Posted on 07/26/2004 6:31:15 PM PDT by concentric circles
Democratic lawmakers and Gov. Arnold Schwarzenegger have reached key compromises on a budget deal, signaling a possible end to a 26-day deadlock that proved to be one area where the new governor's exuberance and charm has failed to deliver a swift victory.
Although officials close to the negotiations say the final deal has not been completed, state Assembly members have been called and told to return to the Capitol on Tuesday for a possible vote on the budget Wednesday. A number of lawmakers in Boston for the Democratic National Convention have been told to return and are preparing to do so.
Senate Republican leader Dick Ackerman said he was optimistic a final deal would be reached.
``There are still some points that need to be resolved but we are hopeful,'' Ackerman said.
If the deal holds, it will end a bumpy period in Schwarzenegger's first year and smooth a rift that widened after the Republican governor ridiculed Democrats as ``girlie men.'' Schwarzenegger entered office promising to usher in a new era of cooperation at the Capitol and produce an on-time budget. The state has met its July 1 budget deadline only twice in the last decade.
Under the deal, officials said Schwarzenegger and GOP lawmakers dropped their ambition to revise a 2002 law that largely prohibits schools from hiring private bus, janitorial and landscaping companies. Republicans said removing the restrictions would save hundreds of millions of dollars for textbooks and education services.
But Republicans secured an agreement to change a law signed during the last days of Gov. Gray Davis' administration last year that allows workers to sue their employers over labor code violations, according to Ackerman and Democratic Sen. Joe Dunn.
The two sides also have agreed on reforming local government financing, although city mayors and county supervisors have not yet signed off on the proposed settlement, Ackerman said.
For Republicans, the budget imposes no new taxes and may bring future savings through changes in the way the state does business.
Democrats got Schwarzenegger to back away from deep cuts to health and welfare programs by using billions of dollars in loans and one-time savings to close a spending gap estimated in January at $17 billion.
Although Republicans are giving up ground on the school contractors issue, they received concessions from Democrats on the so-called ``sue your boss'' law, which business interests said spurred worthless lawsuits.
After a sometimes bitter three-week delay, California legislators appeared on Monday to have reached a deal with Gov. Arnold Schwarzenegger on a $103 billion budget, officials said.
"There could well be a deal today," State Senate President Pro Tempore John Burton, a Democrat, told Reuters. "I would not put my children and my grandchildren's life on it, but I'd probably put $5,000 on it."
An evening meeting is planned to discuss the new budget. Negotiations had stalled earlier this month, with an angry Republican Schwarzenegger calling Democrats "girlie men" for not backing his spending plan and for not meeting the July 1 deadline.
As in most recent years, California's legislature has not delivered a new fiscal year budget by the deadline. Schwarzenegger, who had vowed to end business as usual in Sacramento during his election campaign last year, had promised to meet the July 1 date for a new spending plan.
Negotiations had stalled over funding to local governments, which Burton said had now been resolved with an agreement requiring a two-thirds legislature vote to suspend the deal in the future or change how much the state government gets in local taxes.
"The local government thing was agreed to with two-thirds votes on suspension (of the deal) and constitutional protection of the sales tax and two-thirds vote to reallocate property tax," said Burton, who appeared relaxed as he sat at an outdoor cafe near the capitol on a hot sunny day. "These are the elements of the local government agreement."
EVENING MEETING PLANNED
Schwarzenegger was due to meet Democratic and Republican leaders of the State Senate and Assembly to go over the deal on Monday evening, his office said.
California Democratic legislators who had traveled to Boston for the Democratic Party presidential nomination were being asked to return to Sacramento by Tuesday, a legislative aide in the speaker's office added.
It would probably take a day or two beyond that for legislators to vote on a budget, which would have to be printed, distributed and read before passage, officials said.
Republicans and Democrats were also divided over the issues of what services public schools can outsource and a law that expands the rights of workers to sue their employers.
Senate Republican leader Dick Ackerman said legislators had worked out an agreement that would change legislation on workplace lawsuits passed last year.
"There was give and take from both sides that resulted in a fair compromise that will deter the filing of frivolous lawsuits under this act," Ackerman said in a statement.
Earlier, the state's chief financial officer said without a budget California would be unable to make half a billion dollars of state payments starting Wednesday because of the budget impasse but should avoid any further Wall Street downgrades.
"I don't anticipate any downgrade or changes in the bonds," State Controller Steve Westly told a news conference. "California's economy is still fundamentally robust."
"Revenues to the state are up ten percent over last year. That is a great piece of news, frankly, for any company or any state government."
It looks like Ahnold's "girly-man comments" have had it's intended effect.
All they have done is buy some time,, yet allowed all the social program spending instituted the last few years to stay in place, illegals still get benefits and may get Driver's Licenses as well..
Some progress.. we'll see.
Democrats got Schwarzenegger to back away from deep cuts to health and welfare programs by using billions of dollars in loans and one-time savings to close a spending gap estimated in January at $17 billion.
If this passes, the stage is set for a real nasty turn of events if the economy does not turn around or if the spending express is not derailed.. or both..
And all the while , the sheep are getting ready to get fleeced again.. and don't even know it.
Things change, Things stay the same.
I heard the call on the radio "All girlymen return to California"
LA County is still putting the sales tax increase on the ballot. They haven't stopped spending anything.
Ick. At least we get to vote on it. Sheriff Lee Baca will have a hard time getting two thirds of the electorate to vote for it. Especially when they haven't tried to find the money elsewhere by rooting out fraud, waste and abuse in the Sheriff's Department and by shifting money from useless social programs to law enforcement. Its all a matter of priorities.
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