Video: Governor Jerry Brown Vetoes California Budget – Now What?

Posted 1 CommentPosted in California, California Budget, California Legislature, Jerry Brown

I am returning Senate Bill 69 and Assembly Bill 98 without my signature

Who knows?

Brown announced the veto in a press release Thursday. “Unfortunately, the budget I have received is not a balanced solution,” his statement said. “It continues big deficits for years to come and adds billions of dollars of new debt. It also contains legally questionable maneuvers, costly borrowing and unrealistic savings. Finally, it is not financeable and therefore will not allow us to meet our obligations as they occur.”

Read the governor’s official veto message here.

The plan contains higher taxes, billions of dollars in delayed payments to schools, and various accounting maneuvers to balance the books. Brown had previously warned that he would not sign a budget containing such accounting gimmicks.

Democratic leaders in the Assembly and Senate said the plan they passed Wednesday was crafted without input from the administration.

It is unclear whether state lawmakers will receive their paychecks in the wake of the veto. Under a  law passed by voters last year, legislators lose pay if they fail to send the governor a budget by June 15. Lawmakers said Wednesday they believe the budget they passed meets that test, but Controller John Chiang, California’s chief financial officer, will decide whether to issue their paychecks.

Brown’s veto is the latest twist in a budget process that has been just as divisive and partisan as it was under his predecessor, Arnold Schwarzenegger.

The ball is back in the California’s Legislature’s court, which I am positive they do not appreciate, especially if the California Controller decides to withhold their paychecks.

The Democrats who control the Legislature will either have to make more cuts or make some sort of deal with the Republicans to raise revenue – but in return for something. The likelihood of a deal with the GOP is extremely unlikely.

Plus, the unions who own the Democrats don’t want a tax election before 2012, because they wish to use their campaign cash to win a 2/3’rds super majority in the Legislature at the November 2012 general election.

So, it is the Schwarzenegger years all over again = budget gridlock and accounting tricks. But, Brown vetoed THAT budget today – so, what is next?

All eyes and ears in the California Legislature today will be on California Controller John Chiang to see if they get paid.

Bet they move fast, if their paychecks are withheld.

California Democrats Attempt to Balance State Budget By Violating the California Constitution But Arnold Schwarzenegger Says NO

Posted Posted in Arnold Schwarzenegger, California Legislature, Proposition 13
Howard Jarvis June 1978

Howard Jarvis, chief sponsor of the controversial Proposition 13, signals victory as he casts his own vote at the Fairfax-Melrose precinct.” June 1978. Courtesy of the Los Angeles Times

Even RINO California Governor Arnold Schwarzenegger will NOT take on Prop 13 and the California Constitution.

Democratic leaders sent Gov. Arnold Schwarzenegger an $18 billion deficit-cutting package on Tuesday, a plan he quickly vetoed as anti-tax groups filed a lawsuit to stop it.

The activity came amid the Legislature’s third special session since the November election to deal with California’s worsening budget deficit, projected at $42 billion over the next 18 months.

With Schwarzenegger’s veto, time is running out for lawmakers to find a midyear fix. The state controller has warned that California will be so short of cash it will have to start issuing IOUs in February to vendors and taxpayers expecting refunds.

Democrats said their plan would have avoided what Schwarzenegger has described as a “financial Armageddon,” but it appeared to be dead even before it arrived on the governor’s desk.

California Legislative Democrats tried an end run around the California Constitution that was amended in 1978 by Proposition 13 that requires any increase in taxes be affirmed by a 2/3rd’s vote of the Legislature.

If the Governor were to have a change of heart and approve such an outrageous scheme, the California Supreme Court would quickly issue an injunction and/or a referendum petition would be quickly filed by California voters.

Looks like the California Legislature better get busy and cut spending.

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California To Be Out of Money in February

Posted 1 CommentPosted in Arnold Schwarzenegger, California, California Legislature
Arnold Schwarzenegger December 1 2008

California Governor Arnold Schwarzenegger, December 1, 2008

California will be out of cash in February unless the Democrats and Republicans can repair the state budget.

California is on track to run out of cash in February or March and faces a $15 billion cash shortage by the end of its fiscal year in June unless officials plug an $11.2 billion budget gap, according to the state’s budget director.

Additionally, if Gov. Arnold Schwarzenegger and lawmakers fail to close the current fiscal year’s budget shortfall soon, California, the most populous U.S. state, may in March delay payments to its vendors or hand them notes promising payment, according to a Dec. 1 letter to top lawmakers from the director of the Department of Finance, Michael Genest.

The Democrats in the California Legislature refuse to cut spending and the Republicans refuse ANY tax increases. Governor Arnold proposes some spending cuts, a sales tax increase and perhaps a motor vehicle registation fee hike.


When will there be a deal?

Flap bets when the state runs out of money and government offices are forced to close – but not before.

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