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A Done Deal! Senate and Assembly Pass State Budget
TO: CLA MEMBERS/ SYSTEMS/ NETWORK CONTACTS
FROM: Mike Dillon, CLA Lobbyist and Christina Dillon, CLA Lobbyist
RE: NEWS FROM THE CAPITOL
No Proposition 1A Borrowing; and Popular State Literacy Program Appears to Have Survived Elimination
After 77 days of the most prolonged, divisive State Budget negotiations in California history, the four top legislative leaders came to an agreement on Sunday afternoon. Keeping details of the terms of the deal close to the vest, the leaders addressed the media and said that they would be taking their proposed package to a Floor vote on Monday, provided they received approval from their respective caucuses. Shortly after 4 p.m. yesterday, both Floors convened for the purpose of vetting the proposal in caucus. Legislators in both the Assembly and Senate commenced Floor sessions after 8 p.m. in order to bring the Budget bill, and corresponding "trailer bills" up on the Floor for a vote.
Specific details of the revised Budget are:
- No Proposition 1A borrowing. You will recall that we had been fearful that, as the Republicans held firm on not wanting to increase taxes, this would increase the pressure on Democrats to resort to borrowing from cities, counties, and special districts to close the large Budget deficit. The Governor has been particularly vigilant on his unwillingness to borrow from local government, calling it "a temporary solution to kick that can down the alley."
- Health and human services, as well as K-12 education will avoid any additional cuts beyond the so-called "Senate Democratic Alternative." The "Senate Democratic Alternative" is the "Governor's August Compromise" with some additional modifications. Under the terms of the approved Budget, the K-12 Proposition 98 guarantee would receive an additional minimal increase for school districts which adds approximately $300 million.
- The Budget does not include the much talked about "one cent sales tax increase," but rather closes several tax loopholes and seeks accelerated pre-payments from individual income taxes. The now infamous "yacht tax" - affecting California boat owners - was one such tax loophole targeted for closure in last night's package.
You may recall that recently, several State Library administered programs had been targeted for additional cuts or complete elimination ("suspension") by the Senate Republican Proposal. As of late yesterday, Budget staff was unable to confirm the contents of the Budget package to us, as they had not yet fully briefed their caucus. However, it was alluded to us by a top Budget staffer that the Budget bill being voted on during last night's session does not suspend, but rather maintains, the popular California Library Literacy Service program. Further, the Budget rejects the 10 percent across-the-board cuts that the Senate Republican Proposal was calling for, and appears to recommend only a 5% cut to the Public Library Foundation, the Direct/Interlibrary Loan and California Library Services Act (Transaction Based Reimbursement), the Civil Liberties Public Education Program, the "English Acquisition and Literacy Program (or California Library Literacy Service Program), and the California Newspaper Project. (This version was previously adopted by the Budget Conference Committee, and will appear in AB 1781.) Once a Budget document is in circulation, we will confirm these facts and will let you know if there is any change.
During the minimal Floor debate in the Assembly, Assembly Budget Committee Chair, John Laird stated, "Today marks the end of a tumultuous Budget year...[This Budget] isn't what everyone likes." Assembly Budget Committee Vice Chair, Roger Niello added, "This has been a very difficult process. We have to come to closure."
The Budget bill ultimately passed the Senate at 2:15 this morning on a vote of 29 to 11, and passed the Assembly on a vote of 62 to 5. The reason for the late night vote and the many caucuses was because of the Governor's demands for his so-called "Budget Stabilization Fund," and his threat of a veto unless his requirements were met. Ultimately, both houses adopted a plan (SCA 13), which while agreeable to both parties may not be acceptable to the Governor. SCA 13 passed the Senate on a vote of 39 to 0, and the Assembly on a vote of 63 to 3, which could portend a veto override of the Budget, if the Governor elects to veto the Budget. The Budget will now be sent to the Governor for his signature or veto. In addition, he has the authority to sign the Budget with no changes, or he has so-called "blue pencil authority" to make reductions to programs in the Budget. The Governor will act on the Budget in the next few days.
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Posted on September 16, 2008 11:09 AM | Permalink