California Legislature quickly passes state budget
Wyatt Buchanan,Marisa Lagos, Chronicle Sacramento Bureau
San Francisco Chronicle June 29, 2011 04:00 AM
This article appeared on page A - 1 of the San Francisco Chronicle
Sacramento --
After months of fits and starts, the state Legislature approved a budget package Tuesday night to close what was once a $26.6 billion deficit - giving the state a spending plan before the start of the fiscal year and ensuring that lawmakers once again will receive their pay.
With remarkably little debate, both houses of the Legislature passed the eight bills that made up the final pieces of the state budget plan. Passage in the Senate was stalled over a controversial plan to eliminate and replace redevelopment agencies, but two Democratic holdouts gave their support after the Senate leader leaned hard on them for their votes.
Gov. Jerry Brown is expected to sign the measures soon, which bring general fund spending to $86 billon for the fiscal year that begins Friday, down from the current year's $91.5 billion.
The compromise package marks a milestone for Brown, whose sole focus since his unprecedented return to the governor's office in January for a third term has been to close the state's budget gap and put California on firmer financial footing. But the spending plan is significantly different from what he initially proposed, after GOP lawmakers refused to support a special election on taxes Brown had wanted.
Both houses began voting on the budget around 6:30 p.m. Tuesday. The Assembly raced through the bulk of the package in less than an hour, with only a handful of members rising to speak. Republican lawmakers unanimously opposed the budget bill, while the entire Democratic caucus voted in support.
Assembly Budget Committee Chairman Bob Blumenfield, D-Woodland Hills (Los Angeles County), who introduced all of the measures, acknowledged that Democrats were taking tough votes.
"This budget relies primarily on cuts - brutal cuts - which place many of us well outside our comfort zone. These cuts will forever haunt our conscience," he said. "However, those who do vote for this budget can take solace in the fact that they did what was necessary to move California forward onto firm financial footing."
Assembly Budget Committee Vice Chairman Jim Nielsen, R-Gerber (Tehama County), criticized the package as "woefully short" on reforms and said he is doubtful that the extra tax revenue will materialize next fiscal year. Meanwhile, Assemblywoman Shannon Grove, R-Bakersfield, said the package "sets the state up for big government spending."
Those included deep cuts for health and social services, including new co-pays and caps on medical services and the elimination of the Adult Day Health Care program. Lawmakers also cut $577 million in funding for developmental disability services.
In May, an official update of real and anticipated tax revenues sliced the remaining deficit to $9.6 billion. This week, officials at the Department of Finance said revenues for the new fiscal year that begins Friday are expected to be $4 billion higher than expected, cutting the deficit further.
Also part of the final plan are $300 million in additional cuts to the University of California and California State University systems, a $450 million unspecified cut to health programs, $460 million in cuts and one-time delays of funding for courts, and the postponement of an almost $3 billion payment to schools.
After months of fits and starts, the state Legislature approved a budget package Tuesday night to close what was once a $26.6 billion deficit - giving the state a spending plan before the start of the fiscal year and ensuring that lawmakers once again will receive their pay.
With remarkably little debate, both houses of the Legislature passed the eight bills that made up the final pieces of the state budget plan. Passage in the Senate was stalled over a controversial plan to eliminate and replace redevelopment agencies, but two Democratic holdouts gave their support after the Senate leader leaned hard on them for their votes.
Gov. Jerry Brown is expected to sign the measures soon, which bring general fund spending to $86 billon for the fiscal year that begins Friday, down from the current year's $91.5 billion.
The compromise package marks a milestone for Brown, whose sole focus since his unprecedented return to the governor's office in January for a third term has been to close the state's budget gap and put California on firmer financial footing. But the spending plan is significantly different from what he initially proposed, after GOP lawmakers refused to support a special election on taxes Brown had wanted.
Compromise set
On Monday, the governor finally gave up on talks with Republicans and, alongside Democratic legislative leaders, announced a compromise that relies heavily on spending reductions, rosy revenue projections and the possibility of deeper cuts to schools, human services and higher education if those revenues do not materialize.Both houses began voting on the budget around 6:30 p.m. Tuesday. The Assembly raced through the bulk of the package in less than an hour, with only a handful of members rising to speak. Republican lawmakers unanimously opposed the budget bill, while the entire Democratic caucus voted in support.
Assembly Budget Committee Chairman Bob Blumenfield, D-Woodland Hills (Los Angeles County), who introduced all of the measures, acknowledged that Democrats were taking tough votes.
"This budget relies primarily on cuts - brutal cuts - which place many of us well outside our comfort zone. These cuts will forever haunt our conscience," he said. "However, those who do vote for this budget can take solace in the fact that they did what was necessary to move California forward onto firm financial footing."
