Senate Republican Leader Dave Cogdill declared legislative negotiations with Gov. Arnold Schwarzenegger essentially dead after an apparently hostile meeting Thursday in the governor's office.
Cogdill, of Modesto, said Schwarzenegger's criticism of GOP members and leaks from "Big 5" meetings between four legislative leaders and the governor have undermined talks.
The Republican governor and legislative leaders publicly blamed one another this week for failure to resolve a $14.8 billion gap in the current $103 billion state general fund budget.
Department of Finance Director Mike Genest estimated the budget gap at $39.8 billion through June 2010. Schwarzenegger's proposed budget – a mix of tax hikes and budget cuts – would reduce the problem through June 2010 to a $19.3 billion, a gap that lawmakers still would have to resolve next year.
Cogdill said he would attend future meetings with Schwarzenegger "out of respect for him and out of respect for his office." But he believes legislative leaders must now broker their own deal without Schwarzenegger.
"I believe that the Big 5 process has been irreparably compromised as a result of comments in the press over the last couple of days, and it's pretty difficult to negotiate in good faith in that situation," Cogdill said. "I just don't see this process as being productive or helpful."
Rather than take offense, the governor encouraged legislative leaders to meet among themselves Thursday, telling them, "You don't need me to be there all the time."
But he also suggested that Cogdill's comments "might be an excuse not to negotiate."
"When you deal with a budget deficit this fiscal year of $15 billion," he said, "you don't look for those kinds of excuses any more."
Assembly Republican Leader Mike Villines, of Clovis, participated in Thursday talks by phone from Washington, where he was traveling for what he described as business meetings and a personal engagement. Villines "shares Cogdill's frustration" with the "Big 5" process, said spokeswoman Jennifer Gibbons.
Schwarzenegger and fiscal leaders have warned that without swift budget action the state will run out of cash in February. Democrats say they are willing to entertain the governor's plan but Republicans have lambasted it because of its tax increases.
The governor openly criticized Republicans on Wednesday, saying they lack specificity in their budget demands and were ill-prepared during past "Big 5" meetings.
"The frictions are old and they don't seem to be getting any better," Cogdill said.
"I would certainly admit that. I think the governor would agree with that. We have very different beliefs on how we need to move forward to solve this problem and how we need to treat the California taxpayer."
Schwarzenegger, meanwhile, held a press conference Thursday to announce appointments to a new committee to examine the state's tax structure.
Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.
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