The legislative leaders who labored for weeks trying to find a way to patch the $40 billion budget gap closed last month were quick to react today to LAO projections of a new $8 billion hole.
Senate leader Darrell Steinberg even extended a special invitation to GOP gubernatorial hopefuls Steve Poizner and Meg Whitman, who have been critical of the February budget deal.
Assembly Speaker Karen Bass, D-Los Angeles
"Given the nation's continuing economic problems since we passed the budget, it is not surprising to see the state's revenue projections continue to fall. We must keep a careful watch on revenues during these volatile times, and all of us, Democrats and Republicans alike, must be prepared to continue to make tough decisions should the May Budget Revision also show significant declines in revenue. We also have to keep in our minds the potential that if the ballot measures fail on May 19th, the budget problem grows by another $6 billion."
Assembly Republican Leader Mike Villines, R-Clovis
"Republicans take very seriously the warning issued today by California's Legislative Analyst that our economy continues to deteriorate and revenues continue to decline. We understood when we passed the budget in February that our state's fiscal crisis was not over, and that the Legislature may be called upon to make further spending reductions in the months ahead.
"We agree with the Analyst that further tax increases should not be on the table. When we passed the budget in February, we made it clear that any further budget action we may need to take in the coming months must be done solely through savings to government programs.
"The Analyst's report echoes what Republicans have been saying all along -- that economic recovery and job creation must continue to be an important priority for the Legislature in the coming months. We will continue working to try and pass economic recovery measures that will create more jobs for those out of work and inspire more economy activity in our state."
Senate President Pro Tem Darrell Steinberg, D-Sacramento
"We will solve the challenge outlined this morning by the Legislative Analyst with the same intensity that we solved the $42 billion problem in February."
"It should come as no surprise that the Nation's economic downturn continues to severely impact California's budget - retail sales continue to decline and unemployment continues to rise and American families lost $5.1 TRILLION in the last 3 months of 2008."
"Like thousands of businesses and millions of families, state government has less money to spend."
"But moms and dads will continue to get their kids off to school. Sick people will need an emergency room. There will be fires to put out. Criminals to prosecute. And elderly people to care for."
"Fortunately, the action we took in February makes what we face more manageable."
"For months those who have lobbied us have told us what not to cut, what not to tax, what not to do."
"That time is past. We have entered the post-press release period of our budget crisis."
"I am extending an invitation to both Meg Whitman and Steve Poizner to meet with us. They've both said that as Governor they could close our budget gap without raising taxes. Well now, that's what we need to do and we need their list of cuts and savings."
"We invite any and all people and stakeholders who are skeptical of the magnitude of the challenges we face to step forward with their ideas."
"Senate Budget Subcommittees are already meeting to craft additional changes to the budget. In addition, the Senate Budget Committee will convene in the coming weeks to hear from the Legislative Analyst on this report and what steps we can take to fix this problem."
"We will solve the problem."
Senate Republican Leader Dennis Hollingsworth, R-Murrieta
"The fact that the LAO is projecting a $6 Billion deficit for the 2009-2010 Budget is not a surprise. I said early on this budget was not going to fully solve the problem. We had anticipated the budget shortfall would be around $10 billion, and it still could reach that number."
"Now we need to focus on re-evaluating some of the solutions previously discussed that include helping the private sector create jobs and stimulate the economy. We also need to use any federal stimulus money California receives efficiently and effectively and look at streamlining government by reducing spending. We can't go back to the taxpayer's again to ask them to fix the problem, especially after hitting them with a $1,000 price tag just three weeks ago."
"Clearly, more work is needed and I look forward to working with my colleagues in the Assembly and Senate to achieve that task."
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