Assembly Budget Committee Vice Chairman Jim Nielsen, R-Gerber (Tehama County), criticized the package as "woefully short" on reforms and said he is doubtful that the extra tax revenue will materialize next fiscal year. Meanwhile, Assemblywoman Shannon Grove, R-Bakersfield, said the package "sets the state up for big government spending."
Trimming the deficit
The plan is the culmination of a months-long effort to eliminate the $26.6 billion deficit that California faced in January. Lawmakers took actions in March that were signed by the governor to reduce the deficit by $10.8 billion through a mix of cuts and shifts in state spending.Those included deep cuts for health and social services, including new co-pays and caps on medical services and the elimination of the Adult Day Health Care program. Lawmakers also cut $577 million in funding for developmental disability services.
In May, an official update of real and anticipated tax revenues sliced the remaining deficit to $9.6 billion. This week, officials at the Department of Finance said revenues for the new fiscal year that begins Friday are expected to be $4 billion higher than expected, cutting the deficit further.
Also part of the final plan are $300 million in additional cuts to the University of California and California State University systems, a $450 million unspecified cut to health programs, $460 million in cuts and one-time delays of funding for courts, and the postponement of an almost $3 billion payment to schools.
No new taxes
The plan includes no new taxes - though it does raise vehicle registration fees by $12 - and it includes no changes in public employee pensions, environmental regulations or spending restraints sought by Republicans.
Though Brown remained confident until this week that he could persuade four Republicans in the Legislature to support his plan, he was never able to win them over. Republicans in the Senate said the governor would not agree to putting their plan for changes in public employee pensions on the ballot.
Jan. 10: Brown introduces his $84.6 billion spending plan, which includes drastic cuts to social services and higher education. He pushes for tax extensions and increases - but only with the approval of state voters - to raise $14 billion to help plug the deficit.
March 16-17: The Legislature approves $10.8 billion in cuts and other solutions proposed by Brown. Deficit shrinks to about $15 billion.
May 16: Brown revises his spending plan, saying that an unexpected $6 billion uptick in revenues has reduced the deficit to $9.6 billion. His plan increases education funding by $3 billion and drops one of four proposed tax increases.
June 15: Democrats in the Legislature, facing a constitutional deadline to pass a budget and unable to win Republican support for taxes, pass their own plan by majority vote to close the remaining deficit. It's devoid of taxes and draconian cuts.
June 16: Less than 24 hours after the budget is passed, Brown vetoes the spending plan, saying he opposed the "billions of borrowing, legal maneuvers that are questionable and a budget that will not stand the test of time." Shocked Democrats say they are "dismayed" by the governor's action.
June 21: In another blow to Democrats, Controller John Chiang cuts off lawmakers' pay, saying the plan they adopted June 15 was not balanced.
June 27: Brown and Democratic leaders in the Legislature announce they have agreed to a revised plan to close the state's remaining $9.6 billion deficit as the governor abandons efforts to win Republican support for taxes. The plan relies largely on $4 billion in newly projected revenues.
June 28: The Legislature approves a new $86 billion spending plan for California.
California budget timeline
Jan. 3: Gov. Jerry Brown is sworn in as California's 38th governor. The state faces a projected $26.6 billion deficit through June 2012.Jan. 10: Brown introduces his $84.6 billion spending plan, which includes drastic cuts to social services and higher education. He pushes for tax extensions and increases - but only with the approval of state voters - to raise $14 billion to help plug the deficit.
March 16-17: The Legislature approves $10.8 billion in cuts and other solutions proposed by Brown. Deficit shrinks to about $15 billion.
May 16: Brown revises his spending plan, saying that an unexpected $6 billion uptick in revenues has reduced the deficit to $9.6 billion. His plan increases education funding by $3 billion and drops one of four proposed tax increases.
June 15: Democrats in the Legislature, facing a constitutional deadline to pass a budget and unable to win Republican support for taxes, pass their own plan by majority vote to close the remaining deficit. It's devoid of taxes and draconian cuts.
June 16: Less than 24 hours after the budget is passed, Brown vetoes the spending plan, saying he opposed the "billions of borrowing, legal maneuvers that are questionable and a budget that will not stand the test of time." Shocked Democrats say they are "dismayed" by the governor's action.
June 21: In another blow to Democrats, Controller John Chiang cuts off lawmakers' pay, saying the plan they adopted June 15 was not balanced.
June 27: Brown and Democratic leaders in the Legislature announce they have agreed to a revised plan to close the state's remaining $9.6 billion deficit as the governor abandons efforts to win Republican support for taxes. The plan relies largely on $4 billion in newly projected revenues.
June 28: The Legislature approves a new $86 billion spending plan for California.
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