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Budget Dance Jitterbugs Along…

Budget Dance Jitterbugs Along…
With California facing insolvency, the Legislature continues its annual budget dance. On Wednesday both houses of the Legislature – Assembly and Senate – met for the express purpose to reject the Democrats’ alternative to Governor Arnold Schwarzenegger’s budget plan. Consistent with past practices the Democrat leadership, who control both houses of the Legislature, asserted that Wednesday’s vote was not a drill, but an opportunity for members of both parties to discuss the proposed budget measure. However, the Republican minority, opposing the plan, believe Wednesday’s actions were clearly another drill. 
Mired in their rhetorical two-step, the Legislature is no closer today to solving the state’s projected $24 billion deficit than it was weeks ago when the governor first proposed his budget remedies. After weeks of budget hearings, where Republicans and Democrats alike were able to review the governor’s proposals and put forward their own plans, very little compromise has taken place between the parties involved. The conference report, which failed in both houses on Wednesday, was approved by the committee on a party-line vote – Democrats approving and Republicans opposing. However, this symbolic dance occurs annually. Each year Democrats approve their budget plan, without the support of their Republican counterparts. Failure to secure Republican support in the committee process inevitably leads to eventual failure on the Assembly and Senate floors.
In Wednesday’s floor sessions both Democrats and Republicans stressed the need to solve the state’s budget deficit before the end of the week. They explained the dire situation before them, referenced the unenviable position in which they have found themselves, and claimed to understand the expectations that the voters had placed on them. They even shared their mutual disdain for the budget proposal before them and agreed that it was an inadequate answer. Nonetheless, they could not come to agreement, and the budget measure failed as expected.
Today, with the Democrat budget plan rejected, members of the state Assembly approved “stop-gap” measures that would prevent the state from having to issue IOUs to state vendors, of which State Controller John Chiang warned if the state did not solve the budget situation. With bi-partisan support, the Assembly approved these measures. Unfortunately, the Senate was not able to secure similar bi-partisan support and the measures failed. Democrat leaders were hopeful that the passage of the “stop-gap” measures, which could raise $5 billion for the state, would give additional time for legislators and the governor to find a solution.
However, upon passage in the Assembly, Governor Schwarzenegger immediately threatened that he would veto the measures. In a written statement, the governor stated, “Since the first day we (the Governor and the members of the Legislature) began working to solve this $24 billion deficit, I have been clear: the legislature must solve the entire deficit, must make hard decisions now, and must not ask California taxpayers to foot the bill. The current proposal in the Legislature amounts to nothing more than a piecemeal proposal and a second day of drills and if passed, I will veto it because it doesn’t solve the problem.”
The governor’s stated intention to veto today’s measures and the Democrat budget-alternative means the budget dance will continue. The Legislature is set to continue meeting throughout the weekend, as their leadership and the governor attempt to choreograph a workable solution.
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