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| Office of the Chancellor / Public Affairs |
Monday, April 5, 2004
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Sacramento Bee 4-5-04 State not paying all its dues |
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Since the budget crisis hit, California has stopped paying nearly $1.7 million in annual membership dues it owes to various national organizations ranging from the National Governors Association to the Pacific Fisheries Legislative Task Force. Some of the groups have allowed the state to maintain its memberships or enter payment plans, but as a result, California is ringing up a hefty bill as the outstanding dues continue to accrue. Other groups are suffering financially without help from the largest state - including one conservation group that was forced to shut its doors. Though the amount is a small fraction of the state's budget problem, and lawmakers argue it is a sound way to trim costs without cutting into services, it is emblematic of a common approach to easing state budget woes: pushing them off into the future and failing to make permanent changes to reduce California's costs. "Maintaining our membership in these organizations is important, but it certainly is not the highest priority or close to the highest priority," said Assemblyman Darrell Steinberg, D-Sacramento. "These are difficult times, and every dollar counts." The state paid $1.7 million in dues to 12 groups in the fiscal year that ended in June 2002. Last fiscal year, which ended in June 2003, the state paid less to most of the groups, even paying half of the amount owed to certain groups. In the current budget that ends June 30, and in the governor's budget for the next fiscal year, the state is scheduled to pay nothing to any of the groups. The budget states, however, that "the state has retained its memberships and the outstanding fees and dues continue to accrue." "At a time when we are asking virtually every aspect of state government to provide savings, this item didn't rank as high a priority for us to fund next year," said Department of Finance spokesman H.D. Palmer. "At a time when the economy gets better and the budget picture gets better, then we will look to be funding those." The cut is among many temporary fixes that nonpartisan Legislative Analyst Elizabeth Hill has said will contribute to California facing billions of dollars in shortfalls in coming years. And it is one that could cost the state more in future years. The groups range from large organizations whose membership includes every state - such as the National Governors Association and the National Conference of State Legislatures - to smaller environmental groups. The state, for example, paid $157,000 in 2001-02 to the NGA, a group that allows governors to work together to solve issues facing all of the states. This year, the state is slated to pay nothing to the group. "Our hope is that we work with them and when the economy begins to turn around, they can ... become dues-paying members," said NGA spokeswoman Christine LaPelle. LaPelle said California is one of a handful of states, including Texas, that have halted paying dues because of budget woes. California paid the NGA half of its $161,000 in dues last year, and is not planning to pay at all this year and next. That would leave the state with a $400,000 tab with the group come July 2005. The NGA has been forced to trim costs as states struggle to pay their dues, but it has not scaled back its services to governors. Other groups have been less fortunate. A group called For the Sake of Salmon, which helped governments in Western states work with utilities, agriculture and other groups to help preserve the salmon population, is closing its doors next month because California and Oregon stopped paying dues that made up about a fifth of the budget. "Between the two states, about $110,000 just disappeared out of our budget, and it was money that we could use to meet our overhead costs," said Executive Director Jim Rapp. "It was very, very hard money to make up." Gene Rose, public affairs director for the National Conference of State Legislatures, said the group is holding out hope that California will pay its $441,000 dues this year and is working out a payment plan with the Legislature. Last year, the state paid only half, and Gov. Arnold Schwarzenegger's budget does not provide for the state to pay the dues this year or next. But Sen. Debra Bowen, D-Marina Del Rey, said that the Legislature paid some of the dues from its budget this year to ease the pressure on the general fund. "That's basically been part of the way that the Legislature has contributed to the budget solutions, by paying for things that would have otherwise been paid by the general fund," Bowen said. Rose said the national legislative organization lobbies the federal government on behalf of states, and last year helped California win $10 billion in federal funds from the federal tax breaks. "Based on that information, we believe we are a bargain," Rose said. Steinberg said he believes the state should continue holding back dues for such organizations, and focus on saving services. "Frankly, when you look at the larger context here and what the
implications are for a lot of people in great need," he said, "this
doesn't rise nearly to the level of some of the other issues that we need
to grapple with in this budget." |
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These news clips are provided by the Public Affairs Department of The California State University. They are intended for the internal use of The California State University system and should not be redistributed. Questions and submissions may be sent to publicaffairs@calstate.edu. |
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