No action on California Budget: June 2003

CALIFORNIA UCP CAPITOL REPORT #86-2003
June 26, 2003 - Thursday afternoon

No Action On Budget In Either House Today; Republicans Will Offer Amendments to Budget Proposal in Senate; Chesbro Blasts GOP For Allegations That Democrats Blocked Process

With neither house voting on the budget today, Senate Republican Leader Jim Brulte (R-Rancho Cucamonga, 31st District) said today on the Senate Floor that his party would submit amendments to the proposed Senate Democratic budget proposal (AB 1769) within the next few days, that will make the plan acceptable to Senate Republicans. The Republican leader, said he expected that the Republican amendments will be allowed to be fully debated on the floor and not tabled by the Democrats. Brulte did not provide any specifics on what those amendments will contain.

The Senate Republican Leader said on the Senate Floor that "...we [Senate Republicans] will go to [Legislative] Counsel today with scores of amendments and hopefully you will let us debate those, next week or tomorrow or Saturday or Sunday or whenever you choose to bring us back here, because that is your choice. So we will do that, but under no circumstance will we allow you [Senate Democrats] to continue to perpetuate the mythology that we haven't made proposals, that we don't have recommendations, that we don't have plans. Our members go to the conference committee and get voted down - you reject our proposals. That doesn't mean we don't have them, it means you didn't like them. The Governor in December came to you with proposals to reduce state spending. Every one of the Republicans on the budget committeee....they voted for the reductions that the Governor proposed - none of you [Senate Democrats] did."

Brulte clearly was responding to constant Democratic charges that Republicans have not presented any real alternatives to balance the budget, with a shortfall projected at over $38 billion other than to oppose any tax increases. Senate Democrats have said on the floor that they will refuse to make any more cuts to programs and services, especially those impacting education, seniors, people with disabilities, and others that have already been reduced. Republicans refused to consider any tax increases, even the 1/2 cent temporary sales increase proposed by the Senate Democrats.

Earlier during the floor session, Sen. Wes Chesbro (D-Arcata, 2nd Senate District), chair of the Senate Budget and Fiscal Review Committee angrily blasted Republicans for allegations made earlier in the week that Democrats did not allow Republicans to make alternative budget proposals.
With his voice rising in anger, Chesbro said on the floor that "...I also want to respond to some comments, which I should have responded to immediately that have been made several times in the last few days as we discussed this budget, that somehow the Republicans in the [budget] subcommittee process and the conference committee have not had access to the process, that they been denied the ability to step forward with proposals. Nothing can be further from the truth. I take it as a personal affront, an affront to every budget subcommittee chair, and an affront to the conference committee chair that this allegation has been made. I challenge any of the [Republican] members of any of the subcommittees who think they were denied the ability to make proposals during our budget development process, to stand up on this floor now and tell us when and what proposal it was that they put forward that they were denied the ability to make, because it is not true...And it is with deep resentment I respond to those allegations. And on behalf of the chair of the conference committee [Assemblywoman Jenny Oropeza (D-Long Beach)], I want to say that there was a time and there was a day, during the committee process when she set on the agenda for the Senate and Assembly Republican caucuses to make their budget proposals. And both caucuses declined to take us up on that opportunity. So I just have to absolutely respond with outrage at the allegations. And I can say it has done nothing to help us solve this problem. The time has long gone, when we need specific proposals to solve this problem."

The Assembly met this afternoon after several days of Assembly Democrats holding town hall meetings in many areas of the state to garner support for tax increases as part of a budget proposal. Press reports from town hall meetings in rural more conservative parts of the state indicate that Assembly Democrats there received a tepid or even hostile reception.

Both houses adjourned and have scheduled floor sessions Friday to possibly consider budget proposals.

