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GOVERNOR RELEASES 2010 BUDGET: NO CUTS TO LIBRARY PROGRAMS
Shortly before noon today, Governor Arnold Schwarzenegger presented what will be his last January Budget, during his final year in office. CLA had been bracing itself for potential cuts to vulnerable library programs such as the Public Library Foundation, Transaction Based Reimbursement and the California Library Literacy and English Acquisition Program, given the state's massive $19.9 billion projected deficit for 2010. However, we are pleased to note, that thanks to Governor Schwarzenegger and his Administration, no cuts are currently being proposed for any of these valuable services in his 2010-11 State Budget. (*)
During his noon address, the Governor noted that while the legislature had closed a significant Budget gap last year, "tough times are still ahead." The Governor acknowledges that the State is facing a $19.9 billion deficit ($6.6 billion in the current year, and $13.3 billion in the 2010-11 year), which he states is due to $3.4 billion in lower revenues, $4.9 billion in court decisions, $1.4 billion in program growth and case load adjustments, etc. He proposes the following solutions to address the gap:
1) $8.5 billion in spending cuts. These will fall primarily upon prisons, Health and Human Services ($2.9 billion in cuts to Medi-Cal, child care reimbursements, In Home Support Services), and in state employee compensation adjustments, specifically a 5% increase in monthly contributions to CalPERS, a 5% salary reduction, and a 5% reduction in the cost of each state department's workforce payroll. Presumably, this latter requirement would also include the State Library. (The Governor would halt the currently imposed furloughs in June 2010).
2) $4.5 billion in fund shifts and creative financing, such as a $986 million transportation funding swap, and fund transfers in areas such as Human Services and CalFire.
3) $6.9 billion in federal funds. The Governor notes that California currently receives 78 cents on the dollar, while Texas receives 94 cents, and New Mexico more than $2 from the federal government. He argues that California is victim to "discriminatory formulas that force us to supplement other states." (Mostly, he says, in the areas of Medi-Cal, federal education mandates, and immigration.) The Governor announced that he will be traveling to Washington D.C. along with California legislative leaders in order to argue for their fair share of the federal dollars. Note: The Governor has cautioned that if federal assumptions don't materialize, his Administration "has a trigger list of additional cuts" that they will submit to the legislature, in order to close the gap.
The Governor has also called a "Special Session" of the legislature to address immediate Budget "solutions." According to the Governor's Director of Finance, Ana Matosantos, the legislature would have 45 days to act under the "Special Session," in order to find $8.9 billion of "full year solutions." If they do not act quickly and wait until July when the new Budget is due, $2.4 billion in "solutions" would be lost.
(*)- The baseline for the Public Library Foundation currently stands at $12.9 million. The Governor is recommending no cut to this program. The baseline for the Transaction Based Reimbursement currently stands at $12.9 million. The Governor is recommending no cut to this program.
The baseline for the California Library Literacy and English Acquisition Program currently stands at $4.5 million. The Governor is recommending no cut to this program.
The Governor is also recommending no cut to the California Newspaper Project nor the California Civil Liberties Public Education Act.
CALIFORNIA STATE ASSEMBLY CHOOSES NEW SPEAKER-ELECT
Yesterday, current Assembly Speaker Karen Bass, who will be termed out at the end of this year's session, thanked the body for the privilege of serving as Speaker, and then she entertained a motion to elect a new Speaker. Over the December holiday, rumors had circulated that Assemblyman John A. Perez had amassed enough votes to succeed Speaker Bass as she phases out her duties this year. Assemblyman Perez, an affable, intelligent legislator from Los Angeles, was perceived to be a solid choice by many, as he is a Freshman member of the Assembly and could assume the role of Speaker for 5 more years, thus ensuring some continuity of leadership. Many have praised his ability to work with divergent interests during his first year in office. Assemblyman Chuck Calderon, who placed Assemblyman Perez's name in nomination said, "Having served under 7 speakers, I have seen what it takes to become a good Speaker. His character, intellect, and skill are intact. He is fair, witty, and keenly analytical." Assemblyman Perez received 48 Democrat votes, while Assembly Republican Leader Sam Blakeslee only received 26 votes.
After the roll was officially announced, Speaker-Elect Perez was escorted to the rostrum to make a few remarks. Most notably, he pledged to get the legislature fully involved in the Budget process. In past years, the so-called "Big 5" - the Governor and the four legislative leaders - have taken over a large part of the negotiations and the deliberations have remained mostly confidential. Assemblyman Perez notes that under his leadership, "The Big 5 is the ending point, not the starting point. I will present your Budget to the Big 5, not the Big 5's Budget to you." He then said to the Assembly body, "Thank you for your confidence and trust." Speaker Bass and Speaker-Elect Perez will issue a statement in the coming weeks regarding the official transition date for leadership.
Submitted by Mike Dillon & Christina DiCaro, CLA Lobbyists
Posted on January 8, 2010 2:14 PM | Permalink