California: Court says schools to lose if budget is late

The San Diego Union Tribune ^ | May 30, 2002 | Ed Mendel

[Ernest_at_the_Beach]

SACRAMENTO – If a new state budget is not signed by July 1, a state appellate court decision issued yesterday would block a $3 billion payment to schools in July and would cut state worker paychecks to the minimum wage.

School groups, fearing that the Proposition 98 school-funding guarantee could be weakened, may join state Controller Kathleen Connell in an appeal to the state Supreme Court, or pursue a separate legal strategy to overturn the decision.

The ruling in a 4-year-old lawsuit filed by the Howard Jarvis Taxpayers Association comes as legislators, faced with a record $23.6 billion budget gap, are battling over a proposal by Gov. Gray Davis to raise taxes and cut health and welfare programs.

"If the Legislature wasn't feeling the heat before, now they are in the fire," said Jon Coupal of the Jarvis association.

Legislative deadlocks have often caused the state to begin the new fiscal year on July 1 without a budget. A provision in the state constitution directing the Legislature to send a new budget to the governor by June 15 is routinely ignored.

In 1992, the last time there was a similar budget gap, the state was forced to pay its bills with more than $3 billion worth of "IOUs" that could not be cashed until a budget was signed by former Gov. Pete Wilson on Sept. 2.

A Connell aide said the state is on track to obtain a $7.5 billion loan next month needed to pay off a $5.7 billion short-term loan and ensure that the state would not run out of cash during any extended deadlock this year.

The Jarvis association, citing a provision in the state constitution, filed a lawsuit in Superior Court in Los Angeles in 1998 to prevent the state from continuing to spend money if there is no budget in place.

"It forces the decision-makers in Sacramento to take the budget seriously," said Coupal, "and it is unwise, we believe, from a perspective of public policy to be spending hundreds of millions of dollars without legal authority to do so."

The appellate court, after hearing oral arguments in March, said the state can continue to make some payments under state and federal law when there is no budget – among them Medi-Cal, food stamps, foster care, and the salaries of judges and elected officials.

But the decision would block school payments authorized by the Proposition 98 guarantee. The court also interpreted a previous federal court ruling requiring payments to state workers under the Fair Labor Standards Act to mean the state minimum wage, $6.75 an hour.

"It's really interesting that the court managed to say that paying judges is more important than keeping schools running," said Kevin Gordon of the California Association of School Business Officials.

Gordon said school groups may join Connell's appeal or, in an attempt to obtain a clearer protection of the Proposition 98 guarantee, file a separate legal action if a budget deadlock develops this year.

Connell's office, in addition to filing an appeal, will look for other legal statutes, apart from Proposition 98, that could continue to authorize school funding if there is no budget.

"There are state workers who live from paycheck to paycheck," said Rick Chivaro, Connell's chief counsel. "If you reduce them to $6.75 an hour, their payments on mortgages, cars, tuition and other obligations are at risk."

[Ernest_at_the_Beach]

More on the Budget crisis!

[Ernest_at_the_Beach]

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[Ernest_at_the_Beach]

More tidbits !

[Ernest_at_the_Beach]

4-year-old lawsuit filed by the Howard Jarvis Taxpayers Association

[unixfox]

"There are state workers who live from paycheck to paycheck,"

So do a lot of other people !! When the state of Kalifornia learns to keep it's costs under control and fix their ILLEGAL alien problem then maybe they can think about getting raises. Until then, I say let the effing state starve to death.

[Chad Fairbanks]

"There are state workers who live from paycheck to paycheck," said Rick Chivaro, Connell's chief counsel. "If you reduce them to $6.75 an hour, their payments on mortgages, cars, tuition and other obligations are at risk."

While I don't wish bad things to happen to people, I think that perhaps it's time the public sector started feeling the same pinch that the private sector constantly feels...

[Myrddin]

"There are state workers who live from paycheck to paycheck," said Rick Chivaro, Connell's chief counsel. "If you reduce them to $6.75 an hour, their payments on mortgages, cars, tuition and other obligations are at risk."