WHAT DOES THIS MEAN
* No budget yet - and as each day passes, it seems more likely now that there will not be a budget in place before July 1. Missing that date has serious consequences for the State, including loss of millions of dollars in higher interest rates to pay off loans needed by the state to stay afloat.
* Passage of a state budget requires 2/3rds vote from each house, meaning 54 votes in the 80 member Assembly, and 27 votes in the 40 member Senate. Democrats control 48 seats to 32 Republican seats in the Assembly - and need at least 6 Republicans there to pass a budget (assuming all Democrats support it). Democrats control 25 Senate seats, with the Republicans holding 15 - and there, Democrats need at least 2 Republican votes to pass a budget.

NEXT STEPS
* SENATE: The Senate is scheduled to meet Friday morning at 8:30 AM, though it is not certain if they will actually vote on the budget again. The Senate Republican amendments are likely to contain more cuts to programs, though exactly where and what is not known yet or what day they will be offered on the Senate Floor. The Democrats are likely to reject those amendments. Senate Republicans also offered today on the floor possible alternatives - which would not impact the 2003-2004 budget, to raise additional revenues, including selling off surplus state properties.
* ASSEMBLY: The Assembly is also scheduled to meet Friday, though it is not certain if they will take up proposals on the budget. It is possible that they may take up a version of the Senate Democratic budget plan (with some changes in spending cuts and restorations). The Assembly may also take up different plans offered recently by Assemblymembers Joe Canciamilla (D-Pittsburg, 11th Assembly District) and Keith Richman (R-Northridge, 38th Assembly District), and a plan proposed earlier by Assembly Republicans. Those two proposals don't have any chance of passage.
* BIG FIVE - this refers to the Governor, the Senate President Pro Tem (Democrat), the Senate Republican Leader, the Assembly Speaker (Democrat) and the Assembly Republican Leader. The Governor is reportedly out of the state - and no meetings of this group scheduled at this point (at least publicly). No meetings were held this past week and a meeting of the "Big Five" last week ended abruptly with Senate President Pro Tem John Burton reportedly leaving early in anger.
* BUDGET CONFERENCE COMMITTEE - has not met since proceedings were halted after its session on June 10, and now has all but disappeared as a continuing factor. However both houses - the Democrats at least - are using all or parts of the conference committee actions taken up to June 10th, as the basis of their budget proposals.

FOR MORE INFORMATION ABOUT THIS REPORT
* This is a report for Californians with developmental (& other disabilities), families, providers and other advocates, from the California Coalition of United Cerebral Palsy Associations, a link to the California Community Advocacy Network.
* If you would like to get on this distribution (and conversely, get off of it) please send an email with that request to: martyomoto@rcip.com. Sharing information is part of our organizing effort. Please feel free to forward or copy this (attribution is nice). We're all in this together!
Marty Omoto, advocate/brother of Alana, sister with developmental disabilities
CA Coalition of United Cerebral Palsy Associations
1225 8th Street Suite 480 Sacramento, CA 95814 916/446-0013 (NEW phone number!)
NEW fax number: 916/446-0026 email: martyomoto@rcip.com
Coalition Chair: Philip Ksarjian (UCP of Greater Sacramento)
Past Chair: Ron Cohen (UCP of LA, Ventura and Santa Barbara Counties)

CALIFORNIA UCP CAPITOL REPORT #83-2003
June 24, 2003 - Tuesday afternoon

"We're At An Impasse" Says Sen. Burton, As Senate Once Again Fails To Pass Democratic Budget Proposal - No Action Yet From Assembly

With the end of the current budget year now just five days away and the State on the brink of yet another fiscal crisis, the State Senate once again failed this morning (6/25) to pass the Senate Democratic budget proposal (AB 1769) and a related budget bill (AB 1766) on a strictly party-line vote, of 24-14. The Senate Democratic proposal was exactly the same proposal considered by the Senate yesterday and the outcome was expected.
The state constitution requires passage of the budget by 2/3rds of members of both houses (54 of the 80 member Assembly and 27 of the 40 member Senate).

