Superior Court says Controller not arbiter of “balanced budget”

by Brian Leubitz

In what was a pretty watched decision, a Sacramento Superior Court Judge struck a victory (?) for the legislature:

In a bitter feud during last year’s budget battle, Controller John Chiang determined that the budget passed by legislative Democrats was not balanced. Using new powers he believed he had under voter-approved Proposition 25, Chiang then blocked lawmakers’ pay and expense money for 12 days until they cut a budget deal with Gov. Jerry Brown.

In a tentative ruling today, Judge David I. Brown said that the controller does not have discretion to determine whether the Legislature’s budget is balanced. Proposition 25 said that lawmakers must approve a balanced budget by June 15 or else lose their pay.

Brown’s ruling essentially says that the Legislature can determine for itself whether a budget is balanced.

“A contrary result could threaten to undermine the Legislature’s essential function,” Brown wrote today.(SacBee)

Here’s the thing with this. If legislators are forced to vote on a budget simply to pay the rent, we are raising a number of troubling questions. Will they be forced to vote for something against their true beliefs, and perhaps against the beliefs of their constituents. It is essentially saying that we think those votes can be bought for a few thousand dollars. It is troubling in many ways.

But that is all an issue with the measure that brought us this. The issue here is smaller, about who controls the meaning of “balanced budget.” This ruling says that if the Legislature says they passed a balanced budget, then they did. And perhaps that is prickly on the gridlock issue, but it is better on the freedom to vote their conscience front.

Well, the legislators sort of assumed that the budget that they passed last week would be sufficient to keep their paychecks coming under Prop 25.  It is something of an interesting legal question as to whether the passed budget has to be “balanced”, but that’s the way Controller John Chiang is reading it.  So, unless a legislator wants to challenge him (good optics there), that’s how it is going to be.  And, today, Chiang said that the majority vote budget from last week was not balanced to satisfy Prop 25:

In doing so, the Democratic controller is exercising unprecedented authority Tuesday, establishing a new role for his office under Propositions 25 and 58 to determine whether a legislative budget is “balanced.”

“My office’s careful review of the recently-passed budget found components that were miscalculated, miscounted or unfinished,” Chiang said in a statement. “The numbers simply did not add up, and the Legislature will forfeit their pay until a balanced budget is sent to the Governor.”

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“The Controller is, in effect, allowing Legislative Republicans to control the budget process and I believe that’s a very unfortunate outcome that is inconsistent with the intent of Proposition 25,” said Speaker Pérez, D-Los Angeles. “In the coming days, we will be taking additional budget action informed by the Controller’s analysis, and consistent with the values of the budget we passed last week.” (SacBee)

Two things are clear, this “balanced” requirement gives the Controller a hefty new power, and it also restores some of the power that Prop 25 took from the Minority.  While the daily well-being of the legislators isn’t likely to be on the line anytime soon, this move does give the Republicans a small bit of additional leverage over the process.

It’s a gimmick, but perhaps a gimmick that changes the playing field just enough to actually make a difference.

UPDATE: Sen Steinberg was no fan of the decision as well, saying “he Controller’s decision today sets a dangerous precedent. The impact on legislative members is real, but it pales in comparison to the impact on school children, the elderly, and the men and women who protect our safety. This decision will not change our commitment and obligation to stand for the people we represent.”