Summary of Senate Floor Remarks On Budget;
Burton Says Seniors, People with Disabilities, the Blind and Poor Were "Core Concerns"

As reported Sunday evening (7/27/03), the State Senate voted 27-10, to pass the compromise budget proposal (AB 1765) which avoided devastating cuts impacting people with developmental and other disabilities, that was put together by Senate President Pro Tem John Burton (D-San Francisco) and Senate Republican Leader Jim Brulte (R-Rancho Cucamonga).  With California now 27 days without a budget, the spending plan now heads to the State Assembly, where it will be taken up for a vote probably early this coming week.  This special addendum to the UCP Capitol Report #110-2003, gives the verbatim remarks made on the Senate Floor. Only four members spoke, since the outcome of the proposal was not a surprise.

REMARKS ON THE SENATE FLOOR REGARDING BUDGET PROPOSAL

Senate President Pro Tem John Burton (D-San Francisco):"This is the budget for the State of California - revenues and transfers of $72.8 billion, expenditures of $70.8 billion, which is $837 million less than the previous Senate version, which had made cuts in what was the current year of close to...$13 to $14 billion. There is something in here for almost everybody to hate. There are some things for some of us to like - on the Republican side, which  was clear from day one that they were absolutely opposed to doing anything for revenues to pay for deficit reduction bonds, not new programs, but deficit reduction bonds. We [Senate Democrats] were very concerned that this budget not be loaded on the backs of aged, blind and disabled and the single mothers with poor children. Both of us [Sen. Brulte and him], on those two issues, got our way. Everything else is fairly difficult - we were able to protect some children's programs. We were able to maintain some of the Medi-Cal optional benefits and Medi-Cal eligibility...We made serious cuts up and down the line in every conceivable program. We walked in this year with about...$38 billion in the hole. We go into next year with less money than what was in the Governor's May Revise, which was one of the conditions that the Republicans had as well as what the Governor wanted. This is not a budget to be proud of, except for the fact that the people of the state expect a budget to be passed. They expect bills to be paid and this does that. We could end up holding out for various small parts of what we want to achieve - each party. In the meantime, community colleges would not be funded, child care providers would not be funded, other people that provide very important services for the people of the State of California would not be funded. State employees would not be funded at their level. We would be looking a severe cuts to public safety, local government and the highway patrol. It was felt by a majority of our party [Senate Democrats], it was felt by the Republican leadership that it's important for us to do a job even if it's distasteful.  And this one is about as distasteful as any budget I have ever  been called to vote on....I ask my colleagues to vote for it because it's the best we can do.  We did protect our core concerns, which are the people without the help of the government, would find themselves literally out on the streets or starving.  It means the difference for old folks to be having tuna fish instead of cat food. It means a mother with children can at least try to provide for their kids. It means that these mothers who are trying to get off of CalWORKS and into the job market will still have programs made available to them. And I would strongly urge an aye vote on this budget that I know many of my Democratic colleagues if not all, are going to swallow hard, as I am, to vote for it. Part of our responsibility is to do that which is tough...This is a tough vote."

Sen. Tom McClintock (R-Thousand Oaks): "Three years ago when the 2000 budget passed the legislature with overwhelming majority, as I warned and I quote 'if lawmakers don't take a strong stand now to control spending, they are setting California up for some very harsh choices and hard times just around the corner.' Two years ago, when the 2001 budget was taken up in the Senate, I warned that the continued absence of structural reforms in the budget would ratify policies that were bankrupting our finances. Last year when the 2002 budget was taken up in the Senate, I warned that the budget set in motion events that would require the next legislature, to quote 'address a continued hemorrhage of red ink with fewer options and weakened economy' unquote. And today I tell you this: the budget now before us is a rotting porch just waiting to collapse. It rests on two decayed pillars that cannot stand. The illegal tripling of the car tax and the illegal borrowing of billions of dollars for on-going expenses with a vote of the people...This illegal action is now being challenged in court. And mark my words - the state will be ordered to refund this money, plus interest. If you pass a budget that spends this money, you will have blown a multi-billion hole in future budgets. The second rotting pillar of this porch is the borrowing of $13 billion for on-going state obligations, in direct violation of Article XVI of the State Constitution. It doesn't matter what general fund revenue streams you dedicate to its repayment. This is a general obligation of the State and general obligation debt cannot be used for on-going expenses and it must be submitted to the people and that is the State Constitution. We have already been placed on notice that this action will also be challenged in court and it too will collapse... Now I believe Sen. Brulte when he says that this is the best budget he feels he could negotiate, given the current membership of this legislature, and the current structure of our service delivery systems. But here's the problem: the current structure of our service delivery systems is completely shot. You got to change those systems. We can bridge the gap - but we'll have to be willing right now,  to close obsolete offices, eliminate agencies that have overlapping jurisdictions, decentralize service systems and restore local control over those systems...We can no longer delay prevailing wage reform, welfare reform, Medi-Cal reform and worker's compensation reform. And every time that I, and Sen. Brulte and others have made these proposals we've  been told year end and year out that there's no time and we just have to talk about them next year. Now I realize we are making some steps forward...and we're at least talking about some structural reforms. But I've heard promises of bureaucratic reform before and they all go away once the budget is passed. This might be best what the Legislature can do, but it is no where close to the best that can be done, and it is no where close to the best that needs to be done. So mark my words - this budget solves nothing. It sets in motion bigger deficits to come. The day that it is signed, will be the first day of the budget crisis of 2004."

