Conference Committee Meetings Continue -- Action and Recommendation Could Come Any Day
By Paul McIntosh, Executive Director
pmcintosh@counties.org
The Budget Conference Committee has met daily during the last two weeks, hearing testimony from hundreds of people from nearly every program area, including healthcare, social services, public safety, transportation, parks and prisons. With each new day of hearings, the reality of the fallout from the Governor’s proposed spending reductions becomes more evident. And news about state’s budget situation only seems to become more ominous.
The 10-member panel – six Democrats and four Republicans – continued hearings today, meeting to discuss health programs this afternoon. Human services is scheduled to go before the committee tomorrow (Saturday, June 6) and local government and corrections are scheduled for Monday, June8. However, hearings have been running behind schedule and the schedule is very fluid.
Action and votes by the Committee on the Governor’s proposals could come any day. A final recommendation on some of the proposals is expected within the next week. However, it appears unlikely that the Legislature will address the full $24.3 billion deficit at one time. The budget will likely be taken up in two or three phases over the next few months, with the Legislature first taking up cuts that can alleviate the state’s pressing cash shortage.
You may recall that last week state Controller John Chiang said the state would be unable to pay its bills starting July 29 if a budget is not in place by June 15. He said missing that deadline would further damage the state’s ability to borrow and address its immediate cash shortage, and a delay of payments – as experienced in February – could occur again.
The Conference Committee did take action on one item: committee members unanimously voted Wednesday to eliminate entire departments and agencies under the authority of the Governor, including the Office of Planning and Research and the Secretary of Education office. The savings would be relatively minimal, saving at most $25 million, about one-tenth of 1 percent of the budget problem, according to media reports. The recommendation now goes before the full Senate and Assembly.
On Tuesday, June 2, in a rare speech, the Governor addressed the Senate and Assembly, urging them to “spend only what we have.” He stuck to his cuts-only message and said it was the only way to get to the state to live within its means. He told the joint session of the Legislature that California’s economic downturn, the state’s chronic budget issues, and the national recession has created an opportunity for leaders to determine what services the state can realistically provide.
Democrats also held hearings this week on the Governor's proposals and are preparing their own alternatives, which could include increases in the alcohol and tobacco taxes, as well as a severance fee on oil extractions.
Counties should prepare for drastic cuts to programs, but also keep in mind that this is just the beginning of another lengthy budget process.
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