• California,  California Budget,  California Legislature,  Jerry Brown

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

    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.

  • Arnold Schwarzenegger,  California,  California Legislature

    California To Be Out of Money in February

    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.

    Stalemate.

    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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