State budget update: Vacation plans canceled

Analysis from CSBA’s Governmental Relations Department

Well, the true indication that we may need to settle in for a long budget season is upon us: Assembly Speaker Fabian Núñez has cancelled his vacation plans. It is never a sign of speedy resolution when vacation plans are cancelled. Further, he has warned all members of the Assembly that they may need to stay within two hours of the Capitol until the budget is fully cooked.

This announcement comes on the heels of the first meeting of the “Big Five” earlier this week. News accounts have indicated that the meeting between Núñez, Minority Floor Leader Mike Villines, Senate President Pro Tem Don Perata, Minority Leader Dick Ackerman and Gov. Arnold Schwarzenegger ended without much being accomplished. Núñez and Villines later traded verbal jabs with each other during separate interviews with reporters.

The Republicans are seeking greater cuts—an estimated $2.2 billion—from the $104.4 billion budget approved by the Budget Conference Committee on June 30. They believe that these cuts need to be made to slow growth in programs; however, Democrats are balking at further cuts to social welfare programs. Further complicating matters are reports that revenues for June are down an additional $306 million from prior estimates, which puts the total revenues for the year down by $829 million.

According to news reports, Senate leader Perata views this as a dispute between Republicans in the Legislature and the Republican governor and believes that Schwarzenegger needs to step in to resolve it. However, occupants of the governor’s office view this as a dispute among legislators, who need to settle their own differences. All of this makes many believe that July 20, when the Legislature is scheduled to go on a month-long recess if a budget has been passed, will come and go and keep the Legislature close to Sacramento for the summer.

Meanwhile, Speaker Núñez is planning a floor vote on the budget the week of July 16-20, although at this point it is unclear what that budget proposal might be and how much, if any, it will deviate from the plan passed by the Conference Committee two weeks ago. Further, it is uncertain if there would be enough Assembly Republicans on board to send it to the Senate.

As we've observed in previous budget updates, in a political environment things can change rather quickly. So it is still important for local board members to remind their legislators how urgent it is that base programs for schools are funded before any programs are expanded or new programs are added. This includes—as a number one priority—full funding for the cost-of-living adjustment and restoring equalization funding for lower-funded districts. Please call your legislator and reaffirm this important principle.

You can confirm who your Assembly member and senator are and how to contact them here.