State Controller John Chiang overstepped his legal authority in 2011 by deciding to dock lawmakers’ paychecks because he deemed the budget they had passed to be unbalanced, a state appellate court ruled Friday.
“(W)here the Legislature is the entity acting indisputably within its fundamental constitutional jurisdiction to enact what it designates as a balanced budget, the Controller does not have audit authority to determine whether the budget bill is in fact balanced,” Court of Appeal Associate Justice M. Kathleen Butz wrote; associate justices Cole Blease and William Murray Jr. concurred in this affirmation of a lower court’s 2012 decision.
Proposition 25 of 2010, approved by 55 percent of voters, lets the Legislature approve budges on a simple-majority vote, but it also says lawmakers must forfeit their pay and per diems for each day the state is past its constitutional deadline without a budget.
Chiang announced in June 2011 that his office’s review of the budget, which had been passed on the day it was due, “found components that were miscalculated, miscounted or unfinished. The numbers simply did not add up, and the Legislature will forfeit their pay until a balanced budget is sent to the governor.” He ended up withholding about $583,000 from the lawmakers.