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July 1, 2009
LEGISLATURE MISSES IMPORTANT BUDGET DEADLINE - CAUSES BUDGET PROBLEM TO SWELL TO $26.3 BILLION
At approximately 8 p.m. last night (June 30), the Senate took up a series of three so-called "stop gap Budget measures" and the rest of the Budget package, in an attempt to meet the midnight deadline for passage of a Budget by the end of the state's fiscal year. Senate President pro Tempore Darrell Steinberg noted that inaction at the close of this fiscal year would result in the loss of an additional $3 billion in savings that could be scored against Proposition 98 (K-14 schools), and would cause an immediate obligation to schools in the new fiscal year of $5.6 billion. For the past several days, the Governor has said he would veto any "partial solution" Budget bills, as he wanted to see the entire $24 billion deficit addressed in a comprehensive Budget solution. Senate Republicans also have remained steadfast in their opposition to a partial solution, frustrating Senate Democrats who were trying to avoid a situation wherein the State Controller would be forced to issue IOUs. Said President pro Tem Steinberg last night, "This is craziness. There is no excuse for it, to hold the state hostage."
After a lengthy late-night caucus, just before midnight Senator Steinberg then called for the vote on three key Budget bills and could not gain the necessary two-thirds vote required for passage. At a press conference held shortly after midnight, visibly troubled, the Senate President pro Tem stated, "It is the most irresponsible act I have seen in my 15 years in office. The Governor was apparently out to prove a point and he proved his point. I know for me and my Democratic colleagues, we did everything we could to avert this crisis. In the end, the Governor wanted things his way."
Meanwhile, across the hall, the Assembly adjourned for the night some time around 10 p.m. Both houses have been in caucus today in an attempt to forge a compromise. The State Controller has announced that he will begin issuing IOUs on July 2.
In other breaking news, the Governor held a press conference at 11:30 today to address the Budget stalemate. He tersely stated, "Four weeks ago, I warned that swift action was necessary...The sad story is the legislature refused to deal with the $24 billion problem." He added that he has issued an Executive Order to require a 3rd furlough day for state employees, he is invoking his Proposition 58 authority to call the legislature back into emergency special session to deal with the Budget, and he is vowing to veto any bill that is sent to his desk that does not pertain to the Budget or is not an "urgency" measure. Lastly, the Governor noted that the legislature's failure to act last night has created an additional $2 billion whole in the Budget deficit, moving the number to $26.3 billion.
CLA members should be advised that the Governor has put back on the table the concept of borrowing from local governments under Proposition 1A, and the Senate leader said that he would have a dialogue with the Governor about the issue. It is important to note that the longer the Budget impasse continues, the greater the risk of the Governor and the legislature borrowing property taxes from cities, counties, and special districts.
Submitted by Michael Dillon and Christina DiCaro, CLA Lobbyists
Posted by claadmin at 3:32 PM
June 22, 2009
Vote Now in CLA's Special Election
CLA is holding a special election for Vice-President/President-Elect. Voting begins today (6/22) and will end at 5:00 pm on July 13, 2009.
In order to vote online, visit http://rsmart.ca/VoteCLA, and log in with your CLA Member ID and Password.
Once you log in, you will be able to vote. Links to the candidate biographies are provided on the ballot, but if you'd like to look at them in advance, their information is available on our website. If you wish to vote by paper ballot, please contact the CLA office no later than July 2.
Join us in thanking the CLA Nominations Committee, chaired by Monique le Conge, Immediate Past President, for all their hard work. Thank you also to the candidates, Kim Bui-Burton and Julie Farnsworth, for their willingness to step forward and be considered for this important leadership position in CLA.
Please exercise your membership privilege, and VOTE in this election! With the resignation of our former President-elect, this election is so very important to the progression of CLA leadership. Your participation in this effort will help shape the direction of CLA during the next year.
Thank you for taking time to cast your vote in this special election. Our regular annual election will be held in September.
