June 4, 2004
| TO: | CLA Members/ Systems/ Network Contacts |
| FROM: | Mike Dillon, Lobbyist Christina Dillon, Lobbyist |
| RE: | NEWS FROM THE CAPITOL |
I. BUDGET CONFERENCE COMMITTEE BEGINS WORK
In previous years, the custom and practice of the legislature is to conclude work of the Budget Subcommittees in the various subject areas, such as education, health and human services, natural resources, etc. and then formally approve each of the subcommittee reports in their respective Senate and Assembly Budget committees. The framework of a Budget bill is then sent to each floor for ceremonial debate, and rejected. The action forces the start-up of the annual Budget Conference Committee deliberations - a powerful six member committee, consisting of three representatives of each house. This year, in a strange twist, the legislature bypassed the approval of the subcommittee reports and the traditional floor debate, and has decided to move straight to the Budget Conference Committee process.
Yesterday the Senate representatives on the Conference Committee were finally confirmed as: Senator Wes Chesbro (Chair of the Conference Committee, and Chair of Senate Budget Committee), Senator Ross Johnson (former Republican Minority Leader), and Senator Dede Alpert (Chair of the Senate Appropriations Committee, and author of CLA's library bond bill). In the Assembly, the conferees are: Assemblyman Darrell Steinberg (Chair of the Assembly Budget Committee), Assemblyman Rick Keene (Vice Chair of the Assembly Budget Committee), and Assemblywoman Judy Chu (Chair of the Assembly Appropriations Committee).
The Conference Committee is tasked with adopting or rejecting the Assembly version of the Budget, the Senate version of the Budget, or accepting a Department of Finance or Legislative Analyst's Office compromise instead. This year's Budget will be an interesting challenge, in that Governor Schwarzenegger has already cut several reported "deals" with various groups such as education and local government, and he continues to work with the tribal casinos, and others to find agreement. Whether the legislature will be willing to subscribe to these deals is unknown at this time. The Conference Committee began their work yesterday afternoon and will be meeting daily, to present a balanced Budget to the Governor, potentially by July 1. When the Conference Committee commenced yesterday, Chair Senator Chesbro noted that there were "substantial challenges in this year's Budget," and added that the Governor's May Revision "narrowed some, but not all differences" between the two houses and the two parties. Assemblyman Steinberg added, "We are here to work hard, and to get a balanced and fair Budget as soon as possible."
Several items are currently pending before the Conference Committee that pertain to our CLA members. Please take a moment today and write the members of the Conference Committee if you are interested in these issues:
1) PUBLIC LIBRARY FOUNDATION: Budget Item # 6120-221-0001
The Senate chose to adopt the May Revision, which reduced the PLF current
baseline of $15.8 million by $1.4 million. The Assembly rejected the May
Revision, and voted to protect the current PLF baseline.
ACTION: In your letter, please state that you are requesting the Budget Conference Committee adopt the ASSEMBLY VERSION of the Budget to maintain the PLF at $15.8 million.
2) ONE TIME FUNDS FOR SCHOOL LIBRARY MATERIALS: Budget Item # 6110, Issue 680
The Governor's May Revision provides for $95.1 million in one-time
Proposition 98 Reversion funds to LEA's for purchase of school or K-4 classroom
library materials. The Assembly Subcommittee reduced this amount by only
$500,000. The Senate reduced the amount, however, by $70.1 million to use the
savings elsewhere.
ACTION: In your letter, please state that you are requesting the Budget Conference Committee adopt the ASSEMBLY VERSION of the Budget to maintain school library materials at $95 million.
3) CALIFORNIA TELECONNECT FUND: Budget Item #8660-001-0493
There are three issues within the Public Utilities Commission Budget for the
Teleconnect. They are:
- Issue #100 - "The Assembly adopted trailer bill language (effective July 1, 2005) to limit CTF subsidies to qualified schools and libraries only to the remaining portion of the telecommunication bill after the federal E-rate subsidy is applied (regardless of whether the schools and libraries participate in the E-rate program.)"
The school lobbyists and CLA have been arguing that many schools and libraries do not wish to participate in the E-rate program for various reasons, including the complicated, time-consuming application process, and the federal requirement that libraries would need to filter their Internet terminals as a condition of receiving E-rate dollars. The Senate took no action in this area.
