Posted on 08/17/2007 5:27:37 PM PDT by NormsRevenge
Day 48 of the state budget impasse is here... and the disagreement between Democrats and Republicans now threatens everything from the bottom line of companies that do business with the state to infrastructure bonds the state's top investment official says he can't sell. That means thousands of unpaid bills... millions in late fees... and billions of dollars in unsold bonds.
On this morning's edition of The California Report, we examine some of these less-publicized impacts on state operations.
This week we surveyed several state agencies to see what they have-- and haven't-- spent money on in the past few weeks. And we found a pile of unpaid bills that have stacked up since July 1, the beginning of the new fiscal year.
For example, officials at CalTrans estimate they have 34,585 invoices that are now past due. Those bills total more than $8.1 million that the state's transportation agency is unable to pay to businesses small and large.
"I think they understand the difficulties state government is facing at this juncture," said CalTrans director Wil Kempton. "But you know, they would like timely payment."
And that's only the tip of the iceberg. The folks at the state Department of General Services provided a long list of unpaid bills that totals about $15 million. And at the California Highway Patrol, the tab is now about $17 million.
Many of those bills are also racking up late fees. CalTrans director Kempton said his agency's penalties to vendors now total almost $278,000.
If that wasn't enough, there's now confirmation that the budget impasse has pushed back next month's scheduled offering of $2.5 billion in infrastructure bonds. Treasurer Bill Lockyer said on Thursday that his staff typically needs up to three weeks to prepare for a sale of bonds; and they can only begin that process once Governor Schwarzenegger signs a new budget into law.
Senate Republicans say those issues are important, but not paramount.
"I think it's more important to have a responsible budget, to keep the state solvent as opposed to continuing to spend more than we take in," said Senate GOP Leader Dick Ackerman. The Irvine Republican admitted the dollar amounts in unpaid bills and late penalties are "significant," but nonetheless "de minimis" when compared to the overall size of the budget.
And just in case you're wondering... the impasse is slowly starting to creep up in the record books. The two longest stalemates -- in 1992 and 2002 -- both ended with budgets on the desk of the respective governors by the end of August. By Monday, this stalemate will undoubtedly be at least #3 on the list of latest budgets to be approved by the Legislature.
How many ways can I say, “I feel so bad for California”.
In New Jersey, our corrupt governor Corzine shut down the state government when he couldn’t come to agreement with the corrupt state legislature.
It was a wonderful few days!
My state senator, Tom McClintock is holding the line.
Go Tom!
California needs to cut the budget and stop giving all the tax payers money to the schools. Cut the budget back to zero and start over. They blow the tax payers money on anything and everything. Then they look for other ways to get money, like add “FEE’s, same as a tax but they think they can fool the people. When does it all end?
I don’t live in California but I do like Tom.
California will be much better off if those bonds never get
sold. Arnold is NOT a conservative he is a Kennedy clone.
He is going to have us further in debt than Grey Davis.
“WAAA! Why can’t those right-wing Republicans just approve of our spend-thrift ways damnit!” < /CA Dims >
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