Budget Issues Remain

June 19, 2012

TO:     CLA MEMBERS/ SYSTEMS/ NETWORK CONTACTS

FROM:   Mike Dillon, CLA Lobbyist
Christina DiCaro, CLA Lobbyist

RE:     News From The Capitol

BUDGET ISSUES REMAIN – VOTES UNLIKELY THIS WEEK

While the State Budget and a few related Budget trailer bills were passed by the legislature last Friday, (during a relatively brief session in both houses), in order to comply with the June 15th deadline, many big issues remain unresolved.  The Governor has 12 days from June 15th to sign or veto the Budget bill and the 6 corresponding “trailer bills” sent to him that day.
However, as has been reported in the press, there is still a significant division between the Senate President pro Tem, the Assembly Speaker, and the Governor on several major issues related to the Budget – most specifically but not limited to, cuts to CalWORKS, state employee furloughs, and the so-called Redevelopment money “pass-throughs.”  The Budget bill, SB 1464, “scores” $250 million in “pass-through” revenues to schools, thereby offsetting a like amount of state dollars.  However, the Governor’s office is strongly opposed to this action, as are local government and education groups.

Remarkably, there are still 22 Budget trailer bills on the Senate Budget Committee agenda that have yet to be acted on.  Whether they are all needed or not is open to question, but we have received indications that a large majority of those trailer bills, in significant subject areas, such as education, resources, high speed rail, and others, will still need to be debated and sent to the Governor.  We are hearing that there are still differences of more than $800 million that will need to be resolved between the Democrat leaders and the Governor before an agreed upon “deal” will be
declared.   Likely, because of the differences that remain, there will likely
be no further action on the Budget-related items until next week.

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