California Budget Crisis:

Bickering Between Governor and Legislature Grows Heated As Budget Deficit Swells to Nearly $15 Billion – Disability and Senior Advocates Fear More Proposals for Bigger and New Cuts in January As Fight To Stop Mid-Year Budget Cuts Continues In Budget Subcommittee Hearings

SACRAMENTO (CDCAN) - In response to Governor Arnold Schwarzenegger’s strong criticism of the Legislature’s stalemate on a solution to the growing state budget crisis Wednesday afternoon (December 10), Legislative Democratic leaders blamed the problems causing the delay on the Republican Governor and his inability to “convince even a few of his Republican colleagues to compromise”. Republican legislative leaders – who were the named target in some of the Governor’s remarks at a press conference earlier on Wednesday, responded back with some harsh words for both Schwarzenegger and Legislative Democrats.

Bickering Grows Heated As Budget Deficit Swells to Nearly $15 Billion

The bickering between the Governor and Legislature – and among both parties in the Legislature grew heated as the budget deficit grew from $11.2 billion earlier in November to nearly $15 billion. The latest figures, released during the press conference by the Governor, was more grim news that disability, mental health, and senior advocates fear will mean more proposals for bigger and new cuts to critical programs and services when the Governor releases his proposed 2009-2010 State budget on January 10th.

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In an effort to persuade the Governor and legislators to limit the impact of budget cuts and revenue increases against people with disabilities.  As funding gets cut on all the essential services allowing people to live independently, potential elimination of cost of living increases with the addition of new tax increases, the budget cuts disproportionately affect those with disabilities.  The California SCDD has made its position clear in saying that in past fiscal years, it is always health and human services that sustains the disproportionate amount of cuts compared to other services.

Attached to this post are PDF copies of letters delivered to legislators and the Governor:



There was a memo posted earlier regarding these cuts, but this is the more verbose message from Marty Omoto of the California Disability Community Action Network.

SACRAMENTO (CDCAN) - Two bills containing proposals by legislative Democrats to cut spending by $8.1 billion and raise new revenues also by $8.1 billion over 18 months, were defeated in the Assembly, failing to win any Republican votes. Both Democrats and Republicans in both houses remain far apart on how to solve the budget deficit. A bill to cut spending in the Assembly was defeated 40 to 30, falling 14 votes short of approval. And a bill to raise taxes and other revenues, failed to win approval by 41 to 31, falling 15 votes short. Democratic Assemblymember Nicole Parra of Hanford, who is termed out, voted against both bills, defying Assembly Speaker Karen Bass.

Assembly Speaker Karen Bass said if the Assembly Republicans would have given their votes for revenues, Assembly Democrats had been prepared to consider other spending cuts and even the idea of a spending cap. She urged members to put ideology aside and to put their futures “at risk” .and warned that doing nothing and that California was headed for a economic “train wreck”.

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On Tuesday the Governor threatened to veto any budget that did not plan for rainy-day funds for times of fiscal trouble. The Governor also said that if the legislature overrides the Governor’s veto of the budget (which is planned), he would veto more than 800 bills, which would effectively create the rainy-day fund.

Today, the Governor and top legislators reached a deal which would avoid the Governor’s planned veto of the budget thus circumventing the veto of over 800 bills scheduled to reach his desk once the budget passes. Instead of increasing tax withholdings from the paychecks of Californians, the increased penalties for corporations for late payment of taxes will raise the $1.6 billion for the rainy-day fund.

Though a deal was reached, much of the $15.2 billion short coming in California’s budget would be pushed into future years.

Read the whole LA Times article here: Schwarzenegger, top legislators reach a budget deal



BREAKING NEWS - BUDGET CRISIS DAY 76
* Legislative Leaders Reach Budget Deal
* Vote Could Come As Early As Monday
Budget Stand-off Could End This Week If Democratic and Republican Caucuses Support Their Leader’s Budget Deal
SACRAMENTO (CDCAN) - Democratic and Republican legislative leaders said today (Sunday, September 14) that they have reached a budget agreement that will end the three month stand-off - the worst in California history. No details are officially available, and the deal still needs the approval of the Democratic and Republican caucuses (members) in both the Senate and Assembly, but it seems almost certain now that the budget stand-off will end within days now.
As reported in the Friday CDCAN Report, the deal contains no income tax or sales tax increases, but also no borrowing from other funds or from local government to bridge the $15.2 billion gap and contains over $9 billion in spending cuts.
A vote on the budget plan could come as early as Monday (September 15th) or Tuesday (September 16th)
Senate President Pro Tem Don Perata (Democrat - Oakland) had initiated the discussions with Senate Republican Leader Dave Cogdill (Republican - Fresno). Assembly Speaker Karen Bass (Democrat - Los Angeles) was informed of the Senate budget plan, with the four leaders - Perata, Cogdill, Bass and Assembly Republican Leader Mike Villines meeting this weekend to look at the details of the Senate plan, as hammered out by budget staff.

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California Budget Crisis - Day 35

Disability & Senior Advocates Worry About Spending Caps On Critical Programs and Services - Budget Delay Impact Will Soon Hit Hard on Community-Based Services and Supports As Providers Go Without Any Payment from State

SACRAMENTO (CDCAN) - Governor Arnold Schwarzenegger proposed to legislative leaders on Sunday, a temporary sales tax increase of 1 cent that would raise about $5 billion per year to help close the State’s $15.2 billion budget gap in exchange for major budget reform proposals to control spending and new authority to cut spending in future years. The proposal calls for the State’s sale tax increase to be in place for 3 to 4 years, followed by a gradual decrease in that tax to a point below what it is now (7.25%).

California is now 35 days without a State budget.

The issues and debate on raising new revenues is critical because at stake - depending on which proposals to raise revenues are adopted - are billions of dollars in spending for programs and services that impact hundreds of thousands of children and adults with disabilities, mental health needs, low income seniors, and low income families.

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Crawford Signs