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News from the Capitol
LEGISLATIVE ANALYST WEIGHS IN AND ASSEMBLY & SENATE BUDGET COMMITTEES BEGIN WORK ON 2010 BUDGET
On January 8, Governor Arnold Schwarzenegger presented his 2010-11 State Budget, and in his letter to the legislature, he notes, "With our national economy still struggling to recover, California, like most states, must confront an additional budget gap of nearly $20 billion... My budget calls for even greater reductions in nearly every aspect of state government than were necessary in 2009." In fact, the Governor proposes a series of deep cuts to health and human services, prisons, and state employee compensation adjustments. A major component of the Governor's solution is predicated on the state receiving almost $7 billion in relief from the federal government. It is rumored that the legislative leaders and the Governor will head to Washington D.C. in the coming days to lobby the California congressional delegation and others to plead their case for additional federal funds for California. In the meantime, the Governor has officially called a "special session" of the legislature to address the state's "fiscal emergency," and the "special session" will run concurrently with the 2010 legislative session.
On January 12, the state's non-partisan Legislative Analyst's Office (LAO) released their annual overview and analysis of the Governor's January Budget. The LAO acknowledges the "incredibly daunting challenges" that the legislature will face this year in order to close the $20 billion gap, and recommends the legislature act quickly in order to capture "full year" savings. The LAO's office said that while state leaders should actively request federal funding relief in complex areas such as Medi-Cal and Special Education, they caution that the "likelihood of Washington agreeing to all of the Governor's $7 billion in requests is almost non-existent." In fact, appearing before the Assembly Budget Committee on January 13, the Legislative Analyst, Mac Taylor, told the members of the committee, "I don't think there is any way you would get $7 billion (from the feds). It's probably closer to $3 billion."
The LAO also cautioned both the Assembly Budget Committee as well as their counterparts in the Senate Budget Committee that they should look to some of the Governor's proposals with a cautious eye, as "some of his proposals are not fiscally wise. For example, in In Home Support Services (IHSS), you will eliminate care to people who will ultimately go into more expensive skilled nursing." The LAO pledged to offer the two committees some alternative solutions in the coming weeks. Probably most sobering was the LAO's acknowledgement that even adopting the Governor's deep cut proposals, utilizing fund shifts, and seeking assistance from the federal government, etc. "is not going to solve your long-term Budget problems this year. You are still going to have a $5 to $6 billion problem next year. We need an ongoing solution." Thus, the LAO is suggesting the legislature consider fee proposals, new revenues, etc. in conjunction with cuts to programs.
The Senate and Assembly Budget Subcommittees will continue to hold hearings through the end of May on the Governor's proposal, as well as the LAO's comprehensive analysis and alternative recommendations, which should be available in mid February. As recently reported to CLA members, the Governor's Budget does not propose any cuts for library programs such as the Transaction Based Reimbursement, the Public Library Foundation, or the literacy program.
Submitted to California Libraries by:
Mike Dillon & Christina DiCaro
CLA Lobbyists
Posted on January 21, 2010 9:51 AM | Permalink