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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
I. SENATE BUDGET SUBCOMMITTEE PROTECTS PLF - ADDS $2 MILLION
Last Friday, the Senate Budget Subcommittee on Education Finance Number 1 considered the State Library budget, which includes taking action with regard to the Public Library Foundation. As you may recall from our previous memo, the Senate Budget Subcommittee rejected the Governor's May Revision, which called for a $52,000 reduction to the Public Library Foundation in order to fund the State Library's request for an upgraded Integrated Library System Replacement Project. Instead, the Senate Budget Subcommittee supported CLA's request to reinstate the dollars to the PLF and create a separate Budget line-item for the State Library's ILS item. The subcommittee then left the issue of consideration for additional funding for the PLF "open" until after the May Revision had been released and a better determination of the state's fiscal picture could be determined.
On Friday, the Senate Budget Subcommittee voted to support a $2 million augmentation to the PLF. The motion received positive comments from both Senator Joe Simitian, a member of the subcommittee and author of CLA's library construction bond, and Senator Jack Scott, the Chair of the subcommittee. Senator Scott noted that the subcommittee has always been a strong supporter of the libraries and added, "I feel I have been a strong advocate for the PLF." Senator Simitian then echoed the Chair's comments. The motion passed with 2 "ayes" and Senator Bob Margett abstaining. The Department of Finance representative cautioned, "We will more than likely have concerns with the augmentation." We went up on behalf of CLA and thanked the subcommittee for recognizing the continuing need. We noted that while we recognize it is a tight Budget year, "every little bit helps."
Yesterday afternoon, over in the Assembly, the Assembly Budget Subcommittee on Education Finance also considered the PLF issue and, like the Senate subcommittee, they voted to restore the $52,000 to the PLF that the Governor proposed reducing. However, the subcommittee did not offer any additional augmentation to the PLF.
As is custom, when there is a difference between the so-called "Senate Version" of the Budget and the "Assembly Version" of the Budget, as there is with the PLF ($2 million augmentation Senate, $0 augmentation Assembly), the issue is sent into Budget Conference Committee negotiations. The PLF will be one of several hundred items where there needs to be a reconciliation between the differing dollar amounts between the two houses. The Budget Conference Committee will begin meeting in approximately two weeks and will work through the summer to produce a Budget document to present to the Governor for signature. The Senate announced its Budget Conference Committee conferees late yesterday. They are: Senator Denise Ducheny (Chair of the Senate Budget Committee), Senator Dennis Hollingsworth (Vice Chair of the Senate Budget Committee), and Senator Mike Machado. The Assembly conferees have yet to be named, but more than likely they will be Assemblyman John Laird (Chair of the Assembly Budget Committee, Assemblyman Roger Niello (Vice Chair of the Assembly Budget Committee), and Assemblyman Mark Leno (Chair of the Assembly Appropriations Committee.) When these names have been made official in the Assembly, we will alert you and will ask library supporters to write on behalf of the Senate Version of the Budget.
II. LIBRARY CONSTRUCTION BOND WILL HAVE DETAILS WORKED OUT ON "SUSPENSE"
On Monday, the Senate Appropriations Committee heard SB 156 by Senator Joe Simitian, which is a $4 billion library construction and renovation bond measure. Due to its enormous fiscal costs, the committee placed the bill on its so-called "suspense file." The "suspense file" is a method by which the committee prioritizes all bills with fiscal implications of $150,000 or greater and decides whether to "hold the bill in committee" or "pass it forward" to the Senate Floor. The "suspense file" will likely be taken up late next week.
In his opening remarks, Senator Simitian (a newly appointed member to the committee, as of last week), told the members, "There is a current need of over $6 billion, and 75 percent of all project applicants were denied funding during the last bond due to lack of dollars." He then noted that he intends to take amendments to change the date that the bond would appear on the ballot from the February Primary to November 2008. He also added that there were some issues that he wanted to address while the bond was on the "suspense file," including accepting amendments that would allow the Bond Board to rescind grants for non-performance and issue them to another qualified applicant, as well as include an amendment to set-aside a dollar amount in order to fund the "Outstanding" projects from Cycle 3. Senator Torlakson, the Chair of the committee, stated, "There has been a huge pent-up need for a long time. I would like to ask you to consider giving some projects priority." Senator Simitian offered, "The Outstanding category is the logical candidate. They are the top ranked and so that can be relatively managed. However, there is $329 million in the Very Good category. I don't want to make a commitment that we can't keep." The Senator's comments are in regard to the over-riding issue of what will the Senate leadership, Assembly leadership, and Governor allow the over-all bond amount to eventually be, knowing that the state is facing tight bonded indebtedness capacity as each new bond is passed. For example, the fiscal committee analysis notes the bond amount at $4 billion - but a total committed amount of $7.454 billion for principal and interest over 30 years. The analysis states, "Staff notes that California voters have authorized $121.8 billion in general obligation bonds since 1970 and two-thirds of that amount has been authorized since 2002. According to estimates prepared by the Legislative Analyst's Office, the state's General Fund debt service costs are expected to rise from $4.7 billion in 2007-08 to $7.5 billion in 2014-15. If ultimately approved by the voters, this measure would increase those costs. Each dollar spent paying debt service is a dollar that could have been spent on other programs." (Senate Appropriations Committee analysis.)
As CLA is the sponsor of the measure, we testified in support and noted that library usage continues to increase and communities demand library services. We were joined in support by the California State Association of Counties, the lobbyist for Sacramento county and city, and the lobbyist for the city of Burbank. Senator Torlakson thanked all present and also thanked all of the legislators who have previously worked to support library bonds, including committee member Senator Ellen Corbett.
At this time, CLA and Senator Simitian are scheduling a series of meetings with key leaders and legislators to garner support for the bond and encourage a high dollar amount remain in the bond.
Posted on May 23, 2007 3:43 PM | Permalink