Saying that "the clock is ticking - we want a budget that is on time, we want a budget that makes sense" Sen. Wes Chesbro (D-Arcata, 2nd District) urged the Senate to pass the Democratic proposed budget compromise.

Senate Republicans flatly refused to consider any tax increases as part of the budget proposal.

Senate President Pro Tem John Burton (D-San Francisco, 3rd District) said that "we are at an impasse. We are at an impasse." and challenged Senate Republicans to come up with specific amendments for the Senate Democratic spending plan. The San Francisco Democrat said that some Republicans indicated informally that there would be enough Republican votes to pass a suspension of the constitutional provision that guarantees a certain level of funding for education (as passed by Proposition 98). That suspension would presumably shift some funding from education to other areas of the budget instead of using proposed sales tax increase revenues.

Other Democrats said they "hated" the budget and the cuts made - but were willing to support it to pass a budget because cuts were balanced with a temporary sales tax increase. They charged that Senate Republicans needed to compromise on the issue of tax increases.

WHAT DOES THIS MEAN
* IMPASSE CONTINUES - Means there still is no budget for the state. With the Senate Democratic budget proposal once again falling 2 votes shy of the needed 2/3rds vote for passage, some additional compromises to the proposal will be needed. Advocates feel that the Senate Democratic proposed budget contained in AB 1769, presented by Sen. Chesbro, is the best proposal for people with developmental and other disabilities. That budget plan reduces many of the Governor's proposed cuts substantially - and restores many others, including Medi-Cal optional benefits, provider rates, reduces sharply the proposed reductions for regional center funding of community-based services for people with developmental disabilities.
* POSSIBLE COMPROMISES - With both parties digging in their heels on taxes and additional cuts, there are some possible compromise options in the Senate including a possibility of Senate Republicans agreeing to a suspension of Proposition 98, the constitutional provision that guarantees a certain level of funding for education - though Democratic support for such a move is not certain. Another option is the possibility of deferring or moving some expenditures into the next budget year as a temporary solution to bridge the budget shortfall without tax increases or additional spending cuts.

NEXT STEPS
SENATE:
* Sen. Jackie Speier (D-San Mateo) did not vote and has been absent from the floor due to the death of her father-in-law and is not expected to return to the floor until Monday, June 30. Sen. Bill Morrow (R-Oceanside, 38th District) was also not present again. The presence of the two members would not have changed the outcome.
* Democrats control the 40 member Senate by 25-15. Assuming all 25 Democrats continue to vote for the Democratic budget proposal, at least 2 Republican Senators will be needed to support it. After it passes - it then goes to the Assembly for consideration.
* Though the Senate Democrat's proposal failed passage once again, another vote will occur perhaps tomorrow and certainly on or before June 30.
* As previously reported, any budget compromise that has a chance of passage is likely to come out of the Senate. Still, the tension is mounting in both houses as the fiscal deadline approaches - and chances of passing a budget on time diminishing each day.
ASSEMBLY:
* Many of the Assembly Democratic members are still visiting different parts of the state in town hall meetings to drum up support for revenue increases and for the Assembly Democrat's proposed budget solutions to close the $38 billion projected budget shortfall.
* The 80 member Assembly is controlled by the Democrats 48-32. Assuming all 48 Democrats vote on the budget, at least 6 Republican votes would be needed to pass the budget.
* The Assembly is also planning on a vote on some version of the budget before June 30, though a break in the impasse there doesn't seem likely at this point.

WHAT YOU CAN DO
* Respond to UCP/California Community Advocacy Network Action Alert#30 for letter/phone campaign and district office "accountability visits" SUPPORT the budget proposal offered by Sen. Wes Chesbro in the Senate today, which protects and reduces cuts to health and human services critical to people with disabilities, seniors and others.
* Save the date AUGUST 15/16 for statewide unified action meeting in Sacramento (details to be announced by Friday)