CALIFORNIA: Leaders say they have a budget deal

Sacramento Bee ^ | 9/14/8 | Steve Wiegand

[SmithL]

Legislative leaders said today they at last have a compromise deal on an 11-week-late state budget that calls for no tax increases, no borrowing from local governments or other state special funds -- and which makes no one happy.

Emerging from a weekend meeting in the office of Senate GOP leader Dave Cogdill, the quartet declined to give specific details of their compromise plan, saying they wanted to talk to their respective caucuses first.

But they said the plan closes the $15.2 billion gap in the $103.4 billion budget for the fiscal year that began July 1 with $9 billion in spending cuts. The rest of the gap will be patched by closing tax loopholes and "accelerated revenue collections," an accounting term for collecting some one-time revenues in this fiscal year rather than the next. The leaders indicated that while balanced, the budget anticipates at least a $2 billion hole in next year's budget.

They also said it contains reforms of the budget process that Gov. Arnold Schwarzenegger had demanded, including beefing up a rainy day reserve fund and giving the governor limited authority to make mid-year budget cuts.

"I believe we are 99.9 percent there," said Assembly Speaker Karen Bass, D-Los Angeles. "Each of us has to talk to our respective caucuses, but we look forward to having a vote on the budget (Monday)."

Senate President Don Perata, D-Oakland, went Bass one-10th better by saying he was "100 percent sure that there is a deal here."

[SmithL]

Senate Republican leader Dave Cogdill, left, and Senate President Don Perata, speaking on the Senate floor last week, both said today that agreement on a new state budget has been reached, pending the OK of both party's caucuses. Perata said he is "100 percent" certain the deal is done.

[goldstategop]

A modest achievement. At least there are no new taxes but the use of accounting tricks and no hard spending cap isn't what I call a lasting solution to California's budget woes. But given what the Democrats wanted, this is the best that could be attained at this point in time.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Lancey Howard]

and which makes no one happy.

Why wouldn't taxpayers be happy (aside from not getting tax cuts)?

[upchuck]

"It took an unparalleled number of mirrors and the most amount of smoke ever released in one place, but I believe we are 99.9 percent there," said Assembly Speaker Karen Bass, D-Los Angeles. "Each of us has to talk to our respective caucuses, but we look forward to having a vote on the budget (Monday)."

[Drango]

No details but I’m sure they will bend me over a table with my pants down....

[ArmstedFragg]

That’s the classic sign of a good negotiation, nobody’s happy.

[PC99]

Maybe, maybe, maybe there will be some movement to fix this disfunctional process. But it’s California, so I’m not holding my breath.