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CA: Governor, legislative leaders reach budget agreement
Bakersfield Californian ^ | 7/5/05 | Tom Chorneau - AP

Posted on 07/05/2005 6:16:04 PM PDT by NormsRevenge

SACRAMENTO (AP) - Gov. Arnold Schwarzenegger and legislative leaders reached agreement Tuesday on a state budget that adds money for schools and road projects without resorting to the deficit spending that has plagued California in recent years.

"This is a terrific budget," the governor said in a late-afternoon news conference. "It's a budget that moves California forward."

The accord on the roughly $116 billion spending plan comes five days after the start of the new fiscal year and after a weekend of negotiations between the governor and leaders of both major parties.

Assembly Speaker Fabian Nunez, D-Los Angeles, said Schwarzenegger had brought Republicans and Democrats together, forcing compromises from both sides.

He described the budget for the 2005-2006 fiscal year as fiscally responsible yet compassionate, protecting the interests of both parties.

Passing a balanced budget on time and avoiding the weeks of bitter partisan infighting that has marked past summer budget debates has been a priority for Schwarzenegger.

Democrats have likewise wanted to avoid a drawn-out budget battle while the specter of Schwarzenegger's Nov. 8 special election looms in the background. They earlier agreed to a budget that was similar to the $115.7 billion plan Schwarzenegger proposed in May, but legislative Republicans rejected it.

Separating the two sides has been about $1 billion in additional spending favored by Democrats, who wanted to put the money toward education and health care funding. Republicans have said the state cannot afford the extra spending and if allowed it will add to future debts.


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government; Politics/Elections; US: California
KEYWORDS: agreement; bohica; budget; california; governor; leaders; legislative; reach

1 posted on 07/05/2005 6:16:05 PM PDT by NormsRevenge
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Assembly Speaker Fabian Nunez, D-Los Angeles, said Schwarzenegger had brought Republicans and Democrats together, forcing compromises from both sides.

He described the budget for the 2005-2006 fiscal year as fiscally responsible yet compassionate, protecting the interests of both parties. -- LOL

---

The state budget is still growing by almost 10 % a year. where is the sanity?

2 posted on 07/05/2005 6:19:58 PM PDT by NormsRevenge (Semper Fi ... "To remain silent when they should protest makes cowards of men." -- THOMAS JEFFERSON)
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To: NormsRevenge
where is the sanity?

Not in Sacramento. :-(

3 posted on 07/05/2005 6:27:48 PM PDT by Carry_Okie (There are people in power who are truly evil.)
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To: NormsRevenge

Isn't the state also growing by 10% a year? In any event, sanity has never been the byword for Sacramento and it won't be likely in my lifetime.


4 posted on 07/05/2005 6:28:01 PM PDT by kingu
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To: NormsRevenge
"...where is the sanity?"

There won't be any. We elected the wrong guy.

5 posted on 07/05/2005 6:28:25 PM PDT by Czar (StillFedUptotheTeeth@Washington)
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To: NormsRevenge

AP UPdate

---

Governor, legislative leaders reach budget agreement

http://www.bakersfield.com/state_wire/story/5584396p-5556596c.html

By TOM CHORNEAU, Associated Press Writer

Posted: Tuesday July 5th, 2005, 6:20 PM
Last Updated: Tuesday July 5th, 2005, 6:20 PM

SACRAMENTO (AP) - Gov. Arnold Schwarzenegger and legislative leaders reached agreement Tuesday on a state budget that adds money for schools and road projects without resorting to the deficit spending that has plagued California in recent years.

"This is a terrific budget," the governor said in a late-afternoon news conference. "It's a budget that moves California forward."

The accord on the roughly $116 billion spending plan comes five days after the start of the new fiscal year and after a weekend of negotiations between the governor and leaders of both major parties.

Assembly Speaker Fabian Nunez, D-Los Angeles, said Schwarzenegger had brought Republicans and Democrats together, forcing compromises from both sides.

He described the budget for the 2005-2006 fiscal year as fiscally responsible yet compassionate, protecting the interests of both parties.

Passing a balanced budget on time and avoiding the weeks of bitter partisan infighting that has marked past summer budget debates has been a priority for Schwarzenegger.

Democrats have likewise wanted to avoid a drawn-out budget battle while the specter of Schwarzenegger's Nov. 8 special election looms in the background. They earlier agreed to a budget that was similar to the $115.7 billion plan Schwarzenegger proposed in May, but legislative Republicans rejected it.

