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Budget Update - Action Requested
September 3, 2008
TO: CLA Members/ Systems/ Network Contacts
FROM: Mike Dillon, CLA Lobbyist, Christina Dillon, CLA Lobbyist
RE: News From the Capitol
BUDGET UPDATE AND NEW THREATS TO LIBRARY FUNDING:
ACTION REQUESTED
I. Session Ends - No Surprise, No Budget
On the evening of Sunday, August 31st, (the deadline for passing ordinary, majority-vote bills), the Legislature concluded the 2007-08 Legislative regular Session. Both the Assembly and Senate remain in session as Sunday's deadline does not apply to fiscal bills such as the State Budget, and related Budget Trailer Bills, as well as urgency measures, all of which require a 2/3 vote. Because of the Governor's previous threat to veto all bills until the Legislature passes a Budget, the Legislative leadership is holding close to 700 bills in "engrossing and enrollment," a final step where bills are properly prepared before going to the Governor. September 30th is the last day for the Governor to sign or veto the bills that were passed by the Legislature before September 1st, and rumors circulate as to what the Governor will do if the Legislature dumps 700 bills on his desk prior to the deadline.
II. Budget Battle Continues - Senate Republican Proposal Recommends Cuts or Suspension of Many Library Programs
For weeks, Assembly and Senate Democrats have been critical of the Republicans for insisting on major Budget cuts to balance the Budget without indicating where the cuts would be made, or offering an alternative Budget plan. Last Friday, Senate President pro Tem Don Perata brought up the Governor's so-called "August Compromise Budget," with a few modifications, on the Senate Floor for an hour-long debate. He said the Democrats would agree to the Governor's proposals for a temporary 3 year sales tax increase, no borrowing from local government, an agreement to "securitize" the lottery, and deeper cuts to schools, child care, and health and welfare, etc. Senator Perata stated, "The only demand we did not give the Governor is the tax cut after the temporary sales tax increase expires." When it was obvious there were no Republican votes, even for the Governor's "compromise," Senator Perata angrily commented: "Eight months later, two months late, and with little to offer; my friends across the aisle, it's your turn. Either vote to approve the compromise that the Governor tells us has your support, or offer an alternative acceptable to the majority and the Governor." Republican Senator Sam Aanestad subsequently asked Senator Perata if the Republicans were to prepare an alternative Budget, would the Democrats allow it to be brought up on the Floor for a vote, to which Senator Perata said: "Yes."
The following day, Saturday, the Senate Republicans, with involvement of Assembly Republicans, called a press conference to introduce their alternative which they call a "no tax increase Budget." Without going into a lot of detail, the Republican plan rejects the sales tax increase, proposes to "securitize" the Lottery for about $2 billion, and takes Redevelopment Agency funds in the amount of approximately $350 million. It also makes substantial cuts, similar to those proposed by the Governor. Like the Governor's plan, it does not borrow from local government property taxes and transportation funds. Additionally, the Republican plan calls for a number of Budget reforms and so-called "economic stimulus" proposals, such as workers schedule flexibility (10 hour days) for employees, many of which are likely to be opposed by Democrats. Governor Schwarzenegger criticized the proposal saying "I applaud the Republicans for proposing a budget and moving the debate forward. That said, their budget is not fiscally responsible because it simply pushes our problems to next year. We were sent to Sacramento to solve problems once and for all - not kick the can down the alley for others to deal with in the future."
