Legislature: No recess—but also no budget
Analysis from CSBA’s Governmental Relations Department
Published: August 3, 2010
The June 30 constitutional deadline to enact a state budget for 2010-11 has come and gone without a spending plan. The state Legislature’s scheduled summer recess for July was officially canceled, but legislative leaders did allow lawmakers to spend July in their district offices.
Efforts to bring all parties to an agreement on a budget continued, and there has been some progress made among Democrats. Assembly Speaker John Pérez, D-Los Angeles, and Senate President Pro Tem Darrell Steinberg, D-Sacramento, agreed on some overarching principles that include not reneging on last year’s agreement to establish a Maintenance Factor and funding schools in accordance with Proposition 98. While both are positive messages, it is important to view the latter carefully because funding for schools under Proposition 98 can vary widely depending on revenues.
Revenues are the point on which the entire budget hinges, and an increase in revenues must be included in any budget accord. This is the basis of disagreement between Democrats, who want to protect social safety-net programs and avoid the cuts to schools proposed by Gov. Arnold Schwarzenegger, and Republicans, who oppose any tax increases as threatening further harm to the economy.
Until that chasm is bridged, the situation outlined in previous CSBA budget updates remains the status quo. Hopefully, negotiations with all parties continue in earnest when the Legislature reconvenes Aug. 2 for the last month of this two-year legislative session. Otherwise, it could be a long summer—and maybe fall—as uncertainty over school funding continues.
Easy link:
CSBA budget updates are available
here, under "What's New."