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Governor slashes PLF and TBR

TO: CLA Members/ Systems/ Network Contacts

FROM: Mike Dillon, CLA Lobbyist; Christina Dillon, CLA Lobbyist

RE: News From the Capitol


GOVERNOR SIGNS BUDGET: MAJOR DISAPPOINTMENT FOR LIBRARIES AS GOVERNOR SLASHES PLF AND TBR

Shortly after noon today, Governor Arnold Schwarzenegger, flanked by Assembly Speaker Fabian Nunez and Senate Republican Leader Dick Ackerman, signed the 2007-08 State Budget in the rotunda of the State Capitol. You will recall that the Budget bill was 52 days late, and relations between the two houses and the Governor were significantly strained during the contentious negotiations. At the bill signing, the Governor noted that the "Budget has a zero deficit. That is an extraordinary accomplishment." Unfortunately, the attempt to obtain a "zero deficit" meant that an additional $700 million was cut, by the Governor, from the Budget version that was sent down to him. Suffering significant cuts today were two major library programs: the Public Library Foundation and the Transaction Based Reimbursement Program.

Last year, the Governor, in his May Revise and subsequent Budget, approved a $7 million augmentation to the Public Library Foundation, bringing the total baseline figure to $21.3 million This year, the Budget Conference Committee approved a $1 million augmentation to the fund. However, the Governor has chosen to slash not only the $1 million augmentation for 2007-08, but in addition, he is taking away the $7 million augmentation he provided last year. In his veto message he states:

"I am deleting the discretionary $1,000,000 legislative augmentation to the Public Library Foundation. This reduction is necessary to limit program expansions and help bring ongoing General Fund expenditures in line with existing resources. In addition, I am deleting $7,000,000 in order to further build a prudent reserve in light of the various uncertainties in revenues and spending that we face this year."

The Governor's reduction today brings the new PLF baseline down to $14.3 million.

Similarly, you may recall that the Governor, in his May Revise and subsequent Budget, approved a $7 million augmentation to the Transaction Based Reimbursement program last year. Today, the Governor inexplicably cut $7 million from that program as well. His veto message states:

"I am deleting $7,000,000 for Direct Loan and Interlibrary Loan services. This reduction is necessary in order to further build a prudent reserve in light of the various uncertainties in revenues and spending that we face this year."

We do not know how this reduction will now affect the federal match component for this program, and we will be working with the State Library. The Governor's reduction brings the new TBR baseline down to $11.6 million.

We are deeply disappointed in the Governor's actions today, particularly in light of the inconsistent message, wherein he funded both of these programs last year in the approximate same amounts that he cut this year. These programs were just beginning to recover from the devastating cuts that were made to the PLF and TBR under the previous Governor, Gray Davis. One Budget staff member, who we worked with throughout the year, called immediately after seeing the major cuts and commented, "You have my anger, empathy, and sympathy."

NOTE: The CLA office is interested in obtaining examples from you of what these drastic cuts will mean to your library. Please email CLA with your comments ASAP. In addition, we would encourage you to share this story with your local newspapers and media outlets. Further, please pass this memo along to your locally elected officials, in the event they wish to prepare a media alert.

Posted on August 24, 2007 1:50 PM |

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