Posted by claadmin at 2:09 PM
June 18, 2009
Executive Committee Meeting Highlights
June 12, 2009
The CLA Executive Committee (EC) conducts a minimum of four meetings per year and one leadership-training meeting. EC Highlights are provided for informational purposes only and should not be considered official actions of the EC. Approved EC minutes can be obtained by requesting a copy from Richard Berta at rberta@cla-net.org. The EC highlights are produced within one week of each meeting and are made available to help keep our members and the public informed of EC actions and policy discussions.
The following summarizes the meeting:
President's Report
CLA President Barbara Roberts reported that Cindy Mediavilla accepted the permanent editorship of the Clarion. In keeping with the CLA theme of "going green," CLA will, in the future, be offering an electronic version of the magazine to members and limited paper copies. The next issue will be dedicated to the "New CLA."
She also reported on her involvement in the ALA National Legislative Day, noting that California had over 40 members attending. Meetings, stressing continuation of LSTA funding, were held with the staff of Senators Boxer and Feinstein as well as each person's Representative.
She advised members that over the past month, CLA and the CLA lobbyists were working to insure that we had a representative appointed to the California ICT Digital Literacy Leadership Council and ICT Literacy Advisory Committee. She reported that the Governor’s office has added CLA representation to both bodies. A letter recommending Stephanie Sterling Brasley, Manager of Information Literacy Initiatives, CSU Office of the Chancellor, was forwarded to Joe Camicia, the Chief of Staff to the Chief Information Officer, who will be handling the processing of appointment requests.
Consent Agenda
The EC approved Minutes for meetings and/or mail ballots of April 14, May 5 and May 22nd and the Treasurers report for the first quarter and through May 2009.
Action Items
Nominations for VP/President Elect: In the absence of the Immediate Past President Monique le Conge, Barbara Roberts reported that the Nominations Committee has selected two candidates to run for the 2009 VP/President elect: Kim Bui-Burton, Monterey Public Library and Julie Farnsworth, Pleasanton Public Library. The election will run from approximately June 22 to July 13, 2009. Barbara Roberts advised that she will spend time with the VP/President Elect to help orient her to the position. No action was necessary.
Resolution for Judith Krug: The EC approved a resolution recognizing Judith Krug for her contribution to the library community. The resolution will be forwarded by Les Kong to ALA for inclusion in a national recognition of her contributions.
Association Management Company RFP proposal: The committee discussed and approved the RFP to obtain an Association Management Company to manage CLA operations, noting that it was complete in content, direction and timeline. They gave further direction to the Interim Executive Director on suggested outreach, including the search for nationally certified California Association Management firms. The Interim Executive Director advised the committee that she would provide electronic copies of the document and attachments to interested parties and have them distributed starting Monday June 15, 2009.
Program Updates and Reports
Cindy Mediavilla, Chair of the Conference committee provided a report by telephone. She advised that the committee is adhering to their timeline, highlighted the things that will make this a greener conference and the strategies for obtaining sponsorships.
The committee discussed the recommendations of the ROI Task Force and agreed that the report should be provided to the new ED with direction to meet with the State Librarian to determine if there is value in developing this further as part of the library statistical measurements. The Interim Executive Director will include this report in the Executive Director briefing binder with a notation to report his/her findings to the EC.
Les Kong gave a brief ALA update and agreed to complete and return the ALA Assessment Survey completed by the President and Interim Executive Director and include his Chapter/Councilor input. He will also forward the Resolution on Judith Krug to ALA.
Executive Director Interviews
The EC continued their interviews of potential Executive Director Candidates.
Final Announcements
Executive Director Search: The committee announced that it has placed the search for an Executive Director on hold until CLA has successfully contracted with an Association Management Company.
E-newsletter update: Richard Berta, Membership and Marketing Associate provided a report on the status of the development of a monthly E-Newsletter. He presented the EC with an issue memo that identified the work completed to date in evaluating numerous software companies and obtaining satisfaction information from three associations. Based on his review, he recommended that CLA use MailChimp. With the consensus of the EC, he will continue development over the next month with a planned launch date of mid July 2009.
