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."

[snopercod]

Public schools seem to be exempt from the above, which seems to contradict the title of the article. From the same source:

Appropriations from the General Fund of the State, except appropriations for the public schools, are void unless passed in each house by rollcall vote entered in the journal, two thirds of the membership concurring.

[dpwiener]

Public schools seem to be exempt from the above

An interesting exception, and if this court ruling holds up I'm sure there will be a strong effort to obtain an emergency appropriation for public schools. But in a way that makes things worse for the Democrats. If the schools and the teachers unions get their appropriations, everyone else is going to feel discriminated against. They'll scream even louder, demanding that a budget be passed ASAP.

That puts even greater pressure on the Democrats to make a deal with the Republicans, but without being able to blame Republican intransigence for "hurting the children" (although they're out of school for summer vacation anyway). If the Republicans hold firm, they can force the Democrats to cut spending and avoid tax hikes. Which in turn will make all the liberal special interest groups hysterically p!issed off at Dems in the Legislature and especially the Governor. Legislators can take the heat, since they've gerrymandered themselves into bulletproof districts, but Davis might melt.

[Sir Francis Dashwood]

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.

We passed Prop. 187, which denied public "benefits" to illegal aliens, including education. The Demroncrat governor, Gray-out Davis, swept it under the rug after he was elected. I say screw the state employees.

I live in a state whose politicians encourage and protects illegal immigration as a constituency.

It takes a 2/3 legislative vote to pass a state budget. I hope the Republicans create a HUGE logjam. Great campaign issue for Bill Simon!

[Sir Francis Dashwood]

In 1994, we passed Prop. 187, which denied public "benefits" to illegal aliens, including education. The Demroncrat governor, Gray-out Davis, swept it under the rug after he was elected. I say screw the state employees.

I live in a state whose politicians encourage and protects illegal immigration as a constituency.

It takes a 2/3 legislative vote to pass a state budget. I hope the Republicans create a HUGE logjam.

Great campaign issue for Bill Simon!

Somebody ping Bill Simon....

[let freedom sing]

School kids make the best hostages in a budget crisis. /sarcasm

[exodus]

"...A provision in the state constitution directing the Legislature to send a new budget to the governor by June 15 is routinely ignored..."

"...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..."

********************

That's great!

I'm not a fan of judicial interference,
but there's no doubt that this falls under judicial purview.

[willyone]

In the last three years Davis has increased the level of state employees by 44%. Maybe we could get by without some of these people. Why such a large increase when what we are are getting sure has not increased a like amount. I believe we are seeing the beginning of the unraveling of American govt. and society. Govt. now exists solely for advancing the interests of govt. not the interests of the taxpayers.

[willyone]

We don't need your tears jerk face. I have no idea where you live but rest assured that the same groups of people who brought this disaster on Calif. are working to bring it to your state.

[bybybill]

I hate it when your right. Here in Oregon, we have a $880 million budget shortfall. Our Rat Gov.`s answer is, suprise, suprise, we need to pay more taxes. Oregon has the highest unemployement in the country, almost 9% and new spending, approved by the worst Rino leg. in America, both caused our deficit. Now, here is the madding part, The state of Oregon has millions of acres of prime timber with lotsa willing buyers, who would employ 1000`s of workers that would then pay taxes. Simple solultion right, except it will never happen cause trees come right after teachers, and just a little before fish, and children as to what is important here.Somedays it feels like Oregon is nothing more than a cartoon.

[dougherty]

I actually came across a Californian on a yahoogroups list (totally unrelated to politics) that believes California is an absolute heaven. And yes, she is a self-proclaimed bleeding heart liberal.

[dougherty]

the same groups of people who brought this disaster on Calif. are working to bring it to your state.

It's like one great big infection, slowly, but surely, working it's way outward. Californians, this Texan feels your pain.

[truth_seeker]

If candidate Simon is wise, he will profit from this severe case of fiscal mismanagement. He will lay the entire fiasco at Davis' feet.

To wrestle the budget closer to balance, there will be a whole lot of budget cutting. Much will be for social programs and govt. employees. That gives Davis' base reasons to be pissed at him; either stay at home, or vote Simon.

The big IF will be how wisely Simon handles his campaign, this issue, and the press. If he is skilled, he will win. If he is not, he will lose.

For the critics in other states, I direct you to Props. 13, 187, 209, 227 all passed by Calif. voters. What equivalent measures have been passed in your state?

[ODDITHER]

"among them Medi-Cal, food stamps, foster care, and the salaries of judges and elected officials."

ROTFLMAO - Never fear, the State workers that are cut to minimum wage will now qualify for Medi-cal, food stamps, an a whole host of other programs. They can now have their heat and light bill paid through LEAP - and get free cheese.

But that last statement about paying the elected officials and judges really is funny.

Only in the Peoples Republic of California.

[IronJack]

... rest assured that the same groups of people who brought this disaster on Calif. are working to bring it to your state.

They can't. They're the citizens of California.

[Tailback]

The same people who brought this to California ARE bringing it to Oregon as we speak. The hundreds of thousands of Californian liberal idiots that have been fleeing the outrageously expensive bay area and SoCal to Oregon are currently turning the Willamette Valley into (Northern)Berkely.

[heleny]

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.

Another way to reduce spending (and contribute toward balancing the budget) would be to spend less money on illegal aliens. If CA can rescind the laws that grant in-state tuition to illegal aliens and if Gray Davis would try to uphold/defend Proposition 187, we might save a lot of money. At least, we should stop passing new laws that subsidize illegal aliens even more.

For UC's, the tuition difference between in-state and out-of-state tuition is about $11K. Assuming a few hundred illegal aliens benefit from the new laws, the state loses a few million dollars. The illegal alien enrollment at CSU's and community colleges is higher, but the tuition is lower -- I guess that costs a few million dollars, too. The rest of public education and healthcare represent huge costs to the state, too.