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No deal, but California lawmakers to begin voting on state budget

Published: Friday, Jun. 10, 2011 - 12:00 am | Page 1A
Last Modified: Monday, Apr. 16, 2012 - 11:41 pm

Gov. Jerry Brown is still trying to close a bipartisan deal with Republicans to place taxes on the ballot and erase a remaining $9.6 billion deficit, but time is running out.

State lawmakers are staring at a Wednesday constitutional deadline to pass the budget. The full Senate is scheduled to debate today without a handshake deal in place.

We answer some common questions below:

Why does Brown need Republican votes? Didn't we pass a measure allowing the majority party to approve the budget?

A two-thirds vote is still required to approve taxes, place taxes on the ballot and take money from redevelopment. Brown's plan to bridge the remaining gap includes all of these items. Republicans say Democrats should solve the budget without more taxes. Democrats say they have already approved more than $10 billion in cuts to universities, health care and welfare.

Besides taxes, what are state leaders discussing?

Republicans are pushing for ballot measures that curtail pension benefits and restrict spending growth. They also want to change some environmental regulations. Democrats are open to these items in exchange for a short-term tax extension and a tax election.

Is an election required to pass taxes?

No. Lawmakers can do so with a two-thirds vote. But Brown promised last year he would not raise taxes without a vote of the people.

I keep hearing lawmakers won't get paid. True?

Under voter-approved Proposition 25, lawmakers must send the governor a budget by June 15 to continue receiving pay and travel expenses. Controller John Chiang, who issues paychecks, said he will pay lawmakers only if they send the governor a balanced plan.

So if no bipartisan deal emerges by June 15, lawmakers won't get paid?

They may still. Legislative Democrats could send the governor a balanced budget that relies on additional cuts and accounting maneuvers to eliminate the deficit.

That would meet the pay requirement, but it would risk a gubernatorial veto, given that Brown has said he will not sign a budget that relies on "gimmicks." Even if Brown vetoes their budget, lawmakers get paid under Proposition 25.

This still seems early. Didn't the budget impasse last until October last year?

Yes. But several factors make this June crucial.

Besides the new pay threat and majority-vote budget power, new legislative district maps today could push lawmakers one way or the other on the budget.

A recent U.S. Supreme Court ruling has pressured lawmakers to reduce the prison population. Democrats say their budget, with taxes to pay for county jail space, is the best way.

Meanwhile, time is short for Democrats to extend higher taxes on sales and vehicles. The higher rates expire June 30. Should that happen, it will be difficult for Democrats to reinstate higher rates. After June 30, the taxes more clearly become increases rather than extensions. An income tax surcharge that Brown wants to reinstate in 2012 has already expired.

Why does this matter?

Tax extensions fare better than tax increases among voters. Convincing voters to pass tax extensions in a special election will be difficult. Getting them to pass tax increases will be virtually impossible, according to polls.

That's one reason Brown and Democrats want Republicans to pass a "tax bridge" that maintains the higher sales and vehicle rates until the election. Republicans say they will not do so.

How likely is another long stalemate?

Less likely than before. If Republicans block tax extensions, Democrats can pursue their own budget and stop negotiating with GOP lawmakers. The question then becomes what appetite Brown has for a budget with accounting tricks and deeper cuts.

How can they solve the budget without taxes?

It would require some combination of cuts and one-time solutions, often dubbed gimmicks. The more gimmicks you have, the fewer cuts required, and vice versa. Senate Democrats have said they would have to cut K-12 schools because they have already cut deeply elsewhere.

Assembly Republicans say the state can spare K-12 schools if it pursues other maneuvers like raiding First 5 and mental health accounts, cutting state worker compensation and contracting out to the private sector for services.

What does this mean for my child's school?

Every district is different, but K-12 schools are on better footing, according to the nonpartisan Legislative Analyst's Office. The state is projecting $6.6 billion in higher revenue based on early signs of income growth. That makes it less likely that lawmakers will cut deeply into K-12 schools.

© Copyright The Sacramento Bee. All rights reserved.


Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.

Read more articles by Kevin Yamamura



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