Monday afternoon the Senate held a rare holiday Floor session, as Senator Perata has scheduled sessions for every afternoon this week. The Republicans announced that they would not be able to translate their one-page Budget outline into actual Budget bill form that can be voted upon, until Friday. The Assembly has not met since Sunday on the Floor, but the Assembly Budget Committee met this afternoon to hear the so-called Republican Proposal. The committee hearing began amidst confusion as the committee was not working from an actual piece of legislation, and technically they were working off of a Senate working draft proposal. Several Republican members of the Assembly Budget Committee asked why the committee was holding a hearing when the hearing would be more appropriately the purview of the Senate, while another Republican asked, "Did you even invite anyone from the Senate Republicans?" The Chair, Assemblyman Laird, responded that it was the apparent misunderstanding of the Democrats that both Republican Leaders (Senate and Assembly) were endorsing the plan, as "the Assembly Republican Leader had been present at the press conference" where the plan was rolled out, and subsequently endorsed the plan.
The Senate Republican plan contains specific recommendations for cuts or suspension of programs operated by the State Library. In most cases, the Senate Republicans recommend that the majority of the library programs be reduced by 10 percent, not the 5 percent reduction that the Budget Conference Committee ultimately adopted. Specifically, the Senate Republicans are proposing:
Proposes a 10 Percent Cut
Public Library Foundation: The Senate Republicans would cut the PLF by an additional $717,000. If approved, this would bring the total 2008-09 cut to 10 percent.
Direct/ Interlibrary Loans & California Library Services Act: The Senate Republicans would cut the Transaction Based Reimbursement by $717,000. If approved, this would bring the total 2008-09 cut to 10 percent.
Civil Liberties Public Education Program: The Senate Republicans would cut this program an additional $25,000. If approved, this would bring the total 2008-09 cut to 10 percent.
Proposes Suspension of the Program:
English Acquisition & Literacy Program: The Senate Republicans would not only cut the program by $253,000, but they would, according to the Plan, save a whopping $4.558 million by an action to ultimately suspend the program altogether. They go on to state, "English literacy instruction is available from other sources (K-12, adult education, community colleges, community groups, etc.)"
CA Newspaper Project: The Senate Republicans would not only cut the program by $12,000, but they would, according to the Plan, save an additional $216,000 by an action to suspend the project altogether until the state's fiscal condition improves (these are the savings beyond a 10% cut.)
During the hearing this afternoon, the Assembly Budget Committee briefly compared the three Budget proposals (the Governor's, the Democrats', and the Senate Republicans), as it pertains to Proposition 98 and the securitization of the lottery against the education dollars. Several education leaders voiced their opposition to the plan, claiming the complex lottery scheme could result in a $1.9 billion loss to education. The Senate Republican proposal also makes significant cuts that health advocates called devastating and unsafe particularly for Child Protective Services and In Home Health Care programs. At the conclusion of the hearing, Chairman Laird noted that the committee would wait to take any action on the Senate Republican proposal until, likely, next Monday, at which time, they anticipate an actual piece of implementing legislation will be in print.
At this point, as you might surmise, both sides remain far apart, and without new revenues being part of the mix, the proposed cuts to libraries will remain on the table and local property taxes are still at risk.
ACTION NEEDED
Please take a moment today to write the members of the "Big 5" Leadership and urge their strong opposition to the Senate Republican Budget Proposal, and please note in your letters, the devastating effect it would have on the five major library programs listed above.
The Honorable Arnold Schwarzenegger
Governor, State of California
State Capitol
Sacramento, CA. 95814
The Honorable Don Perata
Senate President pro Tempore
State Capitol
Sacramento, CA. 95814
The Honorable Dave Cogdill
Senate Republican Leader
State Capitol
Sacramento, CA. 95814
The Honorable Karen Bass
Speaker of the California Assembly
State Capitol
Sacramento, CA. 95814
The Honorable Mike Villines
Assembly Republican Leader
State Capitol
Sacramento, CA. 95814
Note: When you send your letters, will you please cc: the following two individuals who have been strong supporters for these library programs:
Assemblyman John Laird, Chair
Assembly Budget Committee
State Capitol
Sacramento, CA. 95814
Senator Denise Moreno Ducheny, Chair
Senate Budget Committee
State Capitol
Sacramento, CA 95814
Posted on September 3, 2008 4:40 PM | Permalink