After a tense week of back and forth deliberations between the Senate and the Assembly, and Republican and Democratic leadership, a budget proposal began its final journey towards the Governor’s Desk.

As discussions took place this week at the highest levels, it was unclear what each side was proposing, what rumors were accurate and what, if any, hit the California State University would have to take to close out this year’s budget.

Various scenarios were rumored to be circulating in the Capitol, including a potential reduction of the four percent growth to the CSU’s base by one percent, or about $27 million dollars. This reduction would have required almost all of CSU’s collective bargaining contracts with labor groups to be reopened immediately.

The CSU along with the Chancellor, trustees, campus presidents and alumni are working hard on this effort and have continued to make the passage of the state budget with the CSU allocation in tact a priority. In response to these rumors the CSU sent a jointly signed letter with the California Faculty Association, the California State Students Association, the California State University Employees Union, the Academic Professionals of California, and the State Employees Trade Council requesting the legislature retain the funding approved by the Budget Conference Committee earlier this year. Chancellor Charles Reed then followed up that request by participating in a California Faculty Association press conference asking for the CSU’s budget to not be reduced further.

Eventually, it became clear that the CSU would be saved from this cut but that in order for a budget to be passed with enough Republican and Democratic votes, the legislature would need to provide tax breaks to the movie industry, tech companies and others of possibly $500 million. It also sought to shift $1 billion in transportation funding from local projects back to the State’s General Fund. The proposal made other reductions to social services and drug treatment programs as well.

The Assembly passed the Budget Conference Committee’s measure, SB 77 (56 Aye votes, 23 No votes) and because the budget document is 784 pages long, the Assembly placed their amendments to win Republican votes in a secondary measure, SB 78 (59 Aye votes, 20 No votes). Both of these measures, along with 14 trailer bill measures, were passed out of the Assembly in the middle of Thursday night/Friday morning. The Senate met Friday to debate the Assembly’s package internally but was unable to come to a compromise. The Senate did not vote on the Assembly’s version of the budget, therefore it failed (25 Aye votes, 14 No votes). The Senate needed 27 votes to pass the budget. Senator Perata then instructed the Senate Republicans to produce a budget that would secure an Aye vote from all 15 of their members and he’d see if there are 12 Democratic votes for passing the budget. The Senate is expected to take up a vote on Wednesday. If they can get a budget passed on Wednesday it will be moved to the Governor’s desk and the Senate will leave for their summer recess with both houses returning to work on Monday, August 20.

For more information on the budget, the Legislative Analyst’s Office provided the 2007-08 Budget Package.