1

Hello, Alameda. Finally a state budget

I made a bet with a friend that there’d be a state budget passed by Tuesday midnight. Then we pushed the bet, double or nothing, to noon the next day. And then we just sort of stopped with the betting and started waiting and seeing.

Finally, though, a deal has been made. A 12-cents a gallon gas tax is out, an agreement that legislators won’t be paid when there’s no budget is in—as is a proposal to expand the state lottery and borrow against expected revenue. Details here. I had to do a double-take/triple-blink though when I saw that the deal—reached when one more vote in favor was negotiated with Republican Sen. Abel Maldonado—includes placing a constitutional amendment to change how primaries held in California on the ballot. What a world we live in when a annual budget negotiation includes a promise of constitutional rejiggering?

Huffington Post Blogger Byron Williams, in a post titled, “While California Slept,” has this to say about the sorry state of California’s budget and budget process:

For decades, the California electorate has been buying the overvalued fools gold of direct democracy. We actually believed, based on our votes, we could make better-informed decisions via the initiative process than the individuals we sent to represent us in Sacramento.

And this:

Californians passed the most draconian term limits initiative in the country. It robbed legislators of institutional memory, placed disincentives for members of the opposite party to crossover and make a deal, and its insidious underlying purpose was to get rid of a single individual–former California Speaker Willie Brown.

And this:

The passing of Proposition 13, while still popular, carries that little 2/3-vote requirement to raise revenues, hence the tyranny of the minority. Proposition 98, though perhaps on paper a worthy cause, ties the Legislature’s hands in term of what resources are actually available in the budget.

0

California budget stalemate continues

To recap, Repubs proposed this on Monday:

…GOP leaders released a $22 billion package of their own that called for deep cuts to education and social service programs, as well as raiding other pots of money voters approved for early child development and mental illness. Democrats contend the Republican’s plan to cut more than $10 billion from schools amounted to shutting down every school in the state for two months or increasing class sizes by 40 percent. [Read the entire AP story here.]

The state is facing a budget deficit which is now estimated to be something over $40 billion. If nothing is done, it is looking like California will run out of cash to pay its bills some time in February. Dems have a counterproposal, which wriggles around the tyranny of the minority (a solid majority of California lawmakers are Democrats), caused by state laws which require two-thirds vote of both state legislative bodies to pass any new taxes. A bit about the Dem proposal from the Chronicle:

State lawmakers are expected to vote today on an $18 billion budget, put forth Wednesday by Democrats, that contains more than $9 billion in added revenue and requires only a simple majority vote of the Legislature to be approved. The move boxes in Republicans, who have just enough votes to block lawmakers from approving tax and budget bills that require a two-thirds majority in the Democratic-controlled Legislature.

But a spokesperson for Gov. Arnold Schwarzenegger has said he will not sign off on the Dem plan without some changes. More up-to-the-minute budget news at Calitics.

2

Hey, Alameda: Budget crisis news from around the state

Perhaps you’ve been distracted by the failing of major banking institutions/insurance companies/car companies, to notice that California’s budget is looking to be $28 billion short in the next 18 months. What might the impact be around the state? Here’s some headlines:

By capping enrollment in the state college systems, the community college system may become even more impacted. And more cuts to K-12 schools seem inevitable. Look for cuts to social services, to city services, and parks.