Well, we have a State budget. Or do we? With breaking news that at least one of the Legislative leaders, Senate President Pro-Tem Darrell Steinberg (D-Sacramento) is going to sue the Governor to try and overturn the Governor’s recent budget vetoes, Sacramento seems to be moving into yet another phase of governance chaos.
At least one news story reports that Assembly Speaker Bass (D-Los Angeles) is in jeopardy of losing her Speakership position because the budget she helped cobble together reached the Governor in a form that required he veto nearly $ 1 billion in order to come close to balancing it. Thus, the Governor was handed either a great opportunity, or a tremendous burden, depending on one’s viewpoint.
The Governor used his veto pen, whacking several programs that have been important to both Speaker Bass and Senate Pro-Tem Darrel Steinberg (D- Sacramento) and many who support them politically. Those programs include child abuse and child health services. Advocates for those programs are currently seeking support from Bass and Steinberg to make a run at the Legislature to over-ride those vetoes when the Legislature re-convenes later this month. A 2/3rds vote of the Legislature would produce an over-ride. Whether such a veto over-riding proposal sees the light of day in the Legislature will depend on the will of Bass and Steinberg to take on the Governor and endure the possibility of even more distasteful gubernatorial budget cuts to offset any such restoration.
Then comes the news yesterday (Friday) that Steinberg may sue to reverse the Governor’s veto. Steinberg claims the Governor exceeded his constitutional authority so a lawsuit is appropriate. The radio news reported that Bass may join Steinberg in such a suit. Is it for real, or is it a CYA by Steinberg and Bass because their leadership positions are in jeopardy because of this budget morass?
In the meantime reports are that State revenues continue to run below the level assumed in this brand new budget. This is producing more talk about another California budget crisis as 2009 draws to a close. Moody’s, the investment and bond rating agency, lowered California’s bond rating earlier this summer. Then it announced in mid-July that it believes California’s new budget is not very solid and the future does not look good. In a July 31 San Francisco Chronicle story Emily Raines, Moody’s vice president, is quoted as saying “the plan adopted this week may stop the state’s credit rating from dropping further”, but added that eliminating the deficit “was achieved through a combination of cuts, raids on local funds, accounting maneuvers and one-time revenues that leave the state poorly positioned for budgetary balance in future years.”
Not to be overlooked is the fact that Moody’s is being sued by the State employees retirement system known as CalPERS claiming Moody’s investment rankings have been “wildly inaccurate” resulting in those who relied on them, such as CalPERS, losing a lot of money. Old timers may remember that Moody’s was similarly accused when fingers were pointed in the 1994 County of Orange bankruptcy.
Also keeping the political pot boiling, there are people with plans to take out papers to seek enough voter signatures to put an initiative on the ballot to turn the full time Legislature into a part time body, such as that found in Texas and Nevada. Whether the impetus for such a movement is revenge or truly pursuit of some kind of Holy Grail of legislative efficiency, those in the Legislature are increasingly aware that the voting public is not happy with them. Thus the belief by some that the Steinberg (and possibly Bass) threatened lawsuit is as much a CYA move as anything else.
It gets worse. Some unionized State employees have voted to strike because the budget imposes furloughs and other benefit losses, and the public is beginning to see even worse than normal levels of service from its State government. And, the newspapers are reporting that a federal court has ordered California to fix its over-crowded prison system within 2 years or risk a federal takeover, leaving the State with no control but with 100% of the cost.
Has anyone noticed those ads being run on T.V by the State of Nevada seeking to lure businesses to flee California and locate to Nevada where taxes either do not exist at all (Individual and corporate income taxes) or are comparatively low? Even my Southern California high school has scheduled its next reunion out of State. Their timing couldn’t be better.
Good summary. As I recall, Moody’s was also fingered in the AIG and mortgage debacles for unrealistic ratings.
I think it’s a good, but not strong, possibility the bankruptcy is an option — I’m not sure it’s precisely legal, but it wouldn’t be the first time that the Legislature’s done something shady.
I’ll bet the raids aren’t over, unemployment will get worse and Arnold will just get more deeply into short-timer mode. In all, we’re circling the drain. The vultures are loitering over the State that was once the envy of the nation until it got overrun by illegals, liberals and union goons. We’re basically finished, the tubes just haven’t been removed yet.
Also, the local school districts like the SAUSD are holding the stimulus money in a bank/reserves as ordered by Bill Habermehl (OC Dept of Ed)…he’s another one who I want gone (recalled)
Schools and locals were smart to not allocate the Stimulus money until they had an idea of how much Sacramento was going to cut. You cannot budget effectively without knowing what you are going to have to work with.
Jill, Habermehl, the elected County Superintendent of Schools, is running for re-election in 2010. See http://www.reelectsuptbill.org. This should give other candidates and voters such as yourself their chance.
Yes, Jim but the feds didn’t say that they could do that did they? They said it was to save jobs not bank it until the ca lawmakers decided what they were doing.
Just a small correction, regarding the people taking out papers for a part time legislature, there is an organized effort led by Citizens for California Reform, a non partisan general purpose political action committee, to return the California Legislature back to part time basis as they were prior to 1966. The request was filed with the AG’s office on May 20 and released to the group on July 10 with authorization from the Sec of State to begin the collection of signatures on the petition. The initiative is a Constitutional Amendment called the Citizen Legislature Act to return the Cal Legislature back to part time. We need 1 million signatures on our petitions by Dec 7, 2009 to qualify for the Nov 2010 ballot. We have had an overwhelming response to our petition drives. This is not revenge; this is an active effort, grass roots driven, to break down the political class in Sacramento and the stranglehold of lobbyists, special interests and full time legislative staff. One small step for government reform, one giant leap for local control. visit http://www.reformcal.com download petitions, get signatures and let’s get this passed.
States can file for bankruptcy. I don’t see how we have any choice at this point. The union contracts and related-choice inhibiting legislation need to be struck down. Wasteful programs need to be cut – for example the State does not need a separate OSHA, FDA and NRC that duplicate and expand the federal programs.
And while we’re at it we should implement a unicameral (one-body) legislature. Part-time wouldn’t hurt either.
Why shouldn’t businesses move to NV given all the business punitive regulations, fees and taxes that have been implemented by needless agencies and petty bureaucrats and bought and paid for legislators?
Now that some time has passed, let’s see what “improvements” came as a result of Democrats ruling all 3 offices: hmm, NOTHING! And Governor Moonbeam and his donkeys keep braying and screwing us over. The best thing that can happen would be a recall against Governor Moonbeam and his pet boi Gaffing Nuisance.