Perata said that he told Cogdill that "I had come to a decision that it would seem to me to be destructive to continue the recall while at the same time he and I were going to sit down with our counterparts in the Assembly and in seven weeks try to put together a budget that may well have to eliminate a $14 billion deficit. There was no quid pro quo. I didn't ask for anything. I just told him that I did not believe that this kind of politics, cast against the huge problem that we're having in this state, made a lot of sense."

BUDGET REQUIRES SUPER MAJORITY VOTES
* In California, to pass a State budget, 2/3rds vote are required to approve it - meaning 27 votes out of the 40 member State Senate and 54 votes out of the 80 Assembly.
* The problem is that Democrats control 25 seats in the State Senate, with Republicans holding 15.  Democrats need at least 2 Senate Republicans to vote for the Budget - and some Democrats were counting on Denham to provide that vote, along with fellow Republican Abel Maldonaldo (Republican - Santa Maria). 
* In the Assembly Democrats control 48 seats to the Republicans 32 seats - so Democrats need at least 6 Republicans votes there.  Last year the Assembly cobbled together a budget deal earlier, passing a budget in mid July and then left town, with the idea of forcing the Senate to accept it.  Senate Republicans and some Democrats balked at the Assembly budget plan - with Senate Republicans refusing until August 21 to vote for it. 

IMPACT ON BUDGET
* The action by Perata has major impact on the State budget process, because the recall election threatened to increase bitterness between Republicans and Democrats - especially in the State Senate, that likely would make any prospect for an early budget deal - already remote - nearly impossible. 

* State officials have warned that a budget stand-off like last years will cost the State dearly because of ongoing crisis not only of revenues, but of available cash to pay its bills.  Many community based organizations who provide supports and services to people with disabilities, seniors and others are worried about a budget delay and how they will stay afloat if the stalemate goes on and on.

* The budget deficit is already projected to be anywhere from $16 billion to $20 billion, with many advocates and some policymakers, believing that massive new spending cuts to health and human service programs will be likely when the Governor releases his budget revisions next week on May 14 (referred to as the "May Revise" or the "May Revision").

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