The next Executive Committee Meeting Date is set for October 30, 2009, Pasadena. This will be the last meeting of the Executive Committee. At the conclusion of the 2009 Conference, the new CLA Board of Directors will become operational.
Posted by claadmin at 3:37 PM
June 16, 2009
Call for Proposals
The California Library Association is looking for an Association Management Company (accreditation preferred) to manage all CLA programs.
CLA plays a major role in the state in providing representation in the Capitol to protect library funding and critical programs. In addition, CLA provides extensive leadership opportunities, educational workshops, communication network, products and services as well as professional development through its annual conference, its midyear local Spring Fling education programs, and through its interest groups.
CLA's vision is to capitalize on its current position in the state, and provide more extensive education, services and products to the library community to ensure that libraries continue to be the lifeblood within the community. By aligning itself with a fully staffed company, CLA will be in a position to use cutting edge technology to deliver its products and services.
Transition is planned for late fall or early winter.
For information and a copy of the "Request for Proposal" with accompanying documentation, please contact:
Claudia Foutz, Interim Executive Director at cfoutz@cla-net.org.
All applications must be submitted electronically by July 13, 2009.
Posted by claadmin at 4:55 PM
BUDGET CONFERENCE COMMITTEE REJECTS GOVERNOR'S LOCAL GOVERNMENT BORROWING PROPOSAL
Today marks the annual state constitutional deadline for the legislature to deliver to the Governor a balanced Budget. While the 10 member Budget Conference Committee is working expeditiously to complete their work, they are clearly not going to meet today's somewhat arbitrary June 15th deadline, despite the requirement in law. Shortly after 2 p.m. today, the Budget Conference Committee began working through a detailed book of approximately 150 "open items" that currently remained unresolved. As you are aware, one of the items that the Conferees are considering is a proposal by Governor Schwarzenegger, in his May Revision of the Budget, to borrow $2 billion in property taxes from cities, counties and special districts. CLA and other local government groups have been actively working to oppose the Governor's proposal.
This afternoon, when the Budget Conferees brought forward the Governor's property tax borrowing proposal for a vote, Conference Committee Chair Noreen Evans said, "The recommendation is to reject the Governor's proposal to suspend Proposition 1A." There was no debate on the motion and it subsequently passed. It is presumed that in lieu of the borrowing proposal, the $2 billion would be backfilled by a new proposal expected to be released today by Assembly Democrats to tax cigarettes and oil extraction, and possibly close corporate or business tax loopholes. The money generated from these taxes would likely also be used to backfill sizeable cuts in health and human services. While some legislators had been pushing to use $4.5 billion that the Governor had proposed to set aside for a General Fund reserve to balance the Budget, Chairwoman Evans told the Sacramento Bee, "We need the reserve in order to both borrow money and to make sure that we can respond to any new drop!
s in revenue as we go through the year."
While this news regarding the rejection of the property tax borrowing proposal is positive for the time being, it is important to note that the Sacramento Bee is reporting newly elected Assembly Republican Leader Sam Blakeslee is "willing to 'leave on the table for now,' despite his personal reservations, two proposals by Schwarzenegger that would accelerate collection of some taxes into the coming fiscal year and borrow $2 billion from cities and counties that would have to be repaid in three years." The Conference Committee adjourned a few minutes ago and is scheduled to meet again tomorrow upon "call of the Chair." We will keep you informed as more information unfolds.
