Well, it looks like the annual state budget stalemate is worse this year than ever, with Governor Schwarzenegger refusing to sign any budget that doesn't contain budget and pension restrictions with long-term effects, and Democrats insisting on new revenue increases. Schwarzenegger has stated that he will not sign a budget that does not contain his demands, and would be willing to stretch the budget crisis out until the next Governor takes office in January. Senate Leader Darrell Steinberg reacted by stating that unless the budget repeals recent corporate tax cuts, the legislature will also wait until the next Governor takes office. One thing these two rivals can agree on, is that California needs additional federal funding. Steinberg and Schwarzenegger traveled to D.C. to push for additional funds for the state through an extension of the TANF Emergency Contingency Fund among other measures.
Governor Schwarzenegger's approval rating has dropped to 22%, the same as Gray Davis when voters recalled him in 2003 and elected Schwarzenegger. Davis and Schwarzenegger have both been victims of the state's unsustainable structure, but despite the clear fact that the 2/3 vote currently needed to pass a budget is unworkable, Schwarzenegger has come out as opposing Prop. 25, which would solve this problem by mandating a simple majority for budget passage. No wonder former state legislator Hannah-Beth Jackson has declared that the state is ungovernable regardless of who wins the Governor's seat in November.
The state's budget deficit of $20 billion is growing daily, and the state will run out of money by October unless a budget is passed. State Controller John Chiang would begin issuing IOUs by as early as August to save the state's cash for bills mandated by the state Constitution and federal law. With such measures, California's worst-in-the-nation credit rating would likely be even further downgraded, possibly as far as "junk" status, making it even harder for the state to raise funds.
What can we as citizens do? Support reforms to change the state's ungovernable system, remind your state legislators, and the leadership of both parties, that we need a state budget that works for California families, without cutting severely needed services to our most vulnerable
populations. Tell Governor Schwarzenegger not to leave a legacy of an even greater financial crisis for the state by refusing to sign a budget.
Speaker of the Assembly, John A. Pérez
Assembly Majority Floor Leader, Charles Calderon
Assembly Minority Floor Leader, Martin Garrick
Senate President Pro Tempore, Darrell Steinberg
Senate Majority Leader, Dean Florez
Senate Minority Leader, Dennis Hollingsworth
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