California Insider

A Weblog by
Sacramento Bee Columnist Daniel Weintraub

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December 10, 2003

A deal is in sight

I am hearing that an agreement is imminent on the first pieces of a budget recovery plan: a $15 billion bond and a constitutional amendment to establish a rainy day reserve. Details are sketchy at this point but it sounds as if the deal will follow the framework of a proposal first offered by a group of moderate lawmakers led by Assembly members Keith Richman and Joe Canciamilla. The reserve would be established by setting aside a portion of state revenues beginning with one percent in 2006-07 and eventually climbing to three percent, with the reserve itself allowed to build to 10 percent of the general fund. Half the reserve each year would be applied to debt repayment. The measure would also require a balanced budget and create new rules for reducing spending mid-year. Members of the Assembly and Senate have been advised by the leadership to be ready for session by 11 am Thursday.