July 21, 2004
| TO: | CLA Members/ Systems/ Network Contacts |
| FROM: | Mike Dillon, Lobbyist Christina Dillon, Lobbyist |
| RE: | NEWS FROM THE CAPITOL |
I. SENATE DEMOCRATS FORCE VOTE ON BUDGET BILL - REPUBLICANS CALL MOVE A "POLITICAL DRILL"
Three major issues continue to hold up agreement on a state Budget,
including: 1) the local government deal reached between the Governor and cities, counties, and special districts versus a new, competing Democratic proposal - SCA 9-Torlakson, which is not supported by the Governor, local governments, nor Assembly or Senate Republicans, 2) proposed repeal of the so-called "Sue Your Boss" law which allows employees to sue employers for labor violations, and 3) the repeal of a law that currently bans schools from contracting out with private companies for the provision of services, such as school bus drivers. Despite some small movement on the third issue late yesterday afternoon, the Republicans contend that no "deal" has been reached on the overall Budget package, and cried foul when Senate Democrats tried to force a vote on the Budget bill today on the Floor.
Stating that the "time is now" to vote on a state Budget, Senator Wes Chesbro, the Chair of the Budget Conference Committee, brought forward the 2004 Budget bill on the Senate Floor this morning. Senator Chesbro said that the document before the body was "based on our understanding of
agreements between legislative leaders and the Governor." However, former
Republican Leader Senator Jim Brulte stated, "I just checked with the Governor's office, and [this Budget] doesn't reflect agreements made with the Governor's office. This is a political drill, this is about political posturing - and it needs to stop." Current Republican Leader, Senator Dick Ackerman went a step further, quoting a press release that had been sent down to the Floor from Department of Finance Director, Donna Arduin, which
read: "It has been represented that the conference committee report being debated on the floor of the Senate today reflects agreements that the legislative leadership have purportedly reached with the Governor on a number of fiscal issues. I wish to make it clear that there has been no comprehensive agreement between the Governor and the leaders. Absent such an agreement, the Governor made it clear last week that the budget plan he supports is the May Revision that he sent to the Legislature 10 weeks ago."
Senate Democrat, Sheila Kuehl countered, "This is not a drill. This is a serious Budget and reflects about 98 percent of the Governor's May Revise. By not bringing this to the Floor earlier, I believe, was out of respect to our new Governor.it gave him time to negotiate." Senator Dede Alpert, one of the Budget Conference Committee members, teased that she would "rather be in my district, having lunch with the Governor at the Cheesecake Factory," in reference to his appearance today at the San Diego eatery to encourage support for his Budget. She added, "The Governor was willing to compromise on a number of issues that made a huge difference to Democrats, such as higher education. This Budget is not a drill - it has the basic tacit agreement of all the parties." Senate President pro Tem John Burton questioned why the "side issues," such as the private contracting for schools issue and the "Sue Your Boss" law were even part of the Budget discussions as they only surfaced recently. With regard to the Governor's local government proposal he offered, "A deal was cut with local government and the Governor. No one in this legislature was there. We didn't know about it until it showed up in the paper..You could say, Republicans, this is a drill.We considered it a Budget that, by and large, reflects the agreements made with the Governor."
The Budget bill only received 24 of the necessary 27 votes for passage. The bill is currently "on call" and is not expected to pass when the call is lifted later today. As this report goes to print, the two parties are in caucus in the Senate. Meanwhile, over in the Assembly, that house remains on "call of the chair," with very few Assemblymembers even in town.
II. SCA 9 - NEW LOCAL GOVERNMENT FINANCE PROPOSAL: CITIES, COUNTIES, AND SPECIAL DISTRICTS OPPOSED
On Monday, July 12th Senator Don Perata was the author of Senate Constitutional Amendment 9 (SCA 9), relating to appropriations limits in the case of natural disasters. On Tuesday, July 13, SCA 9 was completely gutted and amended to become the new Senate Democratic local government finance plan, and is authored by Senator Tom Torlakson. Last week, the newly amended SCA 9 was heard in the Senate Constitutional Amendments Committee where it passed on a vote of 3 "ayes" to 2 "noes," - Democrats "yes" and Republicans "no." This Monday, it passed the Senate Appropriations Committee again on a partisan vote. Representatives from the cities, counties, special districts, and redevelopment agencies, all testified in opposition to the bill. SCA 9 can be viewed as the Democratic alternative to the "Governor's/Local Government plan" developed over the past several months.
The main differences between SCA 9 and the Governor's plan, is as follows:
- Property taxes are protected in the "aggregate," i.e. the total amount of property tax revenues that are collected county-wide and allocated among all agencies, rather than protected separately for each agency.
- The legislature can suspend the property tax protection for one year if the Governor issues a proclamation that declares that, due to a "severe state fiscal hardship" the suspension is necessary.
- The legislature enacts an urgency statute by two-thirds of each house concurring with the Governor's suspension.
- Any funds borrowed must be repaid to local government, with interest, within three years. No more than two suspensions could be allowed within ten years. There is no cap on the amount that can be borrowed under this plan, although a cap is being discussed.
- During the ten-year period, a second suspension cannot occur until all of the property taxes have been paid back from the first suspension.
Other provisions of SCA 9 relate to sales tax, vehicle license fees, and state mandates. The bill also contains a provision that states that if Proposition 65 (the LOCAL Initiative) and SCA 9 are both approved by the voters in November, and if SCA 9 receives the higher vote, its provisions override all of the provisions in Proposition 65.
SCA 9 is currently on the Senate Floor awaiting action.