Separating the two sides has been about $1 billion in additional spending favored by Democrats, who wanted to put the money toward education and health care funding. Republicans have said the state cannot afford the extra spending and if allowed it will add to future debts.

Neither Schwarzenegger nor the legislative leaders would provide the total spending figure for the budget to which they agreed. State Finance Director Tom Campbell said his office would produce an overall budget figure when it had finished reviewing the agreement.

Schwarzenegger said the spending plan is balanced without borrowing or raising taxes. He called it "the best budget agreement California has seen in years" and said it puts the state on a rebuilding footing after years of multibillion dollar deficits.

"Now we must work together to reform and repair our broken budget process and break the cycle of budget deficits..." he said.

The agreement still needs approval from a two-thirds majority in both houses, meaning some Republicans will have to join majority Democrats in supporting it. Assembly Minority Leader Kevin McCarthy, R-Bakersfield, said he expects enough members of his party to vote for it.


6 posted on 07/05/2005 6:29:10 PM PDT by NormsRevenge (Semper Fi ... "To remain silent when they should protest makes cowards of men." -- THOMAS JEFFERSON)
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To: NormsRevenge

Good job Arnold. His low poll numbers weren't good for the GOP anywhere. His star power is. Now go bust up those Dems at the ballot Arnold.


7 posted on 07/05/2005 6:29:28 PM PDT by DuckFan4ever (Liberals lie)
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To: DuckFan4ever

Now he can go gather money for the campaign ahead.. and take a break.

It seems like we are in perpetual election mode out here of late.


8 posted on 07/05/2005 6:40:42 PM PDT by NormsRevenge (Semper Fi ... "To remain silent when they should protest makes cowards of men." -- THOMAS JEFFERSON)
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To: NormsRevenge

Bad news for Californians. Prepare to bend over.


9 posted on 07/05/2005 6:50:56 PM PDT by Brilliant
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To: Brilliant

Bend over for what? Did I miss something in new taxes?


10 posted on 07/05/2005 7:21:30 PM PDT by byteback
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To: NormsRevenge

BOHICA. C/O The Republicrats.


11 posted on 07/05/2005 7:21:52 PM PDT by Mad_Tom_Rackham (Mark Levin and Ann Coulter for SCOTUS!)
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http://www.bakersfield.com/state_wire/story/5584406p-5556618c.html

State budget agreement at a glance

The Associated Press

Posted: Tuesday July 5th, 2005, 7:50 PM
Last Updated: Tuesday July 5th, 2005, 7:50 PM

Gov. Arnold Schwarzenegger and legislative leaders on Tuesday agreed on a budget for next fiscal year. The budget will spend about $116 billion, but the overall figure was not immediately available as the Finance Department reviews the deal. Here are some highlights of the agreement, which will be taken up Thursday by the Legislature:

- No new taxes, no new borrowing.

- Cuts the expected deficit during the 2006-2007 fiscal year from an estimated $15 billion to about $5 billion.

- Spends a record $61 billion on education, including K-12 and higher education, increasing per pupil funding to more than $10,000.

- Saves $235 million by requiring school districts to partly fund teacher retirement benefits.

- Funds Proposition 42, requiring $1.3 billion in gas taxes to go toward road improvements.

- Pays $1.2 billion to cities and counties for money lost when the state repealed an increase in the vehicle license fee two years ago.

- Costs state $206 million by rejecting Schwarzenegger's proposal to reduce state support for wages of in-home health care workers.

- Adds $20 million to nursing training programs at community colleges and universities.

---

Source: Gov.'s office, Legislative Analyst.


12 posted on 07/05/2005 8:04:11 PM PDT by NormsRevenge (Semper Fi ... "To remain silent when they should protest makes cowards of men." -- THOMAS JEFFERSON)
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To: NormsRevenge; SierraWasp; Carry_Okie; Amerigomag; heleny; tubebender

This just in. $61 million on education--dang!

(Gotta love the No NEW borrowing language. Plenty of borrowing via that old $15 billion credit card, though.)


http://www.sanluisobispo.com/mld/sanluisobispo/12061147.htm

Associated Press
Posted on Tue, Jul. 05, 2005

State budget agreement at a glance

Gov. Arnold Schwarzenegger and legislative leaders on Tuesday agreed on a budget for next fiscal year. The budget will spend about $116 billion, but the overall figure was not immediately available as the Finance Department reviews the deal. Here are some highlights of the agreement, which will be taken up Thursday by the Legislature:

_ No new taxes, no new borrowing.