Sen. Bruce McPherson (R-Santa Cruz):"There are so many things that I don't like about this budget, that I don't really want to talk about them, so I won't. But I am going to tell you a couple of reasons why I am going to vote for it tonight. Number one, is that it doesn't suspend Proposition 98 for our public education system. Number two, when one includes deficiency payments in this year's budget, the budget we are talking about tonight would actually spend less, as proposed. Number three, this budget contains no new general tax increases. Number four, this budget is better than anything that has come before us, it certainly is not perfect...But every day of delay is costing California millions of dollars and our bond rating has gone in the tank. Perhaps one side or the other could get alittle more if we waited alittle longer. But in the meantime, in light of our California Community Colleges, the child care system, and other agencies just about ready to fall apart if we don't do something very,  very soon,  we're going to see the collapse in some of the basic structure of what makes California makes. Those are four simple reasons, but that's why I am voting for the budget tonight."

Senate Republican Leader Jim Brulte (R-Rancho Cucamonga): "I rise to support this budget, not because I like it, in fact I don't. There's a lot in here that's very distasteful to me. I don't like the fact that Governor Davis proposed in May that we finance the deficit that was from last fiscal year, over five years. I don't like the fact that we are going to borrow money to do that over five years. I don't like the fact that this budget next year has a structural deficit of below $7.9 billion. But when the Governor in May provided us his budget, he proposed $8 billion in tax increases. He proposed to finance his deficit over 5 years with a sales tax increase, and he presented us a budget that has a structural deficit next year of $7.9 billion. Now, when you are in the minority, you not only have to fight the Legislature, you have to fight a Governor. The good news for Republicans is that this budget doesn't contain tax increases. We were able to kill the tax increases the Governor proposed.  We couldn't kill his car tax. We think he illegally tripled it. We're going to court. We think we are going to win on that. We were able to get the out year deficit [for 2004-05] below his [the Governor]. We did it not by borrowing money or raising the sales tax. We did it by getting additional reductions in the current year as well as the 04-05 budget year. So I'm going to vote for this budget because I actually think this is the best we can do. Let me say to my liberal friends, I know there are some of you who don't want to vote for this budget because you weren't able to force us to raise taxes. And I appreciate that fact. And I know there are people around this building who believe that if only John Burton and you all held out, you would get us to vote for tax increases. But we're never voting for tax increases. This budget was never going to pass with tax increases. Some of my conservative friends believed that if only we held out alittle bit longer, we could get you [Senate Democrats] to vote for some more spending reductions. I've known John Burton for 13 years now. And when earlier this week he said 'Enough! We're not cutting anymore spending!' I believed him. So this budget should pass tonight, because its a product that can get 27 votes. And I know the could-have, should-have, would-have crowd - people who don't know how to cobble together 27 votes, will have all the great theories about how this budget could have been better. Some of them will be on the Left, and some of them will be on the Right. Heck, we got a couple of guys in the Assembly [Assemblymen Canciamilla (D) and Richman (R)] who put their own budget together. They got two votes for it. Well, that's all right. 52 [votes] short over there. 27 [votes] short over here. We could put together a budget that our guys [Senate Republicans] could support. You put together a budget that you would support. But as long as the rules say it takes 27, it takes bi-partisan cooperation. I think this is the best that can be done...Mr. McClintock is right, this car tax is illegal, and if he should be elected Governor, I know that the first day in office, he's going to repeal it [laughter].  And Tom, I haven't decided who I'm  going to vote for governor, so I'm still available [more laughter]. So this is where we are today. There's some good things in here for Republicans. There are no tax increases. We got mid-year cut authority for the governor, so if he over spends in one area, he can cut some place else, rather than just overspending and then coming to us and telling us we have to pay for it. There is some structural reform - not enough...we did get Sen. McClintock's BRAC [Bureaucracy Realignment and Closure Commission in SB 9] program that we'll actually take a look at it. And we took some language from the Reason Foundation, to see if we can take a look at how government really operates and how we do our budgeting. Do I like this budget? Absolutely not. But I do not believe that a $38 billion deficit that was created over 3 years can be eliminated in one year. So Mr. McClintock is right, when this budget passes, and it will pass this floor tonight, if this budget is signed into law by the Governor, we need to come back, redouble our efforts because its time to take additional spending reductions, because that's what we're going to have to do to make next year's budget balanced. I ask for an aye vote."

