| Have you felt something missing in your life? Tired of reading the news and not seeing competing screeds about the state budget, or temper tantrums from the Governor, or puddle-of-goo "can't we all get along statements" from responsible punditry or centrist good government groups?
Well, fret no more, ladies and gents, because the California budget crisis is back, and with an all-new "the state can't secure short-term loans" finish!
Two weeks after California enacted its 2008-2009 spending plan, turmoil in the financial markets and flagging tax revenues are forcing lawmakers and Gov. Arnold Schwarzenegger to reopen budget talks.
Capitol sources say a special session for new budget action is a serious possibility.
Legislative leaders and the Republican governor are scheduled to meet Wednesday to discuss options for dealing with the state's worsening financial picture. The state relies heavily on personal income tax and sales tax to generate revenues, and state officials fear both sources will be significantly weaker than predicted when crafting the recently signed budget.
At the same time, the state needs a $7 billion short-term loan to have enough cash until the spring, when tax revenues are heaviest. While state officials have more confidence that they can obtain the loan in the wake of a $700 billion federal bailout plan, they have not tested the credit market since Wall Street faltered in late September. State Treasurer Bill Lockyer plans to do so next week.
Revenues appear to be down more than 10% across the board from initial projections. And there's the looming budget-buster in the form of a Constitutional mandate to provide adequate prison health care:
SAN FRANCISCO -- U. S. District Judge Thelton Henderson scolded state officials today for refusing to furnish $8 billion requested by the overseer of prison healthcare to improve the medical system in state lockups.
Henderson, who appointed J. Clark Kelso as the receiver in charge of prison healthcare, said the state had agreed repeatedly that prisoners were dying needlessly and that the system needed to be fixed. But Henderson said politics appears to be getting in the way. The Legislature rejected Gov. Arnold Schwarzenegger's proposal this year that the state borrow most of the money Kelso wants.
"I am left with the impression that this . . . is the result of nothing more" than politics, the judge said.
You are left with the right impression!
I wouldn't expect this special session to be called until after the election, though the Governor may want to put this into action while lawmakers are vulnerable, so you never know. With Republicans cratering nationwide, clearly the Governor would want to call a session while his legislative firewall of Yacht Party Republicans is still intact.
The ink barely dried on George Skelton's "see, the Legislature isn't all THAT bad" column when this latest proof of their irresponsibility on the budget came to light. It is more incumbent than ever that Democrats capitalize on the progressive wave and get as close to that needed 2/3 majority as possible so that we can deal with structural budget reform once and for all. |
