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| Office of the Chancellor / Public Affairs |
Thursday, May 29, 2003
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Oakland Tribune/AP 5-29-03 Senate committee OKs $100 billion budget plan |
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| In an effort to meet a June 15 deadline, the Senate Budget Committee approved Wednesday a near-$100 billion budget plan that protects funding for schools and social services as well as health care programs for the poor. The spending plan, passed by the committee's Democratic majority without any Republican support, is not considered a final draft but rather a framework from which lawmakers can work and negotiate. The action comes one day after a similar budget proposal was approved by the Democrat-controlled Assembly Budget Committee. The attention will now turn in the coming weeks to conferences between the two parties and members of both houses where a final budget is hoped to be completed. The state constitution calls for a budget to be adopted by June 15 -- a deadline rarely met in Sacramento. But some lawmakers say there is real motivation to get a budget on time this year, given the state's record deficit and the millions of dollars that could be saved by acting on time. "I'm optimistic," said Sen. Wes Chesbro, the committee's Democratic chairman. of the budget committee. "Speaking for Democrats in the Senate, we are going to meet our commitment of getting a budget as close to acceptable as possible to Republicans by June 15 -- whether we can then get two-thirds or not, we'll see." The senators are silent on how they would pay for their budget program. Most Democrats have expressed support for the governor's plan to raise about $8.3 billion in new taxes, but Chesbro said those issues will be negotiated with Republicans later. California is one of the few states that require a two-thirds approval of the budget and Republican support will be needed to finish the budget plan. But so far Republicans have said they will not support any budget that requires new taxes. "These are small steps, I appreciate that -- but the problem is still very great," said Sen. Dick Ackerman, R-Tustin. "We will continue to work with (Democrats) but the message is clear, no new taxes." In the wake of a national recession a steep drop in tax collections, the state will end this fiscal year in July with a shortfall expected to be $10.7 billion. The spending gap could grow as large as $38.2 billion by July 2004, although legislative actions so far this spring have trimmed about $14 billion from the total. Gov. Gray Davis' proposed $100.4 billion spending plan includes about $18 billion in cuts and savings and $8.3 billion in new taxes. Davis also wants to wipe out the state's current deficit by borrowing about $11 billion and paying the debt back with money raised by a new half-cent sales tax.
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