Budget Debate Heats Up: Consolidate or Eliminate?
As the July deadline to remedy the state’s projected $25 billion deficit approaches, tensions between the legislators, special interest groups, and the public are truly heating up. In the past week, mayors of California’s cities met with Governor Arnold Schwarzenegger and members of the Legislature, expressing their considerable displeasure with the Governor’s attempts to borrow from cities and counties. Further raising the mayors’ displeasure were plans to shift additional social service responsibilities to local funding. They warned that the proposed funding cuts to local government would result in layoffs of police and fire service providers and force greater cuts in other “vital” social services.
While conflicts between state and local government are common with regular fights over funding, conflicts between Democratic leaders and unions are rarely public. With the defeat of the May 19 Special Election budget measures, Democrats are reluctant to attempt to raise taxes, while unions are pressing for tax increases to offset proposed cuts. These traditional allies are struggling to find agreement as many unions believe their members are being “thrown under the bus,” and legislators discuss cutting specific state pension programs without negotiating for more taxes.
One union – committed to compelling the state to include tax increases as part of the budget solutions – has dedicated $1 million for television advertising that promotes new taxes on citizens.
Democratic leaders are likewise expressing frustration with unions because they believe union leaders are “ignoring the reality of an angry public, a sour economy and a state government approaching insolvency.” They further stress the need for quick solutions, but moving too quickly would preclude the potential to gain necessary Republican support for tax increases.
While legislators appear resigned to accept many of the Governor’s proposals, the process of scrutiny is intensifying over the Governor’s program consolidation and elimination recommendations. For instance, the proposed elimination of the state’s CalWorks program has brought outrage from members of the Budget Conference Committee, who oppose scrapping the program. During Wednesday’s hearings, members of the Committee did not hide their anger with the Governor’s budget representatives, and refused to approve several of Governor Schwarzenegger’s recommendations. 
The Committee will continue its work over the next few weeks, seeking consensus as the July deadline looms.