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State Budget Update: 

Short but not Sweet

by Mona Field, Professor of Political Science  

There is no good news about our state's fiscal crisis.  We know the damage it has already done to our students.  And this is just the start.

  When tax revenues are counted, and the May revision comes in (approximately May 15), the reality of our situation may actually be worse than it appeared in the Governor's original budget in January.

  We are told that the Department of Finance is "praying"— does that give you any reassurance about the revenue projections they developed last fall?

  So, get ready for a long, hot, contentious, partisan summer in Sacramento.  The Democrats are ready to pass a budget with a combination of tax increases and cuts.  The Republicans want no tax increases.  Democrats are short of the 2/3 vote needed by six votes in the Assembly and two votes in the State Senate.  In other words, if a total of eight Republicans remain unwilling to compromise,  it's gridlock for our state.

  The official deadline for the budget (including, naturally, our college's apportionments and the final word on student fees) is June 15 for the Legislature and June 30 for the Governor.  But the betting pool in Sacramento indicates that folks inside the system think that it won't be completed until late fall.

  The folks in the pool are the hardworking  civil servants and political staff who keep the legislature functioning, all of whom are going to miss a lot of paychecks if the state has no budget for the July 1 start of the fiscal year.

  I am sure it's no surprise that the elected officials themselves get paychecks even if the state budget is months late.

  We can do something about the state budget mess.  It won't fix this year's delayed budget, and it won't solve the financial problems of our state, but it will keep the partisan bickering and dithering way down in future years.

   The answer:  A ballot initiative supported by our union, California Federation of Teachers, the larger labor movement, the League of Women Voters and many other groups who want good government.  The measure will have begun circulating for signatures by the time you read this.

  If enough signatures are gathered and validated, the measure will be on the March 2004 ballot.  It would do the following to prevent the kinds of budget messes we have today:

¾      Penalize lawmakers for not meeting their constitutional deadlines by taking away their pay and per diems until a budget is passed.

¾      Change the requirement for the Legislature from 2/3 to 55 percent for budget passage.  Note:  only two other states have a 2/3 requirement for a state budget to pass out of the legislature.

  It's about time the people of California got a legislature that can create a budget in a timely manner without collapsing under the weight of Republican vs Democrat ideological gameplaying.

       Watch for more news on the Budget Accountability Act of 2004. And perhaps folks will want to join the Department of Finance in their prayers for an improved revenue flow to our state coffers! &

 

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