Brown's first veto secures budget plan for 'trigger' cuts
Posted: 09/16/2011 02:58:42 PM PDT
SACRAMENTO -- Gov. Jerry Brown handed down his first veto of the post-legislative session Friday, turning back the Democratic-led Legislature's effort to consider alternatives to potential cuts that would be triggered by a revenue shortfall by the end of the year.
Brown vetoed Senate Bill X1 6, saying his plan to backfill the budget with so-called trigger cuts -- which could affect schools, universities, community colleges and welfare programs -- should stand.
"This year for the first time in a long time, we passed a no-gimmicks, on-time budget," Brown wrote in his veto. "Why would we undermine the plan that has earned widespread respect and helped stabilize California's finances?"
Brown had warned that he would disappoint legislators with his vetoes; with 600 bills on his desk, more disappointment is imminent.
The legislation would have required the director of the Department of Finance to consult with legislative leaders on alternatives to the cuts that may be triggered if $4 billion of new revenue does not appear in the final months of the year. The likelihood of all or most of the revenues materializing has come into doubt with the recent volatility of the stock market and continuing stagnant economy.
Brown said allowing legislators to undo his budget deal would have "undermined investor confidence" in California.
"The trigger mechanisms were adopted when I signed the budget and were essential to improving our credit
standing," he said in a statement. "Indeed, our no-gimmick, on-time budget was the reason S&P assigned its highest rating to the short-term notes sold this past week--the first time that's happened since 2007."
Brown also signed his first two bills of the post-legislative session. One, Senate Bill 335, extends the Hospital Quality Insurance fee to raise $7 billion, and bring in an additional $6.1 billion in matching federal funds to provide health care services for low-income, vulnerable patients and children. Brown said it will save the state's general fund more than $850 million over a 30-month period -- a more than $500 million savings to the general fund than previously estimated.
Brown also signed ABX1 21, which extends a tax on Medi-Cal managed health care plans for an additional year. Thousands of children and teenagers will continue to get health coverage through the Healthy Families Program. The continuation of the tax will raise more than $200 million in new revenue, bring in an additional $300 million in federal funds, and save the general fund $103 million this year.
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