Davis' timing scrutinized (hid the budget crisis until after his re-election)

How public knowledge of budget crisis unfolded

Although outsiders warned of a fiscal meltdown, the Davis administration did not reveal the enormity of the state’s financial crisis until after his November re-election. A timeline:

2002

JANUARY
Republican gubernatorial primary candidate Bill Simon and other Republicans demand Gov. Gray Davis call a special session of the Legislature to deal with future budget deficits.

MARCH
Simon wins primary to face Davis in November.

APRIL
• State Controller Kathleen Connell says the state should borrow up to $11 billion to ease a cash crunch.
• Simon says the budget problems stem from Davis’ inaction. Davis says Simon is motivated by politics.

MAY
• Nonpartisan Legislative Analyst Eliz8abeth Hill says continued deficits of $8 billion to $10 billion annually are likely, absent corrective action. Republicans seek a special legislative session; Davis declines.
• Davis releases a proposed budget for 2002-03 to cover a $23 billion shortage mostly with loans and bookkeeping changes.

JULY
• July 1: Constitutional deadline for budget passes with no spending plan in place. Hill warns, again, that the state will face deficits of $8 billion to $9.8 billion annually, through 2008 unless the Legislature and governor act. The Department of Finance gives similar information to the Davis administration.
• July 31: Finance Department says the 2003-04 budget is “nearly certain” to go into the red without corrective action. The agency and Davis decline to provide a dollar estimate.

AUGUST
Finance Department orders all state agencies to develop emergency plans to cut budgets by 20 percent. Agency does not place a dollar figure on the size of the expected deficit.

SEPTEMBER
• Davis signs the 2002-03 budget after record deadlock, resolving a $23.6 billion deficit mostly through borrowing and deferring debt to the future. He said it would be “absolutely foolhardy” to talk about the 2003-04 budget. Earlier, he said that a looming budget deficit for 2003-04 fiscal year could be "in single digits." It is his most specific description of the new deficit prior to Election Day.
• Independent analyst Jean Ross of the California Budget Project says, "Final budget negotiations … didn’t fill that gap, which means we’ll have a deeper deficit next year."
• Senate Leader John Burton, D-San Francisco, says the new deficit will require increasing vehicle license fees and income taxes on the wealthy. Davis declines to discuss Burton’s or Ross’ predictions.
• Republicans demand budget documents from Davis. He refuses, citing confidentiality protections. Republicans claim Davis is merely trying to protect his reelectionx chances.

OCTOBER
State agencies send their confidential requests for funding to the Department of Finance. Davis, who has access to the requests, declines to discuss them. Davis Finance Director Tim Gage says releasing them would "inhibit the free flow of ideas within the department." Simon says the state faces a $20 billion deficit in 2003-04. Davis declines comment.

NOVEMBER
• Nov. 5: Davis defeats Simon.
• Nov. 14: Hill says the state faces $21.1 billion deficit over 19 months, more than double previous estimates.

DECEMBER
• Dec. 3: Davis calls for a special session of the Legislature to fix the budget and cites Hill’s reports and those of his own Department of Finance, but doesn’t give details of the department’s findings.
• Dec. 5: Davis calls for $10 billion in immediate budget cuts.
• Dec. 18: Davis says the potential budget deficit is nearly $35 billion through June 2004. He later revises the estimate upward, to $38.2 billion.
• Dec. 15-30: Republicans begin discussing a Davis recall.

2003

MARCH
Davis’ critics launch recall, accusing the governor of “gross mismanagement.”

Sources: Office of the Legislative Analyst, state Senate, state Department of Finance, Office of the state Controller, newspaper archives, Bill Simon campaign, office of Assemblyman Keith Richman.

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Excellent timeline, thanks for posting it.

Thank you SO MUCH for posting this. I have been looking ALL OVER THE PLACE for this.

This is why I supported the recall. Otherwise, I think California should have suffered the consequences of his term. But because he FIXED the books, I felt he should be recalled.

So thanks.

A few Republicans who have spoken out against the recall, really need to see this.

Very much appreciated NormsRevenge!

FRegards!

You're both most welcome.

Thought I'd swim against the flow and post something about the real enemy of the conservatives and legal citizens of this state for a change... and just one of the original reasons the Recall election came to be. Since then, obviously, the demRats including Cruz and Davi$ and his minions have done all they can to further skrew this state over any way they can.

Bump for after football. :O)

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