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Possible California Budget Deal in State Senate
California Progress Report ^ | September 13, 2008 | Marty D. Omoto

Posted on 09/13/2008 4:52:49 PM PDT by concentric circles

Senate Democrats Working With Republicans Toward Budget Agreement Though No Final Deal Yet - No Tax Increases, Borrowing or Spending Cap Will Be In Plan

With the California budget crisis continuing into its 74th day without a State budget, a possible budget deal is coming together in the State Senate, with Senate Democratic and Republican leaders agreeing on the broad outlines that could mean a budget agreement and a vote on a revised budget plan next week, possibly as early as Tuesday (September 16th). No details are available and nothing is final - and the situation is fluid and could change. However the movement toward a deal in the State Senate appears to be real.

Senate President Pro Tem Don Perata (Democrat - Oakland) initiated the discussions with Senate Republican Leader Dave Cogdill (Republican - Fresno). Assembly Speaker Karen Bass (Democrat - Los Angeles) was informed of the Senate budget plan, with the four leaders - Perata, Cogdill, Bass and Assembly Republican Leader Mike Villines scheduled to meet on Sunday to look at the details of the Senate plan, as hammered out by Senate staff.

There is no detailed plan available yet, though Senate Democratic and Republican leaders have agreed to the following:

• Taxes - no income tax increases as proposed previously by Assembly and Senate Democrats, and no sales tax increases, proposed by the Governor.

• Borrowing - no borrowing from funds, as proposed earlier by Senate Republicans.

• New Revenues - the revised Senate budget plan is likely to rely on several one time measures, requiring a simple majority vote, to raise revenues, that could include higher tax amnesty, accelerated (earlier) withholding for high income earners and other measures similar measures to bridge the $15.2 billion gap, along with the cuts previously approved in June by the Budget Conference Committee, controlled by Democrats.

• Spending Cuts - In addition to the cuts previously approved by the Budget Conference Committee, spending cuts that were in the Governor's revised August budget compromise, as revised further by Senate Democrats, are likely to be part of the new revised Senate budget plan - though no details are available. The massive cuts proposed by Senate Republicans - previously rejected by Democrats in both houses when first proposed by the Governor in January and May, are not likely to be part of the revised Senate budget plan.

• Spending Cap - proposed in January by the Governor, and again this month by Senate Republicans, the revised Senate budget plan will not have any State constitutional spending caps - something strongly opposed by legislative Democrats.

The budget stand-off is the longest in California history as it continues into its third month, with neither the Assembly or State Senate meeting Friday, and no floor sessions scheduled for the weekend or for Monday.

A Senate floor session on the budget scheduled for Friday (September 12th) at noon was cancelled late Thursday afternoon.

However it is possible, with the new developments toward a possible budget deal, that the State Senate will hold a floor session on Tuesday for a possible vote on the budget, followed by the Assembly either the same day or the next day. A session to vote on the budget could happen Monday - though at this point appears unlikely as no agreement has been reached, and details have yet to be hammered out and agreed on by staff and legislative leaders.

It is expected the staff work on hammering out details - and approval by the four legislative leaders - will continue through the weekend, with, as reported, a Sunday morning meeting with the four legislative leaders - and continued work on details Monday (September 15).


TOPICS: Extended News; News/Current Events; Politics/Elections; US: California
KEYWORDS: california; californiabudget; perata; schwarzenegger
On the whole this is positive, though it will involve some of the usual shifting of funds, accounting magic, and prayers for economic growth with increasing revenue. In addition there will be no spending cap.

The L.A. Times, which tried to take down Free Republic, reports on an email from Senate President Perata to his senate minions. Perata canceled a session which had been scheduled to discuss Schwarzenegger's plan to "temporarily" increase the sales tax in return for a future tax cut as well as a constitutional spending cap which would have required voter approval.

Perata wrote, "I saw no point in going to the floor only to prove what we all know: Reps won't go on a tax."

"The gov still insists on a budget reform amendment as a condition of his signature. We'll see. As of yesterday morning, he was back to his most draconian version, which is not acceptable."

They report on talk about taking money from public works projects that aren't near a startup and "repaying" it down the road. There is also discussion about stealing money from tax payers by increasing withholding and repaying it after returns are filed.

Barbara O'Connor of the Institute for the Study of Politics and the Media at Cal State Sacramento is quoted, "It would make the public hate them even more. Not that they have far to go."

You just read the meat of the story from the Times, you don't have to go to the link.

1 posted on 09/13/2008 4:52:51 PM PDT by concentric circles
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To: concentric circles

Deck chairs. Titanic. You get my drift.


2 posted on 09/13/2008 5:12:55 PM PDT by Extremely Extreme Extremist
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To: Extremely Extreme Extremist
PLEASE CALL GOVERNOR SCHWARZENEGGER'S OFFICE POLL AND MAKE YOUR VOICE HEARD:
The number to call is: 1 916-445-2841


Takes less than 30 seconds.


It is just a recording:
Press 1 for English
Press 2 to voice an opinion
Press 1 for AB 2567 - Gay Harvey Milk Day
Pressing 2 is a NO vote.

3 posted on 09/13/2008 5:17:00 PM PDT by Fred (The Democrat Party is the Nadir of Nihilism)
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To: concentric circles
"• Taxes - no income tax increases as proposed previously by Assembly and Senate Democrats, and no sales tax increases, proposed by the Governor."

Guys the Dems are nervous.

I would not be surprised to see California's Internal Polling showing they have a shot at turning Red.

We could be seeing the beginning of a "Perfect Storm" as far as Electoral Math goes.

4 posted on 09/13/2008 5:18:05 PM PDT by Mad Dawgg ("`Eddies,' said Ford, `in the space-time continuum.' `Ah,' nodded Arthur, `is he? Is he?'")
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To: Mad Dawgg
"I would not be surprised to see California's Internal Polling showing they have a shot at turning Red."

I've been saying here for a week that California is going for McCain (Sarah really). I've talked to friends and associates that venomously hated Bush that are in all the way now for McCain/Palin.

The legislative follies, with their talk of new taxes when the state's economy is in the doldrums, is driving people away from the spenders.

5 posted on 09/13/2008 5:25:09 PM PDT by editor-surveyor ( If Obama had Palin's resume and experience Obama would be qualified to be VP too.)
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To: editor-surveyor
Phooey....there are Rino state senators....even one of those on the platform in Minneapolis who will be snuggling up to the DUMBOS to make a deal....

DUMP THE ARNULD and all of his suckups!

6 posted on 09/13/2008 6:31:45 PM PDT by pointsal
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