Note: Sen. Burton, in closing, simply asked for an "aye vote" on the bill.

Votes in favor of the budget: (27, 23 Democrats and 4 Republicans)
Alpert (D), Ashburn (R), Bowen (D), Brulte (R), Burton (D), Cedillo (D), Chesbro (D), Ducheny (D), Dunn (D), Escutia (D), Figueroa (D), Florez (D), Johnson (R), Karnette (D), Knight (R), Kuehl (D), Machado (D), McPherson (R), Murray (D), Ortiz (D), Perata (D), Romero (D), Scott (D), Sher (D), Speier (D), Torlakson (D), Vincent (D)
Votes against the budget: (10, all Republicans)
Aanestad (R), Ackerman (R), Battin (R), Denham (R), Hollingsworth (R), Margett (R), McClintock (R), Morrow (R), Oller (R)
Absent or Not Voting: (3, all Democrats)
Alarcon (D), Soto (D), Vasconcellos (D)

LIST OF BUDGET AND BUDGET TRAILER BILLS PASSED BY SENATE
Note: The bolded italic bills are those impacting people with developmental or other disabilities. The bolded bill is the main budget bill.
AB 1765   2003-2004 Budget Bill (the actual budget bill)
AB 7X     CA Fiscal Recovery Act (bonds to cover deficit)
AB 1747   Natural Resources Omnibus Trailer Bill
AB 1748   Statutory language for implementation of Prop 50
AB 1749   Booking Fees (counties and local agencies)
AB 1750   Transportation Trailer Bill which partially suspends Prop 42
AB 1751   Transportation Trailer Bill - Prop 42 expenditures/repayments
AB 1752   Human Services Trailer inc SSI/SSP, Work Activity/Supported Employment
AB 1753   Transfer of Habilitation Program from Dept of Rehab to Dept of
          Developmental Services (effective 7/1/04)
AB 1754   Education Trailer Bill for K-12 and Higher Education
AB 1755   General Government/Redevelopment Property Tax Transfer
AB 1756   General Government Omnibus Trailer
AB 1757   Eliminates Office of Criminal Justice Planning and Technology, Trade
          and Commerce Agency effective 1/1/2004 transfers responsibilities
AB 1758   Trailer Bill - Dept of Corrections, Dept of Youth Authority
AB 1759   Trial Court Security, fees, etc.
AB 1761   2002 Budget Deficiency Bill ($70,774,000 for Dept of Corrections and
          $48,293,000 for Dept of Social Services (IHSS)
AB 1762   Health Trailer Bill inc Medi-Cal, Developmental Ser, Mental Health
AB 1763   Rural Health Demonstration Projects/to obtain 65% federal match for
          Prop 99 funds from unallocated account)
AB 1766   Transfer to replace suspension of local sales tax rate
AB 1768   Sets asides funds to repay the vehicle license fee "backfill"
SB 9      Bureaucracy Realignment and Closure Commission (BRAC)
SB 1082   Enacts pilot project for "Performance Budgeting" (Reason Foundation)

NEXT STEPS
The Senate budget deal as announced by Sen. Burton and Sen. Brulte on Thursday was a major breakthrough, with passage in the Senate Sunday a major step in ending the budget stalemate. See CA UCP Capitol Report 110-2003, July 27, for details on next steps in both houses and the Governor.

WHAT DOES THIS ALL MEAN
* California is now 28 days without a budget - and the impact of no budget is growing daily as more and more people who need programs and services and workers are affected, but it now seems likely the budget stalemate will end before the end of this month.

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)