Assembly approves most of state budget, which now goes to governor

The state Assembly this afternoon approved all but two budget pieces, worth $1.1 billion, of a package that would nearly close the state’s deficit, as lawmakers rejected a plan to borrow transportation money from local governments and one to allow new oil drilling off the Santa Barbara coast.

A hitch over that and education legislation delayed the Assembly in completing its work after a grueling all-night session.

 The Senate approved the budget package shortly after 6 a.m. Assembly members ratified a plan to borrow nearly $2 billion from local government property taxes, to be repaid within three years.

But they declined to approve the bill that would have provided $1 billion a year for two years by borrowing local transportation funding. Legislative aides said the loss of that funding would mean the budget would have a smaller cash reserve.

Gov. Arnold Schwarzenegger may also use his line item veto power to make additional cuts to make up for it. The rejection of the oil bill will mean the budget is an additional $100 million short. It was unclear how the money would be made up.

The governor, who is expected to address reporters after the Assembly finishes voting, will not make a decision on signing the budget bills before early next week because his office must review them, aides said. By 6:30 a.m., the Senate had moved in a slow and painstaking fashion through about 30 separate pieces of legislation in the package to close the historic budget shortfall that has forced the state to send IOUs to residents and businesses.

At one point before dawn, it appeared the budget package was in danger of failure, as legislative leaders struggled for votes on all of the provisions to raid local government funding. But after some arm-twisting by Senate Leader Darrell Steinberg (D-Sacramento) and Minority Leader Dennis Hollingsworth (R-Murrieta), a number of lawmakers from both parties voted for those provisions and the Senate was able to finish its work.

 “We don’t know whether or not we will be back at this,” Steinberg told his colleagues, looking visibly relieved. “We probably will, but I must tell you, we can change California…. We can find common ground more often than not…. Let’s turn this place around.”

-- Michael Rothfeld and Patrick McGreevy in Sacramento

Comments

[meeky]

I still don't know why they don't agree to those cigarette, alcohol, and gas taxes. That's like 7 or 8 billion dollars right there. People will still buy those things.

To even consider cutting on education and then allow for more drilling off our coasts are two of the dumbest ideas I have ever heard of. Yeah, let's make our state's children dumber and make our coasts dirtier ... we'll save money which we all know is the most important thing ever. Idiots.

[deb]

Another nail in the coffin of the working poor, seniors, disabled and children. They could have raised sales tax by a nickel & tripled my auto registration & I would have been better off in the long run. But this budget will cost me an additional $250 a month in lost income on top of the $180 a month that was cut 5 months ago. So I will not be spending on anything except necessities & I'll drop my health insurance. Bankruptcy will probably follow. What will they do when this budget goes bust in October? Is there an active brain cell anywhere in Sacramento?

[SB123]

Well, I guess we'll all have to suffer until the Boomers die off - you know, the ones who are still mentally ill over an oil accident off the SB coast back when, 1969???

Unbelievable that a portion of the population can hold the others hostage including 14000 teachers laid off because there's no money in the State to support quality education. Selling oil leases would provide needed funds to support not only that, but maybe by now we would have 100 percent State-funded healthcare....but noooo! We are the laughing stock of the rest of the nation because we have this high-end resource but refuse to use it!

Nope, the Boomers, the ones who cannot understand tech or how to use a cell-phone. They can't understand that the world and tachnology has MOVED ON and 1969 was FORTY years ago.

Good grief.

[Kitty]

I agree cigarettes and alcohol should be taxed heavily. There is also scope in increasing gas tax. Use of carpool lanes and public parks are other avenues to be explored.

[Dick Diamond]

Taking any money from municipalities without their permission is not "borrowing." It's theft. A relationship which is about borrowing is when one party asks another to lend them "something." The party asked can say yes or no. If they say yes, that's borrowing. Taking without permission is theft.
How would California like it if the feds took money from them without permission? Oops, wait. They already do.

[texmln]

Meeky,

California's kids can't get much dumber according to national education rankings - California is pretty much at the bottom even though it spends more money per pupil than most states. Start cutting. You're raising a bunch of future ditch diggers anyway.

