| TO: | Cla Members/ Systems/ Network Contacts |
| FROM: | Mike Dillon, Lobbyist Christina Dillon, Lobbyist |
| RE: | News From The Capitol |
I. ASSEMBLY BUDGET SUBCOMMITTE VOTES TO RESTORE $15 MILLION TO PUBLIC LIBRARY FOUNDATION LAST NIGHT
Last night the Assembly Budget Subcommittee on Education Finance revisited the State Library budget issues, including the Public Library Foundation, for a final vote. The subcommittee first voted to adopt the Governor's May Revise proposal as it pertains to the Transaction Based Reimbursement (restore $12.1 million to the fund and reject the concept of shifting to a fee-based approach.) When the subcommittee took up the issue of the Public Library Foundation (PLF), Chairman Joe Simitian (D-Palo Alto) made a statement on behalf of the program: "I am pleased to see the recognition by the Governor of the importance of the TBR, which is an essential element in a statewide free library system. But I am disappointed that the money to fund it was drawn from the PLF. The PLF is a modest amount in the statewide picture, but very important to local libraries." Assemblyman Simitian closed by adding, "The PLF has given more than its share of cuts in recent years." He then asked for a motion to reject the Governor's May Revision proposal to cut an additional $14.7 million from the PLF, leaving only $1 million in the fund. Instead, Mr. Simitian proposed that the item be funded at the level of $15.8 million - the amount originally proposed in the Governor's January Budget. The motion passed, with three Democrat members voting in support, one Republican member voting no, and one Republican member abstaining.
However, this important Assembly vote to restore the PLF also needed to be followed by a subsequent vote this morning on an entire package of non-Proposition 98 restorations, which included the PLF, along with various higher education programs. When the package of cuts and restorations was presented this morning, the vote was close at 4-3, with both Republicans and one Democrat voting against the package.
II. WHAT'S NEXT
The Subcommittee is planning on wrapping up its final actions by Friday morning, and will forward their recommendations to the full Assembly Budget Committee next week for vote. Similarly, the Senate Budget Subcommittee, which voted to support a $15.8 million restoration to the PLF on Monday, will be concluding its work today or tomorrow. Once the full Budget committees vote on these issues, they will be incorporated into dueling Budget bills, sent to the floor for vote, rejected, and then forced into the annual Budget Conference Committee process. Throughout this process, we hope to be able to hold on to the $15. 8 million baseline for the PLF.
It is important to note that while there is strong legislative support for the PLF, the Governor's Department of Finance is opposed to any restoration of funding in the PLF. Thus, it will be critical to focus efforts now on the Governor, to encourage his support of maintaining the legislature's $15.8 million funding level for this important program. Please take a moment today to write the Governor and request that he sustain the PLF baseline at $15.8 million.
Sample address:
The Honorable Gray Davis
Governor, State of California
State Capitol
Sacramento, CA. 95814
III. LIBRARY BOND BILL AND ALL BONDS MAY BE STALLED DUE TO STATE DEFICIT
On Tuesday, State Treasurer Phil Angelides sent a two-page letter to legislative leaders and the authors of all of the bond bills, to express his "opposition to the enactment of any new general obligation or state lease revenue bond measures, beyond those already scheduled to be placed on the ballot, until a balanced budget for fiscal year 2003-04 is in place and there is a viable plan to fix the structural imbalances in the budget." The Treasurer adds, "This position is the only common sense response to the questions posed to this Office, given the gravity of the situation now before us." Treasurer Angelides states that he is a supporter of bond measures as they "represent smart and sound investments that will contribute to California's future economic prosperity," but cautions that the state is quickly approaching its bond threshold limits, and that without structural reform and a balanced budget, the state should not endure any further bonded indebtedness.
The Treasurer's letter closes: "When a balanced budget is adopted and when there is a credible structural reform plan, this Office will be able to offer an informed opinion regarding the additional amount of general obligation bonds that can be authorized. Once that amount is determined, we should place the highest priority on investments that will contribute most to the growth, vibrancy, and competitiveness of our State's economy. I am hopeful that there will be a timely resolution to the State's budgetary challenges so that we once again can focus our policy discussions on the best way to invest in our future."
Thus, Senator Dede Alpert, Chair of the powerful Senate Appropriations Committee and author of CLA's sponsored $2 billion library bond bill, made an announcement this week in her committee that she would, in fact, keep all bonds on the so-called Appropriations "suspense file," until the Budget negotiations were resolved. She noted that there were numerous bond measures pending, and that if all were enacted, they would require an additional $8 billion annually in debt repayment. It is important to note that there are already two major bonds (K-12 school construction and transportation) slated for the 2004 ballot, totaling more than $20 billion. We have also received a note from Assemblywoman Corbett's staff, indicating that they will be putting their plans for AB 222 (a $4 billion library construction bond) on hold, per the State Treasurer's letter. In the meantime, we will continue to lobby on behalf of both measures behind the scenes.