Posted on 05/14/2002 3:03:55 AM PDT by snopercod
SACRAMENTO - A day before the governor is expected to release his May budget revision, Republicans today will call for a combination of spending cuts and delays of some expenses to plug the state's $20 billion budget shortfall. While not planning to make specific suggestions, Republican leaders will say the governor should place a cap on state spending and avoid imposing tax increases to help the state make ends meet in the 2002-03 fiscal year, which begins July 1.
"We are not going to make specific recommendations; it's the governor's responsibility to offer a balanced budget," Assemblyman Bob Pacheco said of the planned press conference. "But, what we are saying is that Democrats are spending more money than the state has."
Lawmakers have braced for the governor's budget revision for months. In January, the Legislature approved $5.2 billion in cuts proposed by Gov. Gray Davis. But since those initial reductions, the anticipated shortfall has swelled to roughly a fifth of the state's total $100 billion annual spending plan from $12.5 billion to more than $20 billion.
"If we're going to get through this budget crisis, the Legislature is going to have to make a lot more spending reductions," said Pacheco, R-Walnut.
Among them, Pacheco suggests eliminating employee positions at state agencies that the Legislature funds but remain vacant. The slots, known as "phantom positions," account for an estimated $300 million of the state's payroll, which is money that Pacheco said could be better spent on financially strapped schools and public safety programs.
"There need to be priorities," Pacheco said. "And right now, the Democrats are recklessly spending and expecting to enact new taxes to pay for their pet programs."
But before talking about paring state programs, Republicans should consider the unintended consequences that cuts may have on the most vulnerable Californians, including the disabled, children and the elderly, said Assemblyman Darrell Steinberg, D-Sacramento.
"As difficult as the budget crisis may be, we need to protect those programs and priorities which are most important. As Democrats, we definitely have priorities and we are going to do everything we can to protect them," said Steinberg, chairman of the Assembly Appropriations Committee.
However, continuing to refinance the state's outstanding debt would, at least, help avert deep cuts to bipartisan priorities, including education and public safety, said state Sen. Bob Margett.
"There is no question that there are going to be a lot of cuts coming," said Margett, R-Arcadia. "But taking advantage of lower interest rates could be a big help."
Calling it a "sensible, business-like approach" to the budget process, Margett supports the idea of having a zero-based budget process, in which state programs are funded on merit each year rather than automatically.
While the Davis administration has not released details as to how the governor may try to bridge the budget gap, some Republicans fear he will resurrect an earlier plan to delay contributions to the teachers' and state employees' pension funds, a plan that was shelved in February after political outcry from the GOP and labor unions.
Another less popular idea, floated by some Democrats, would be to repeal a two-thirds reduction in the state car tax, which the independent Legislative Analysts Office estimates could save $3.8 billion in revenue that the state would not have to reimburse local governments to backfill their revenue loss because of the fee reduction.
Margett said temporarily suspending VLF rebates to motorists may be unavoidable.
"It could only be temporary and the money would fill a very large hole in the budget," he said.
-- Chris Rizo can be reached at (916) 449-9006.
Once more the politicians (this time republicants) are counting on Wall Street to help ease the pain. I wonder if they realize the price that Wall Street will make the State pay (in the form of a balanced budget that is fiscally responsible and based on realistice, as opposed to smoke & mirrors, financial projections), no they think that Wall Street will just give the money if they ask and that the rating agencies will look into the hearts of the democrats to see that they care and that will be all that is required for good bond ratings. Yeah, right.
So the cornerstone of the California budget is going to be borrow, borrow, borrow. I wonder if the Gov and the Legislature have the discipline to act in a "business like manner" long enough during an election year to actually be able to get the money? This should be fun to watch, I hope the Republicans have a game plan that they have thought through on this. I am sure that the Democrats do not have a game plan that has been thought through.
Not a chance that this will happen, their voters would be terribly angry!
Which sets the stage for a lawsuit for Davis violating the California Constitution, which prohibits the State from borrowing over $300,000 without a 2/3 majority in their Congress PLUS a majority vote of the people.
But the republicans in the California legislature seem to have the same regard for the California Constitution as do the democRATS there. (e.g. none, nada, zilch)
I was wondering if they could circumvent a November election by issuing warrants? But still they need to get their financial house in order before they can do anything and that will be really hard. This is going to be a real "rock and a hard place" for democrats!
Oh yes, I downloaded the Governor's "May Revision", but don't have the energy to look at it tonight.
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