State Budget Update: Budget Deadline Passes As Legislators Continue To Assess ProposalsJune 21, 2010 |
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 For the 23rd time since 1986, California lawmakers failed to meet the constitutional deadline (June 15) for submitting a balanced budget. Some observers have predicted a possible budget deal by July. But others have noted that some legislators may be leery of voting for cuts or taxes before November elections, making compromise and concessions - a prerequisite for arriving at a two-thirds vote requirement to pass a budget - more complicated. During the last election year in 2008, state leaders were 93 days late in passing a budget -- the tardiest in state history. Adding even more pressure to legislators is the loss of an estimated $1.8 billion in federal aid for California. Last week, the U.S. Senate voted down a $140 billion relief package for ailing states due to concerns over the federal deficit. A similar bill has already been rejected by the House of Representatives. The state Assembly and Senate's budget proposals, as well as the governor's, are under consideration by the Budget Conference Committee, however, all the proposals rely on the anticipated federal aid, which could have reduced California's deficit by as much as 10 percent. More fuel was added to the budget bonfire in the form of a letter to state leaders from State Controller John Chiang, who warned of the consequences of not having a budget in place by July 1. "At a time when the economy is showing signs of recovery we can ill-afford the ‘business as usual' approach of requiring the state to be driven to the brink of a fiscal meltdown before compromise is achieved," Chiang said. Meanwhile, conference committee members met early last week to review proposed cuts to CalWORKs and state child care programs. During the meeting, the Legislative Analyst's Office presented its Options for Generating Savings in Child Care Budget, which included reducing regional market rates for child care providers and increasing parent fees. Tim Fitzharris of the Child Development Policy Institute provides a response to each of the proposals in a June 12 CDPI Information Bulletin. Legislators have left the items open for consideration at a later date. |
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