Legislative leaders emerged from a two-hour budget meeting with Gov. Arnold Schwarzenegger this morning with little optimism that an agreement is imminent.
Schwarzenegger spokesman Aaron McLear said it is possible the "Big Five" will reconvene later today.
None of the participants would reveal the substance of the discussions, but sources involved in the talks have said the leaders are focused on a plan that would triple vehicle license fees in exchange for dollar-for-dollar budget cuts plus a spending cap that would go on a future ballot. The higher fees could raise about $4 billion in the current budget year.
That plan has huge political obstacles, however, as Republicans remain opposed to tax increases and have no guarantee that voters would approve the constitutional spending cap they desire, even if Democrats agreed to put it on the ballot.
"We certainly don't want to do anything that will cause (economic problems) to worsen, and we're trying our best to find ways not to do that," said Senate Republican Leader Dave Cogdill of Modesto.
Time is running out in the special session that the governor called earlier this month for emergency action to help close what has been estimated at an $11.2 billion budget gap for the fiscal year that ends June 30. The gap over the next 19-plus months is estimated at nearly $28 billion.
Legislative leaders believe action needs to occur before the Thanksgiving holiday. The new Legislature will be sworn in Dec. 1, and Schwarzenegger is expected to call a new special session immediately to continue work on the budget.
Incoming Senate President Pro Tem Darrell Steinberg of Sacramento said he anticipates the leaders will work through the weekend in hopes of striking an agreement in very difficult negotiations.
Schwarzenegger proposed a temporary sales tax increase, expanding the sales tax to some services, a $2.5 billion cut to K-12 schools and community colleges and further cuts to Medi-Cal, welfare and other social service programs.
Though Schwarzenegger reduced the vehicle license fee as one of his first acts upon taking office, McLear said that would not preclude the governor from taking whatever action he felt appropriate to bridge the current gap.
"Politics doesn't come into play for the governor," McLear said. "His focus is trying to solve this budget crisis as quickly as possible and doing what's right for the people of California."
About Comments
Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.