- Issue #101 - "The Assembly adopted trailer bill language (effective July 1, 2005) to apply the federal E-rate need-based sliding scale to CTF subsidies for schools." CLA objected to the "needs based" language, and the subcommittee chose to remove libraries from this proposal altogether. The Senate took no action in this area.
- Issue #201 - "Senate increased expenditure authority for the CTF program to cover projected program costs in the budget year using revenues from an increase in the CTF surcharge on telephone users." The Assembly took no action in this area.
ACTION: In your letter, please state that you are requesting the Budget Conference Committee approve the Senate action in Issue #201, Budget Item #8660-001-0493 and reject the Assembly language in Issue #100. If you are not currently participating in E-rate, please cite the reason for not applying (e.g. Internet filtering, complex geographical issues, etc.) in your letter.
II. LEGISLATIVE ANALYST'S OFFICE WEIGHS IN ON SO-CALLED LOCAL GOVERNMENT "DEAL"
Two weeks ago the Legislative Analyst's Office released a report entitled, "An Assessment: Governor's Local Government Proposal," which examines tenets of the so-called "deal" made between the cities, counties, and special districts, with the Governor and his Administration. The LAO report notes that while the proposal would "greatly increase the stability of local finance and increase accountability in the mandate process.We also find, however, that the proposal locks in place the current flawed state-local fiscal structure, imposes added fiscal stress on many local governments, and is not structured in a fashion that addresses long-term state fiscal goals." The LAO raises the following four points of concern regarding the proposal:
"1) existing local finance system locked in place, 2) rationale for complex tax swap not clear, 3) major local fiscal effort for short-term state relief, 4) mandate proposal shows promise, needs work." The major issue raised by the Analyst appears to be the provision that would lock in the local government protection, and simultaneously would "not provide any increase in local resident authority over local taxes," and notes the proposal would place "severe constraints on the ability of state and local governments and their residents to work together to improve the shared fiscal landscape." Over the last two weeks, several legislators have indicated similar concerns to those raised by the LAO's office, regarding locking in protection for local governments into the Constitution.
The Leave Our Community Assets Local (LOCAL) campaign is encouraging representatives from local government to ask their legislators to support the Governor's deal made with the cities, counties, and special districts. LOCAL has put together a series of documents, including talking points to use with your legislators, available online for your use. You can find talking points, sample letters, and other helpful information to assist in your lobbying efforts at www.calocal.org.
III. ASSEMBLYWOMAN HANCOCK INTRODUCES BILL TO CLEAN-UP UNWIELDY LAW PERTAINING TO VOLUNTEERS
In April, Sacramento Bee political reporter, Dan Weintraub wrote two excellent articles addressing a trend started during the Davis Administration, by the Department of Industrial Relations to "crack down" on groups who utilize volunteers for local projects, but refuse to pay them prevailing wage. So-called "prevailing wage," is a standard to prevent nonunion contractors from winning bids on public work projects. Weintraub cites a 1989 law which states that "volunteer work can only be used when the work is performed entirely by unpaid people, the work is on a project used primarily by unpaid people, the work is on a project used primarily by community organizations, the work will not have an 'adverse impact' on employment and the work has been approved by the Director of Industrial Relations as meeting all of the above requirements. In other words, a bureaucratic and political minefield."
Tim Smith, the Chair of the Rohnert Park - Cotati Library Advisory Board, contacted CLA and shared his concern that, under this law, his local rotary group would not be allowed to landscape the library's grounds, as had been planned. He also shared his story with Bee reporter, Weintraub, who highlighted Tim's issue in his second article entitled, "On Volunteers, State Is Up a Creek Without A Clue." The CLA Legislative Committee, Chaired by Anne Cain, agreed that the law is unwieldy and could jeopardize several well-intentioned community volunteer programs within libraries. To the rescue comes Assemblywoman Loni Hancock, who has amended her AB 2690 to stipulate that a volunteer or a volunteer coordinator does not have to be paid the prevailing wage. A "volunteer" is defined as "an individual who performs work for civic, charitable, or humanitarian reasons for a public agency or 501 (c)(3) tax-exempt organization without promise, expectation, or receipt of any compensation for work performed." A "volunteer coordinator" is defined as "an individual paid by a corporation or 501 (c)(3) tax-exempt organization to oversee or supervise volunteers." AB 2690 also includes a retroactive clause, making the bill apply to work concluded on or after January 1, 2002. CLA has taken a support measure on the bill, which passed the Assembly Floor last week and is now in the Senate awaiting assignment to committee.