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| Office of the Chancellor / Public Affairs |
Tuesday, June 24, 2003
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Contra Costa Times 6-24-03 California budget impasse persists into crunch time |
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| SACRAMENTO - With one week to go until the deadline for a new budget, state lawmakers remain split over how to cover a massive deficit and are making no progress toward a compromise. As a result, California appears certain to begin the fiscal year without a spending plan. That would force the state to cut off payments to vendors, legislative employees and college students receiving Cal Grant aide. In addition, local governments would quit receiving gas taxes to fund road projects. Perhaps most important, entering the new fiscal year without a budget would leave the state unable to borrow money, ensuring a cash crisis within a couple of months. "It's not impossible now, but I think it's extremely unlikely that we are going to pass a budget by July 1, and I'm very disappointed about that," said Assemblyman Keith Richman, R-Northridge. Richman joined Assemblyman Joe Canciamilla, D-Pittsburg, to suggest a compromise last week, but no other lawmakers embraced it. On Monday, Democrats disclosed plans for maneuvers in coming days that critics said would do nothing to bridge legislators' differences. The Senate is scheduled to vote today on a budget plan that would increase the sales tax by a half-cent to pay off this year's $10.7 billion shortfall but would not include other taxes recommended by Gov. Gray Davis. Sen. Jim Brulte, R-Rancho Cucamonga, the GOP leader in the upper house, said Republicans would not vote for the sales tax hike. Meanwhile, Assembly Democrats will fan out across the state today to campaign for higher taxes. They are taking their message primarily to Republican strongholds. "No one wants to raise taxes, but Californians deserve better than a budget that forces cities and counties to lay off thousands of police and firefighters," Assembly Speaker Herb Wesson, D-Los Angeles, said in a written statement announcing the tour. After two days on the road, Democrats intend to return to Sacramento and call for a vote on a spending plan with taxes. They need six Republicans in the Assembly to back the plan to reach the two-thirds majority required for passage. But like Senate Republicans, the Assembly GOP members say they are united in opposition the tax increases. Canciamilla, who established a bipartisan group of legislators with Richman to push for a budget on time, said he is discouraged. He is the only Democrat not taking part in the pro-taxes campaign. "Trying to convince them (Republicans) that we need a series of additional taxes on top of the vehicle license fee, on top of the sales tax, on top of the other taxes, I just don't see it," Canciamilla said. "It's not practical." The governor scheduled a meeting for this afternoon with the Legislature's top four leaders to discuss the budget. So far, however, the "Big Five" meetings have made little headway. Brulte, who has threatened to campaign against any Republican who votes for new taxes, said he thinks a budget can be passed before July 1. But hopes are dimming. "You have Assembly Democrats starting their tax-and-spend tour and Senate Democrats starting with their Act IV of jamming Republican leadership with a budget they don't like," Brulte said. Looking for a bright side, Brulte said Democrats' failure to pass a budget with taxes this week could trigger a new round of negotiations. Richman was more pessimistic. He said it might take a cash crisis in August, when the state will run out of money to pay its bills, to propel lawmakers to compromise. "The issues today are no different than they were four months ago or six months ago," Richman said. "I don't know what it's going to take to get people to come to a resolution."
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