California's
2003-04
State Budget deficit
is not only the largest of any state in the country, it is bigger
than the combined deficits of all other states, excluding New
York.
The problem
is so severe that one might think state legislators are working
around the clock to generate some type of agreement or solution
to the estimated $35 billion-plus deficit. But they are not.
With a little
more than two months left in current fiscal year, members of the
Legislature have approved a mere $3.3 billion in cuts to the 2002-03
State Budget, even though Governor Gray Davis had requested cuts
on the order of $10 billion in December 2002.
The Assembly
Democrats last week released their attempt at fashioning a state
budget plan to assist the one that Governor Davis released in January,
and that he is scheduled to update in mid-May (also known as the
Governor's "May Revise").
Assembly Speaker
Herb Wesson's plan dubbed the "April Package" creates
$2.5 billion in additional cuts and deferrals, $2.2 billion in pension
obligation bond funding, and $1.2 billion in other fund shifts,
fees, transfers, and loans for a total of $5.9 billion.
Among the many
items contained within the April Package, the Assembly Democrats
have proposed shaving off $911,000 to eliminate the North Coast
Watershed Assessment Program within the Department of Fish and Game,
taking $682,000 from the State
Water Resources Control Board (SWRCB) to reduce underground
storage tank cleanup oversight, and transferring $1 million to the
state's General Fund from the Department of Health Services' Drinking
Water Treatment & Research Fund.
In a surprise
development, Assembly Democrats have not proposed repealing special
district Educational Revenue Augmentation Fund (ERAF) exemptions,
although redevelopment agencies took another large hit with an unallocated
cut of $100 million. And none of the following higher profile items
have been earmarked for reductions:
The political
mood inside the state Capitol has completely soured. In fact, the
Assembly Democrats, who need at least six Assembly Republicans to
jump ship and vote with the majority to reach the needed super majority
of two-thirds, did not release their proposal to the minority party
until after they held a news conference and lobbyists already had
several copies of the document.
Insiders are
reporting that this budget may not come together until October and
that is bad news for the state. Controller Steve Westly has announced
that the state will need to borrow between $9 billion and $11 billion
this spring through Revenue Anticipation Warrants (RAW), which is
the maximum amount allowable for California.
For any district-specific budget questions, please contact State
Legislative Advocate Wendy Ridderbusch
at 916.441.4545.
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