_ Cuts the expected deficit during the 2006-2007 fiscal year from an estimated $15 billion to about $5 billion.

_ Spends a record $61 billion on education, including K-12 and higher education, increasing per pupil funding to more than $10,000.

_ Saves $235 million by requiring school districts to partly fund teacher retirement benefits.

_ Funds Proposition 42, requiring $1.3 billion in gas taxes to go toward road improvements.

_ Pays $1.2 billion to cities and counties for money lost when the state repealed an increase in the vehicle license fee two years ago.

_ Costs state $206 million by rejecting Schwarzenegger's proposal to reduce state support for wages of in-home health care workers.

_ Adds $20 million to nursing training programs at community colleges and universities.


13 posted on 07/05/2005 9:11:37 PM PDT by calcowgirl
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To: NormsRevenge

I guess I shoud have caught up on the bottom of this thread before posting, lol. You're good!


14 posted on 07/05/2005 9:12:56 PM PDT by calcowgirl
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To: calcowgirl
"Costs state $206 million by rejecting Schwarzenegger's proposal to reduce state support for wages of in-home health care workers."

I don't know if it's because of the way it's worded, or if I'm just dense, but I can't figure this one out!!!

15 posted on 07/05/2005 9:17:52 PM PDT by SierraWasp (What other nation could spear a comet in deep space on independence holiday? God Bless America!!!)
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To: calcowgirl
My kid's private school education is a steal at $6000/yr.

I almost choked when I read $61 billion

16 posted on 07/05/2005 9:21:19 PM PDT by dc27
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To: byteback
"The agreement still needs approval from a two-thirds majority in both houses, meaning some Republicans will have to join majority Democrats in supporting it. Assembly Minority Leader Kevin McCarthy, R-Bakersfield, said he expects enough members of his party to vote for it."

Hey! It MUST have tax increases in it. That's the ONLY reason for a super majority!!! The press keeps deliberately mis-reporting this to keep pressuring Republicans without mercy!!!

17 posted on 07/05/2005 9:24:47 PM PDT by SierraWasp (What other nation could spear a comet in deep space on independence holiday? God Bless America!!!)
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To: NormsRevenge
Neither Schwarzenegger nor the legislative leaders would provide the total spending figure for the budget to which they agreed.

That doesn't sound good.

18 posted on 07/05/2005 9:25:07 PM PDT by tubebender (Growing old is mandatory...Growing up is optional)
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To: SierraWasp

My recap: Arnie actually wanted to cut something... but caved. Result: state spends $206 million more than Arnie initially proposed.


19 posted on 07/05/2005 9:25:25 PM PDT by calcowgirl
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To: calcowgirl

I think I see several places where he "caved!" In fact he's a regular spelunker!!! Governor Spelunker!!! I like it!!! (he's always caving)


20 posted on 07/05/2005 9:28:22 PM PDT by SierraWasp (What other nation could spear a comet in deep space on independence holiday? God Bless America!!!)
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To: SierraWasp; NormsRevenge; calcowgirl

Where are local schools going to get 250 million for teachers pensions the Gov passed off on them. Is the restoration of county "license money" new or was this in the original budget?


21 posted on 07/05/2005 9:50:31 PM PDT by tubebender (Growing old is mandatory...Growing up is optional)
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To: tubebender

I think the license money was in the original.

I remember looking at his first plan to divert the $500 million of pension cost to local governments--with absolutely no corresponding revenue. That action stunk, in my book, as I assumed it would only force local tax increases. Now he cut the number in half--but it still stinks.


22 posted on 07/05/2005 11:16:36 PM PDT by calcowgirl
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To: calcowgirl
And what does the "no borrowing" provision mean. Is it enforceable? I'm skeptical they mean it. I love the no new taxes part but hey this budget should have cut spending. On the other hand - its time for the teachers unions to shut up. Schools are getting an unprecedented amount of money and if they don't put it to good use, then we'll know all the rhetoric about starving education was just pure Barbara Streisand.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
23 posted on 07/05/2005 11:32:52 PM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: SierraWasp

In general, home care workers are paid by the counties, with the state reimbursing the costs. The original budget proposal would have limited the state reimbursement to the minimum wage, leaving the counties to pay any additional amount they chose to pay. From the sounds of it, that proposal has been dropped.

Does that translate any better?


24 posted on 07/06/2005 12:59:30 AM PDT by ArmstedFragg
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