CA: Budget deal frees governor, Democrats to seek election compromise

SACRAMENTO (AP) - After months of bickering and political recriminations, Gov. Arnold Schwarzenegger and legislative leaders put differences aside and forged a bipartisan compromise over the state budget.

Whether such comity can extend to negotiations over Schwarzenegger's proposed reform initiatives and the fall special election remains the looming challenge.

Recent polls show the public has lost confidence in Schwarzenegger and holds the Democrat-controlled Legislature in even lower regard than usual. The poor standing has prodded both sides to say they want a global agreement on the initiatives to avoid a bruising showdown in November.

"Everyone's willing to talk," Schwarzenegger spokesman Rob Stutzman said. "There's real momentum, and that indicates a good potential to negotiate."

The budget deal has caused the political dynamics to shift. By persuading Democrats to come his way on the $117 billion deal, observers say Schwarzenegger has reclaimed some of his stature as an effective leader.

"When you look at the budget overall, you can't describe it any other way than as a massive success for Gov. Arnold Schwarzenegger," said Kevin Gordon, an education lobbyist. "Given how low his polling numbers are, his success in negotiating this budget means that no one is ready to count this guy out."

Democratic lawmakers, meanwhile, showed they were willing to forfeit important points, such as $3 billion they believe schools are owed. That allows them to avoid the potential political liability of a protracted budget impasse.

"The fundamental question now is which strategy legislative Democrats are pursuing?" said Republican strategist Kevin Spillane. "Are they motivated by a desire to remove a potential budget impasse as a political liability, or is this the first step in reaching a global compromise with Schwarzenegger regarding the issues on the November ballot?"

Schwarzenegger has proposed measures that would implement a state spending cap, change the way legislative districts are drawn to make the seats more competitive and increase from two to five years the amount of time it would take teachers to get tenure.

A separate proposal, dubbed "paycheck protection" by its supporters, would force public employee unions to seek permission from members before using their dues for political purposes.

Democrats, who depend on labor's money and political muscle, have called the measure an all-out assault on their power and say the governor must disavow the measure for the rest of the reform measures to be negotiated. Schwarzenegger is almost certain to reject that request but could decide to remain neutral on the initiative, thus drying up most of its funding.

Negotiations on the measures are set to resume in earnest, with a mid-July deadline for ballot arguments to be delivered to the Secretary of State's office. Legislators' summer break also begins at the end of next week.

Democrats are pressing for alternatives to Schwarzenegger's most important initiatives.

The proposed spending cap would undo the state's minimum funding requirement for schools and give the governor unilateral power to cut spending. Democrats prefer mid-year budget corrections that provide a role for the Legislature.

Schwarzenegger's redistricting proposal would take the power of drawing legislative boundaries away from lawmakers and give the responsibility to a panel of retired judges. Democrats want to tie the changes to an easing of California's term limits law and to entertain the possibility of a giving redistricting power to a broader panel of citizens.

Complicating the process are interest groups on both sides who are moving forward with a high-stakes ballot fight.

Grover Norquist, who heads Americans for Tax Reform, a Washington, D.C.-based conservative nonprofit group, said passing the union dues measure in California would create nationwide momentum to defund organized labor.

And Gale Kaufman, who heads the Alliance for a Better California, a coalition of labor unions and other Democratic interest groups, said she had heard no indication that an acceptable "global deal" was imminent.

"To cut a deal, you have to win, and no one has shown us there's a win in a deal," Kaufman said. "Paycheck protection stays on the ballot, and I haven't heard of a spending cap that isn't onerous. Until that changes, I don't know what kind of deal it is."

The Nov. 8 special election will go on even if Schwarzenegger reaches a compromise with Democrats.

Interesting how this budget deal is being portrayed as a compromise in all the papers when, in reality, Arnold flat out kicked the Dem's asses. Tax increases were not even on the table, spending is flat and the teachers union got shafted.

Every day we hear about low approval ratings but apparently its all spin and BS. The Dems are scared to death of what's going to happen this Fall.

By persuading Democrats to come his way on the $117 billion deal, observers say Schwarzenegger has reclaimed some of his stature as an effective leader.

"When you look at the budget overall, you can't describe it any other way than as a massive success for Gov. Arnold Schwarzenegger," said Kevin Gordon, an education lobbyist. [Dem, I assume].

Less than 2 years ago, Arnold proposed his first budget at a staggering $99 Billion dollars. When everyone expected CUT, CUT, CUT, they got SPEND, SPEND, SPEND.

Now, the only way to look at this $117 Billion dollar spending monstrosity is a success for the dems, socialists, and big government (R) trojan horses.

He's locked in the highest spending ever and the spending reform measure, if passed, will ensure this level continues on.

BTW, did they release the final numbers? Adding up the things Arnold "compromised" on, I would expect it to be more than $117 Billion.

Is our budget built on paper money? Granted, the economy has made something of a recovery... and we're looking at an $18 billion increase in less than two years! I marvel we've set a new spending record. In the midst of our state's reputation for dysfunctional government, ever higher levels of spending is a feat our leaders can brag about. No ever discusses how government can live on less, than say it did in 1990.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

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