California: No budget, state withholds checks

Sacramento Business Journal ^ | 11:45 EDT Friday june 28, 2002 | unknown

[Ernest_at_the_Beach]

With members of the state Legislature at an impasse over a new operating budget for the world's fifth largest economy, the state of California is withholding checks to pay for social services administered by welfare departments in the 58 counties, officials said Thursday.

Some $245 million to pay for programs such as the state's welfare-to-work program called CalWorks, will be withheld, says Rita Saenz, director of the Department of Social Services.

"The problem here is that the counties are still obligated to administer the programs," she says, putting the financial load, at least temporarily, on counties. It was not immediately determined if each county could find enough local money to maintain the welfare programs in lieu of state funding.

She says only those programs which are federally mandated will be funded during the budget impasse.

Saenz says the stoppage could create "a climate of fear" among welfare recipients.

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The Legislature could pass an emergency appropriation to make the payments even if the budget itself is not approved by the end of the fiscal year, says Betty Yee, chief deputy director of the Department of Finance.

Even without a budget, school districts can expect most of their state payments to be made. But companies which sell things and services to the state may not see any payments until there is a budget.

Also state employees can expect to be paid as usual, budget or not. That's because a court decision which would have them paid at no more than the federal minimum wage until a budget is in place is being appealed, and, until that is settled, the paychecks will go out as usual and at the usual rates, the state Controller's office says.

According to the state Constitution, a budget must be in place by July 1. But that requires a two-thirds majority in both the Assembly and the Senate. A proposed spending plan still lacks at least one Republican vote in the Senate and four votes in the lower house, assuming all the majority Democrats voted in favor.

Unlike the last several years when the state had huge surpluses and budgets were passed on time, California's budget-making this year is hung up on how to cover an estimated $23 billion shortfall between expenses and expected revenues.

[Ernest_at_the_Beach]

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[Ernest_at_the_Beach]

. A proposed spending plan still lacks at least one Republican vote in the Senate and four votes in the lower house, assuming all the majority Democrats voted in favor.

Republicans are the good guys not the bad guys!

[okie01]

This is not going to be pretty...

[moodyskeptic]

"Saenz says the stoppage could create "a climate of fear" among welfare recipients. "

I'll say. I'm stocking up on water, rations and checking my home security "measures".

[nimc]

"Saenz says the stoppage could create "a climate of fear" among welfare recipients.

Well good grevey! We better get them poor folks some librium so they can handle the stress, free of course.

[nimc]

Clever, aren’t we?

[Semi Civil Servant]

These folks are going to be mighty mad when they roll out of bed on Monday afternoon.

We're talking about their "paycheck" -- yes, they do call it that.

[nimc]

grevey = gravy

[BenLurkin]

>The democrat party runs the state government in California
>Not only are they crass nanny-state socialists, they are incompetent nincompoops as well.
>Especially Governor Doofus.

[Jack Black]

It would be wonderful if the recalcitrant Republicans could keep the checks from going out for two, three, four, six, or ten weeks!

Remember the heady days of "The Contract With America" and Newt's statement that "so what if it shuts down, it's not our government anyway". That was before the contents of the FBI files were used to turn him ... I always thought it was the greatest opportunity of the last 20 years to downsize government.

If the free cash stops and the morons riot many formerly liberal types will start to see the errors of their ways, I think. In any case it will be great fun to watch the socialist hand wringing orgy that will begin with the first checks missed.

Bring it on!

[BJungNan]

The problem here is that the counties are still obligated to administer the programs," she says,...

And just exactly why are they obligated?

[Ernest_at_the_Beach]

Its the Moral High Ground thing, I suppose!

[Ernest_at_the_Beach]

Beats me, besides that the state is looking at raiding monies set aside for the local governments:

California: State looks at local funds in quest to balance budget (Davis is stealing local monies )

[d14truth]

Enron, WorldCom, Sacramento con

Name three entities who 'cook' using future revenues to enhance current picture.

Davis should NOT be allowed to use 'future tobacco settlements' to balance this year's budget.(See Xerox)

[Dog Gone]

Also state employees can expect to be paid as usual, budget or not. That's because a court decision which would have them paid at no more than the federal minimum wage until a budget is in place is being appealed, and, until that is settled, the paychecks will go out as usual and at the usual rates, the state Controller's office says.

Darn. I was hoping that state employees would start receiving minimum wage paychecks. That would have brought pitchforks and torches to the capitol in Sacramento and made this impasse an enormous political liability for the Democrats.

[Grampa Dave]

Thanks for the article.

Typical Rat Bravo Sierra. First you withhold the checks to the poor (not that I'm against that). Starting Monday every left wing maggot infested fishwraps will have a front page story of how some poor illegal alien semi working mother of 24 is not getting paid. Pictures and bleeding heart stories are ready to do right now.

Of course Simon, GW, the republicans in the Kali Legislature, Enron, and we evil VRWCs will be blamed for no checks.

Little will be printed re the 12 billion surplus that has now become a probable 26 billion deficit. (Total over spending nearing 40 Billion $'s by the socialist/communists rats in charge of our Kali Legislature.)

I will be starting my monthly donation to the Simon Election Fund. They will need money to get the real truth out there. The state is broke due to Davis and the Rat/socialists/communists in the legislature who have spent close to $40 billion that the state doesn't have!

[PatrioticAmerican]

"the state of California is withholding checks to pay for social services administered by welfare departments in the 58 counties, officials said Thursday. "

That's just got to piss off the illegals on welfare! I wish they'd do that forever.

[John Jorsett]

Looks like they're not going to do it at all. At least for July. Welfare checks not at risk, controller's office says