No Progress On Budget As Assembly Adjourns Until Sunday - Senate May Meet Friday

With the impasse on the budget continuing, the Assembly met briefly this morning without taking any action on the 2003-2004 budget and adjourned until Sunday, July 6, 4:00 PM to possibly consider voting on the Assembly Republican budget plan. That plan, originally presented in April, was revised and released on Monday by Assembly Republican Leader Dave Cox, and calls for additional massive cuts to education, health and human services and no tax increases, and other adjustments to close the $38 billion shortfall.  That plan has little chance of passage however - and it is not certain if the Assembly Democrats will bring up their own plan again for a vote on Sunday as well.

Meanwhile, Senate Democrats met privately early this morning to reportedly consider a possible rumored budget deal.  The meeting ended however without any announcement of a breakthrough.  The Senate itself did not hold a floor session today - and does not plan to meet again until Friday morning (July 4) to possibly consider action on the Senate Republican budget plan.  That plan is contained in a series of different amendments to the Senate Democratic budget plan - including additional major cuts to developmental services and other health and human services.  There appears no chance those amendments will pass at this point.

OTHER DEVELOPMENTS
* Lowered State Credit Rating - Standard and Poor's is prepared to drop the state's credit rating again.  State Treasurer Phil Angelides said the drop in the credit rating will cost the state over $400 million in extra interest costs for the bonds that voters already approved for schools, and parks, and loans.
* Medi-Cal Deficiency Bill (AB 1746). The Senate passed this bill on Monday, June 30, to cover the over $700 million shortfall in the Medi-Cal program budget for the year ending 6/30.  The appropriation will pay for services already made to Medi-Cal recipients by Medi-Cal providers. However the Assembly adjourned June 30 before taking action on the bill, and did not act on any legislation when it met for a few minutes this morning.  The bill could be voted on Sunday, July 6 when the Assembly meets again, to vote on the Assembly Republican budget proposal.  This bill is critical for Medi-Cal providers who provided services to recipients prior to the beginning of the new 2003-04 fiscal year. While the measure received enough Republican votes in the Senate, it might get tied up with the budget fight, even though most people from both parties accept the fact that the Medi-Cal providers will have to be paid.

BOTTOM LINE
* No budget in place - and no budget at least until when the Assembly comes back in session on Sunday.

WHAT CAN YOU DO
* There will be a UCP/California Community Advocacy Network Action Alert - statewide letter and phone call campaign - and district office visits that will be issued following the Assembly Floor session on Sunday. Please respond to that.