Submitted by Michael Dillon & Christina DiCaro, CLA Lobbyists
Posted by claadmin at 8:20 AM
June 11, 2009
Budget Conference Committee Continues to Meet Daily - Legislative Leaders Debate Best Approach
Senate Democrat Leader Does Not Support Governor's $2 Billion Borrowing Proposal
The powerful Budget Conference Committee, consisting of 10 members (5 from the Senate and 5 from the Assembly) has been meeting daily, wrestling with how to close the massive $24 billion budget deficit. At this point in time, there are no direct cuts proposed to the library programs under the State Library, such as the Public Library Foundation, Transaction Based Reimbursement, or adult literacy, etc. As you have been hearing in the media, time is of the essence for the Legislature to act so that the state does not run out of cash at the end of July. We have learned that several of the urban legislators in the Assembly Democrat caucus are very concerned with the large cuts proposed to CalWORKs, In-Home Health services, mental health programs, battered women's shelters, etc. and they are not supportive of authorizing the Conference Committee members in the Assembly to make deep cuts. The Sacramento Bee is reporting today that Assembly Speaker Karen Bass "said Wednesday that her caucus is deciding among numerous revenue-raising options because the $24.3 billion shortfall is too large to bridge without an infusion." Meanwhile, the Senate Conferees have authorized sizeable cuts in sensitive programs - albeit very unwillingly, but all the while recognizing the General Fund cash flow crisis. This perceived divide in the Conference Committee has led to rumors that there is growing dissention between the Assembly and the Senate Democrats.
Also, in the last 48 hours, Senate President pro Tem Darrell Steinberg indicated that he does not support the Governor's proposal to borrow $2 billion in property taxes from local government. CLA and the other local government organizations have been actively lobbying against the Governor's property tax borrowing proposal. When the Mayors of several cities, including Los Angeles, Sacramento and Fresno, met with Governor Schwarzenegger this week on the issue, the Governor continued to embrace his $2 billion borrowing proposal. For the last several days, the Conference Committee has been addressing the severe cuts proposed by Governor Schwarzenegger in his May Revision as they pertain to health and human services, corrections, and resources. They were scheduled to address local government issues yesterday, but time ran short and the discussion was deferred until late this afternoon, or tomorrow (Friday). The Conference Committee is not scheduled to meet over the weekend. However, Committee Chair Noreen Evans said she is optimistic the Conference Committee will wrap up its deliberations late Monday. Based on our observations thus far, we anticipate that Democrats will vote for the Conference Report and Republicans will oppose it. What happens next is anyone’s guess.
STATE CONTROLLER WARNS: "WE ARE LESS THAN 50 DAYS AWAY FROM A MELTDOWN OF STATE GOVERNMENT"
In late May, the State Controller, John Chiang, sent a letter to legislative leaders and the Governor, warning that the state would run out of cash at the end of the fiscal year (June 30). The Controller stated, "Our latest projections show that beginning on July 29, California will not have the cash needed to meet all of its payment obligations. On that date, the state will be in the red by $317.1 million; two days later, on July 31, our cash deficit increases to a negative $1.02 billion." To meet immediate cash flow needs, the Controller stated before the Budget Conference Committee two weeks ago, "As a precautionary measure, I am preparing to sell Revenue Anticipation Warrants (RAWs) to address part of the cash shortage." The Controller added, "Without credible budget and cash flow solutions in place, the rating agencies and potential investors who will be evaluating the credit risk of these securities will be highly skeptical about investing in California." Also of interest were his comments, "that the state has not had a positive cash balance since July 12, 2007."
Yesterday the State Controller indicated that when the state closed its books for the month of May, revenues were down an additional $827 million from the Governor's May Revision estimate. All areas of tax receipts lagged for the month of May - personal income tax, sales taxes, and corporate taxes, with personal income tax declining the most, by $475 million or 23 percent below estimates.
Controller Chiang goes on to warn, "Without immediate solutions from the Governor and the Legislature, we are less than 50 days away from a meltdown of state government. A truly balanced budget is the only responsible way out of the worst cash crisis since the Great Depression."
We have heard that at least one house of the legislature is potentially planning to force a Budget vote by June 15, while some legislative insiders say that June 30th is more realistic. We will continue to keep you posted as details emerge.
Submitted by Michael Dillon & Christina DiCaro, CLA Lobbyists
Posted by claadmin at 4:18 PM