The court told them all state employees would be limited to pay at the federal minimum wage rate of $5.15 per hour NOT the California minimum wage of $6.75. Rick obviously wasn't paying attention.

[Billy_bob_bob]

Hear! HEAR! How about a %10 R.I.F. (Reduction In Force) for all of the state agencies? Just like what gets done in the private sector? If California were a corporation that was looking at the kind of budget crisis they are looking at, don't you think maybe they might consider a layoff? In fact, a layoff would be the very first tool they would pull out of the old kit-bag!

I think it is long past time for state agencies to be managed in the same way that private companies are managed, and that means that every so often there are going to be layoffs. Helps to clear out the deadwood.

[Dog Gone]

and the salaries of judges and elected officials

While I laughed at the thought of Gray Davis and the legislators making minimum wage, this new fact is even better! Now, any delay will make it look as if the Democrats don't care as long as their own paychecks are secure (which has been true all along).

This decision has really made my day!

[Myrddin]

Since the budget deadline is July 1st, maybe California should shutdown the schools completely for the summer as a first step in dealing with the budget overruns. A few people will complain about missing summer school, but it isn't the main part of the school year.

[South40]

So do a lot of other people !! When the state of Kalifornia learns to keep it's costs under control and fix their ILLEGAL alien problem then maybe they can think about getting raises. Until then, I say let the effing state starve to death.

That’s somewhat of a simplistic approach—don’t you think?

Over 40% of California voters vote Republican; I know, I am one.

We are at the mercy of the Democrat controlled Senate, Assembly, and Governor.

But according to you, these nearly 13 million conservatives should be left to “Starve to death?”

Wise choice of words there bub.

Oh, and, the problems with illegal aliens falls more in the lap of federal lawmakers who have done practically nothing to stop the flow of illegals into this country.

California foots the bill for that inaction, and would no doubt love to see it end.

[Chad Fairbanks]

I can agree with the RIF... :0)

[IronJack]

The citizens of California -- the ones who overwhelmingly pass these plebiscites -- are obviously at war with the government of California -- the elitists who are determined to implement a left-wing agenda over the bodies of the populace. This kind of aristocratic arrogance is what got Louis XVI beheaded. And got King George III booted from these shores a few centuries ago.

I'd weep for California, except it's not worth the salt in my tears.

[Hugin]

The court told them all state employees would be limited to pay at the federal minimum wage rate of $5.15 per hour NOT the California minimum wage of $6.75.

I think you read that backwards.

The court also interpreted a previous federal court ruling requiring payments to state workers under the Fair Labor Standards Act to mean the state minimum wage, $6.75 an hour.

[Glenn]

I think other states should get together and sue the state of California for being a bad state. You know...like the tobacco settlement, Microsoft, and anyone whoever employed an analyst to guess what the price of AT&T or Enron was going to be.

[alaskanfan]

Typical liberal bravo sierra.

First they cut the programs that mean the most to the public.

Here in Alaska a few years ago there was a mandate for an income tax that was voted down by the people. The governmental response was to cut road maintenance programs, however there was still enough money in the budget to vote themselves a pay increase and build a new exercise facility for the legislators in the capitol.

[Myrddin]

Another parallel article on this issue stated that wages would be paid at the federal rate not the state rate. I suspect Connell et al are angling for the state rate to reduce the howls from state employees.

[Edmund Burke]

Bush to California......."DROP DEAD"

[Edmund Burke]

Is there a procedure in the U.S. Constitution to expel a state from the Union against its will?

[snopercod]

Thanks for keeping us flagged, Ernest.

I think I smell a whiff of "emergency powers" in the air. From the California Constitution, Article IV, Section 12 (c):

Until the budget bill has been enacted, the Legislature shall not send to the Governor for consideration any bill appropriating funds for expenditure during the fiscal year for which the budget bill is to be enacted, except emergency bills recommended by the Governor or appropriations for the salaries and expenses of the Legislature.