Since budget negotiations broke down last month, Gov. Jerry Brown and lawmakers are searching for new ways to solve the state's remaining $15.4 billion deficit. Kevin Yamamura of The Bee has hosted three live chats at www.sacbee.com on the state budget in recent weeks; here are highlights from the discussions. Find the full chats on the Capitol Alert blog at blogs.sacbee.com/capitolalertlatest.
When will Gov. Brown reveal which programs get cut if the tax hikes are defeated?
Brown will have to issue a May Revise budget in early May that shows how he'll balance the remainder of the state deficit. He could always choose to do so beforehand for political reasons.
Do you think the state will have to resort to issuing IOUs later this year?
I think state Controller John Chiang last year tried to avoid IOUs - and did so, even as the state didn't enact a budget until Oct. 8. It all depends on what our tax revenues look like and whether Chiang has enough other options at his disposal.
Any talk about taking up the redevelopment bill again?
Democrats have examined ways to eliminate redevelopment with a majority vote, but that idea is flawed. They can eliminate with a majority vote, but they can't save the full $1.7 billion because they can't tap the property taxes dedicated to local governments without a two-thirds vote. At this point, it seems that they are inclined to wait on a redevelopment vote.
What is the latest on revenues and a June or November ballot initiative?
The June election is dead, while it's getting awfully late to collect signatures for a November initiative. Seems to me that if an election happens this year, it gets done through the Legislature rather than via signature.
But we're hearing of increasing reluctance around the building - except from the Governor's Office - about having an election at all. Democrats saw June as their best chance to persuade the voters to pass taxes, as well as the best way to lock down a budget solution before the new fiscal year.
Your opinion on what's going to happen, since you observe the budget process every day?
I said (previously) I thought hopes for getting taxes in June were dim, and that we might be headed for a protracted budget fight as in years past. I still believe that we will return to a more normal budget debate in the months ahead. One major difference is that Democrats have majority-vote authority on budget appropriations (but not taxes). We'll see how much more they rely on that, and whether that changes the dynamic this spring and summer.
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Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.


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