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| Office of the Chancellor / Public Affairs |
Monday, July 7, 2003
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Contra Costa Times/AP 7-7-03 GOP budget proposal rejected |
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SACRAMENTO - A Republican plan to balance the state budget without new taxes was shot down Sunday night in the Assembly, forcing California to begin the second week of the new fiscal year without a spending plan in place. In a rare weekend session, lawmakers debated nearly four hours before rejecting the GOP plan 45-27 along straight party lines, with Democrats voting no and Republicans voting yes. Backers said the Republican proposal, which would have cut spending 4 percent from last year, would have protected core education programs, public safety agencies and transportation projects. But Democrats, who hold a big majority in the Assembly, criticized the Republican proposal for slashing health services for the poor and disabled while prohibiting 100,000 children from attending kindergarten. "Balancing the budget on the backs of our young families and young children can't be something we want to do," said Assemblywoman Wilma Chan, D-Oakland. Republicans said Democratic spending habits need to be restrained. "You don't think we can find 4 percent fat somewhere in the budget?" asked Assemblyman Rick Keene, R-Chico. "Do you think Californians believe that?" Although last year's budget stalemate lasted a record 76 days, this year's standoff may prove even more difficult. Already facing a $38.2 billion deficit, the state is operating for the first time completely on borrowed money. The state's fiscal year began July 1, and Wall Street bankers say they are unlikely to loan the state any more funds before a new spending plan is adopted. Officials say the state's cash reserve will last only through mid-August. Without the new budget, the state is unable to make millions of dollars in scheduled payments to schools, community colleges, courts, state suppliers and others. The salaries of the governor, legislators, state appointees and about 1,000 non-civil service employees won't be paid until a budget is adopted, although most of the state's 200,000 workers will continue receiving their full pay, at least for now. The Republican budget plan, first introduced in April, would have borrowed $10 billion to pay off the state's existing shortfall and paid back the loan using existing tax income as well as savings from deep cuts imposed on a long list of state services. Republicans also wanted to impose a spending cap on state spending, connected to population growth and increases in inflation. The plan would also have limited future borrowing. The proposal would have also moved the entry date for children attending kindergarten from December 2nd to September 1st. Supporters say the idea would save $750 million annually for 13 years as the first class moves through the education system. Critics say the concept would hurt low-income families by forcing them to find child care for another year.
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