On January 9, Senator Jeff Denham introduced a package of three constitutional amendments and two concurrent resolutions designed to encourage lawmakers to pass a timely, balanced budget – with the penalty of lost pay if the budget is late.
The first of these measures, SCA 14, would require the governor's January budget to be balanced and submitted by January 10. Failure to do so would result in a forfeiture of the governor's salary pending the submission of a balanced budget. The measure defines "balanced budget" as one in which revenues are equal to expenditures, including general fund revenues that have been transferred to the "Budget Stabilization Account."
Another measure, SCA 15, would require the Legislature also to submit a timely budget bill and, after June 15, would require the Legislature to remain in session 24 hours a day until a budget is passed. The final constitutional amendment, SCA 16, would withhold legislative salaries pending passage of the budget if the Legislature fails to meet its June 15 constitutional deadline. The bill would prohibit retroactive payment of forfeited salaries.
Senator Denham also proposed SCR 68 and SCR 69 to modify the Legislature's joint rules related to the budget conference committee. SCR 68 would require the budget conference committee to be comprised of 10 members – three members appointed by the Senate Rules Committee, three by the Assembly speaker, and two members each by the minority caucuses in each house. SCR 69 would require that a vote by any committee, subcommittee or conference committee to take action on the budget bill be a two-thirds vote.
The senator also amended an existing bill with new language that would authorize the state controller to pay urgent expenses – for health and safety programs, for example – if the fiscal year starts without a budget in place. The bill, SB 398, would allow spending to continue at the existing levels, and would specifically state that the salaries and per diem of lawmakers could not be paid if a budget was not in place.
Cal-Taxletter January 11, 2008
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