The state, which started its new fiscal year
July 1, remains without a budget, and there was no apparent progress last week
toward a budget that could win the required legislative votes and the
governor's approval.
Most members of the
state Senate and Assembly are on a month-long break – not formally described as
a recess, but with the same practical effect – but have been instructed by
legislative leaders that they are "on call" and must be able to
return to the Capitol within 24 hours if a budget vote is scheduled.
The budget
conference committee met July 7 but did not take up any of the major issues
that divide Republican and Democratic leaders. Nor did the committee flesh out
the outline of budget principles that the Democratic leaders of the Assembly
and Senate released last week, so it remains unknown whether the leaders have
united behind one specific Democratic budget, or if they remain deeply divided
over issues including borrowing, spending levels and revenue options.
Actions taken by the
budget conference committee during the hearing include deleting previously
approved appropriations of money from the water bond that was to appear on the
November ballot as Proposition 18, but now appears likely to be withdrawn from
the ballot and postponed until 2012.
Funding for a Red
Bluff drought-relief project, originally expected to come from the water bond,
was left as an open item, and might be included in the budget even if the bond
measure is postponed. Committee members indicated that the project is
"shovel-ready" and will receive federal matching funds, and said
stopping the project and then restarting it in two years would add
significantly to the cost.
The conference
committee also discussed issues such as whether to approve a ban on a soil
fumigant used by strawberry farmers, and the size of proposed buildings on
specific California State University campuses. Members from both parties
expressed a desire to get a budget done by the middle of this month.
Incoming Senate
Republican Leader Robert Dutton expressed frustration during the hearing that
the conference committee has approved only $2 billion in spending cuts, along
with approximately $7 billion in revenue proposals favored by the Democratic
members only. Even if all of these changes were successful, he said, the state
still will be facing a fiscal year deficit that he pegged at more than $10
billion. He urged the committee to begin making major spending reductions, and
said that each day of delay costs the state roughly $52 million.
Cal-TaxReports, July 12, 2010
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