Please, feel free to shoot down drilling off the coast too. It just means more rigs for us in Texas - and more jobs and tax dollars. We'll sell you all the oil you need at a very reasonable price... and a small profit for us.

Oh, and please make sure you DO NOT move here for a job. We have enough California clowns running around already and look what y'all did to your state. The more of you that stay put, the better for us. Besides, we WORK for living here. We don't spend all day in dreamland.

[tarwater]

Yes, we should not explore and extract oil from the Santa Barbara Channel. And one very dark morning we will awaken to global petroleum depletion and it will be hasty pudding to explore and extract. Why, it is almost as if we humans have no capacity to conceptualize a world short of oil

[Enook Ray]

Regulating marijuana would generate more revenue. Oh, I forgot. They want to tax us so they can keep the DEA in operation. Legalizaing marijuana would make it necessary to scale down the DEA, meaning we would have to pay less taxes. They don't want that, do they?

[Joe]

I agree with you meeky. California is going down the hole.

[jarrett]

I am appalled at the cuts to our educational system. I have worked with students in low performing schools for the past 5 years in California and have been attending college on the side, planning to transfer into a state college. Now, because of the budget cuts state colleges are no longer accepting upper level transfers. Because of the budget cuts to our educational system, my plan to become a teacher is jeopardized. All of my experience working to improve our educational system may be lost because I can not get my degree or credentials. My own education has been discontinued by the vary state I have been serving for 5 years.

[thecanimalshusband]

What about the children?

[MontyMoose]

Since we will have a new budget debate in less than a year, and since revenues are declining what is the thought about next year or is this just a revolving door policy...
This new budget draconian as it is, will not give us a surplus and I dont not think the cost of running the states programs will decrease..
For those who say lets solve one problem at a time ..that is what helped lead us into the current problems...
California is insolvent... as so it seems is much of the country,
IS THERE ANY LEADER (S) who will take charge face the problems put problem solvers into positions of authority and get California back on a solid financial footing??

[Nate]

Have you ever SEEN the coasts near Coal Oil Point? They are called that for a reason! The EPA estimates that 50,000 BARRELS of oil leak out EVERY YEAR from natural seeps under the ocean. The only way to stop this environmental disaster committed by Mother Nature herself is to drill!

[Eats]

I think the reality of the situation is presented quite well here: http://california.eatspoop.com/

Sometimes a succinct explanation does the trick!

[joeyd]

If people's lives weren't in the balance I'd say this whole debacle is the funniest thing ever. It's just about the best example of government run amok with spending I've seen. I shudder to think maybe the federal government will get this bad one day. Then again, we voted for these tax a lot and spend even more politicians. Maybe we deserve it.

"[A democracy] ...can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits the public treasury with the result that a democracy always collapses over lousy fiscal policy..." -Alexander Fraser Tyler

[Steve]

I hate to see education cut, but what do you expect from a liberal minded gutter of a state we call california. Wake up........ It doesn't take a rocket scientist to understand why we are in this mess.... If you wanted to run your own business, why would you do it in California???? So you can pay the highest business taxes and compensations, be overly environmentally regulated which cause higher expenses, fines and fees..... No wonder businesses, the wealthy, and the retiree's are packing up their bags and heading out, along with all those valuable jobs and state economic stimulus. I about lost my mind when I heard these crazy lib's in S.F. wanted to legalize marijuana, but they refuse to let the state drill for oil off the rich oil coastline of California. So let me get this straight.... It's not ok to drill oil because it maybe environmentally unsafe, although technology in drilling for oil has vastly approved and currently states such as Texas and Louisiana are drilling oil and have been for sometime, but it is ok to smoke a joint with a couple of friends on the weekend and if I loose some brain cells while doing so, its no problem......

[Insulted]

When kindergarten teachers are making over $90,000 a year and there's about four administrators for every ten kids, there's a reason why education is a problem here. The schools can't even add, subtract, or learn to budget.

Although I do not smoke, I believe the extra money should come from the parents who take the child tax deductions instead of continually expecting everybody else to pay for their kids. Grow up and own up to your responsibilities and live within your means.