Pérez memo: No negotiations until governor makes concessions

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Assembly Speaker John A. Pérez says Democrats should refuse to negotiate with Gov. Arnold Schwarzenegger until he backs away from his May budget proposal to severely slash state spending. Pérez made the declaration in a confidential memo sent to his members Thursday morning.

The memo, a copy of which was obtained by PolitiCal, said ‘it is critical that the Democrats hold firm and not engage in any negotiation until the governor shows signs of reciprocation.’

The memo accuses Schwarzenegger of marching ‘in lock step with the Republican Right Wing.’

Perhaps most tellingly, with exactly one week until the new fiscal year begins July 1, Pérez tells his caucus that, ‘to date, there has been no productive engagement on budget talks with the governor and the Republicans.’

The memo serves as a rallying call for an Assembly Democratic caucus that has largely tired of the dismal choices facing them to balance the budget -- deep cuts, borrowing and higher taxes. The Assembly’s budget proposal, centered on a complex borrowing scheme, would avoid cutting programs while raising corporate and oil taxes.

The memo also updates lawmakers on the ongoing talks between the Assembly and Senate Democrats, who have each produced differing budget plans. ‘We are working hard to find a way to meld’ the two, Pérez writes in the memo.

In another candid moment, Pérez acknowledges that both Democratic proposals still ‘require additional solutions, perhaps one-time solutions’ to balance the state’s books. Far harsher words are tossed at Schwarzenegger’s budget, which is variably called ‘unconstitutional’ and ‘not a realistic’ plan.

-- Shane Goldmacher in Sacramento