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REMEMBERING LIFE AND WORK
OF JOAN LEE
BREAKING NEWS - BUDGET CRISIS DAY 76
* Legislative Leaders Reach Budget Deal
* Vote Could Come As Early As Monday
Budget Stand-off Could End This Week If Democratic and
Republican Caucuses Support Their Leader's Budget Deal
SACRAMENTO (CDCAN) - Democratic and Republican legislative
leaders said today (Sunday, September 14) that they have reached a
budget agreement that will end the three month stand-off - the worst
in California history. No details are officially available, and
the deal still needs the approval of the Democratic and Republican
caucuses (members) in both the Senate and Assembly, but it seems
almost certain now that the budget stand-off will end within days now.
As reported in the Friday CDCAN Report, the deal contains no income
tax or sales tax increases, but also no borrowing from other funds
or from local government to bridge the $15.2 billion gap and
contains over $9 billion in spending cuts.
A vote on the budget plan could come as early as Monday (September
15th) or Tuesday (September 16th)
Senate President Pro Tem Don Perata (Democrat - Oakland) had initiated
the discussions with Senate Republican Leader Dave Cogdill (Republican
- Fresno). Assembly Speaker Karen Bass (Democrat - Los Angeles)
was informed of the Senate budget plan, with the four leaders -
Perata, Cogdill, Bass and Assembly Republican Leader Mike Villines meeting this
weekend to look at the details of the Senate plan, as hammered
out by budget staff.
No Details on Budget Agreement Yet
There is no detailed plan available yet, though Assembly and Senate Democratic
and Republican leaders have agreed to the following:
* Taxes - no income tax increases as proposed previously by Assembly
and Senate Democrats, and no sales tax increases, proposed by the
Governor.
* Borrowing - no borrowing from funds, as proposed earlier by Senate
Republicans
* New Revenues - the revised Senate budget plan relies on several one
time measures, requiring a simple majority vote, to raise revenues,
that could include higher tax amnesty, accelerated (earlier)
withholding for high income earners and other measures similar
measures to bridge the $15.2 billion gap, along with the cuts
previously approved in June by the Budget Conference Committee,
controlled by Democrats.
* Spending Cuts - Over $9 billion in cuts that include, in addition to
the cuts previously approved by the Budget Conference Committee,
spending cuts that were in the Governor's revised August budget
compromise, as revised further by Senate Democrats, are likely to be
part of the new revised Senate budget plan - though no details are
available. The massive cuts proposed by Senate Republicans -
previously rejected by Democrats in both houses when first proposed by
the Governor in January and May, are not likely to be part of the
revised Senate budget plan. However no details are available.
* Budget Reforms - a package of reforms proposed in January
by the Governor, and again this month by Senate Republicans, the
revised budget plan will not have any State constitutional spending
caps - something strongly opposed by legislative Democrats.
The agreement does however contain some of the budget reforms that the
Governor pushed for, including increasing the "rainy day"
reserve fund. The agreement also gives the governor some limited
authority regarding making mid-year budget reductions - though no
details are available.
* Deficit Next Year - The budget deal will assume that the budget
crisis will continue into next year - with the budget containing at
least a $2 billion deficit.
Budget Actions To Date
09/09/08 - Assembly voted on the Senate Republican budget proposal,
which, as expected, failed to pass 27 to 45. No Democrats supported
the proposal.
09/08/09 - State Senate voted on the Senate Republican budget
proposal, and as expected, rejected it 13 to 21. No Senate Democrats
supported the proposal, and 2 Senate Republicans (Roy Asburn and Abel
Maldonaldo) abstained.
09/03/09 - Assembly Budget Committee holds hearing on the Senate
Republican budget proposal, with a focus on its impact on education
funding. No vote was taken, though many people provided public
comments in opposition to the proposed reductions and cuts to health
and human services, including In-Home Supportive Services (IHSS)
08/29/08 - State Senate took up the Governor's budget proposal that he
released August 20th, that was significantly revised by
Senate Democrats. The Governor's proposal accepted the budget
proposal as passed by the Budget Conference Committee, controlled by
the Democrats in late June with some major changes. The
Governor's plan had additional cuts and a proposed sales tax increase
(instead of income tax increases) that would have been permanently
reduced to a level lower than what it is today after three years.
Senate Democrats revised the Governor's proposal by eliminating some
of the cuts, going for the temporary sales tax increase, but
eliminating the part of the proposal that would have permanently
reduced it lower than what it is now after 3 years. No Senate
Republicans voted for the proposal.
08/17/08 - The first time an actual budget plan was officially
voted on in either house, 48 days late into the new budget year.
The Assembly voted on the budget proposal that came out of the
Budget Conference Committee controlled by the Democrats. That
budget plan contained proposed tax increases and other new revenues.
That budget plan fell 9 votes short of passage, and as
expected, failed to pass. It received no Republican votes.
Impact of the Budget Delay On People With Disabilities, Mental
Health Needs, Seniors
The issue of the impact of the budget delay on people with
disabilities, seniors, people with mental health needs, children
and others was the subject of a special CDCAN Townhall
Telemeeting that was held Monday, September 8th, drawing over
650 people across the State. Many were deeply concerned
and worried about the continued stand-off and the potential or
actual loss of services and supports. A audio recording of
the entire townhall will be posted on the CDCAN website at
www.cdcan.us
State officials with the California Health and Human Services
Agency, including the Department of Developmental Services,
which oversees the 21 non-profit regional centers and 7 state
operated and owned health facilities, including 5 developmental
centers, have been working to monitor and work to allocate any
available funding that can be made available.
READ
LATEST MARTY OMOTO COMMENTARY "TROPIC THUNDER: WORDS IN MOVIES
MATTER, BUT WORDS AND ACTION IN SACRAMENTO MATTER TOO" -
available on the CDCAN website at www.cdcan.us
DISABILITY
RIGHTS NEWS REPORT