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News from the Capitol
TO: CLA Members/ Systems/ Network Contacts
FROM: Mike Dillon, CLA Lobbyist; Christina Dillon, CLA Lobbyist
RE: News From the Capitol
GOVERNOR RELEASES "MAY REVISION" OF BUDGET - NO CHANGE TO PUBLIC LIBRARY FOUNDATION
Shortly after 1 p.m. today, Governor Arnold Schwarzenegger released his May Revision of the Budget, which he noted is "fiscally responsible, fully funds education, and continues to pay down the debt." The so-called "May Revise" allows the Governor and his Department of Finance to make revenue and programmatic adjustments to the January Budget that was released earlier this year. At a press conference held in the Secretary of State's massive auditorium, the Governor stated that despite the housing slump, "revenue projections have come out right on target." However, the Governor cautioned, "California's Budget still lives on a razor's edge" and argued that it is difficult to make reductions or programmatic changes when "90 percent of the Budget is already committed." (e.g. Proposition 98, union agreements, etc.) He has proposed a series of reductions in the Budget, with his Budget primer reading: "Consequently, the only way to hold down spending is by approving very few discretionary spending increases while changing state law to reduce the cost of programs. The Governor's Budget proposed legislation to reduce various state programs for a total savings of $2.5 billion. The May Revision proposes additional program reductions for $430 million in additional savings, of which $230 million will be in the budget year, with the remainder occurring in the current year."
Despite the above referenced cuts, the Governor made no changes in the State Library budget, including the Public Library Foundation, which he continues to fund at the January Budget baseline level of $21.3 million. Since the Governor has not proposed an augmentation to the PLF, it will be necessary for the Assembly and Senate Budget Subcommittees to include an augmentation during their deliberations in the coming days if the PLF is to receive increased funding this year. As you may recall from our previous memo, the Senate Budget Subcommittee on Education Finance restored the $52,000 cut to the PLF, which was intended to fund the State Library's Integrated Library System Replacement Project. The subcommittee preferred that funding for the State Library project come from other non-Proposition 98 sources, instead of using the PLF as the annual funding stream. In addition, the Senate Budget Subcommittee will be revisiting the idea of providing an augmentation to the PLF when they meet later this week or next week. The Assembly Budget Subcommittee on Education Finance expressed initial concern over the $52,000 proposed reduction, but took no action - choosing to defer action until after the May Revise was released. Similarly, they have not made any decision regarding whether or not to augment the PLF.
We will alert you when the subcommittees take final action on the Public Library Foundation and related library items.
Posted on May 14, 2007 5:08 PM | Permalink