California Budget Update

Update: Sacramento CA. "A Sacramento Superior Court Judge ordered state Controller John Chiang to implement a Schwarzenegger administration plan to furlough state workers two days a month, resulting in a 10 percent pay cut.

Judge Patrick Marlette issued the ruling this morning, rejecting arguments by several state workers' unions that the governor's plan to save $1.3 billion with unpaid time off was illegal and unconstitutional.

Marlette issued a tentative ruling early Thursday and made it final after hearing additional oral arguments from lawyers for state workers in the case this morning.

Marlette's ruling said the state's current budget crisis and lack of funds represented an emergency and the governor's order was "reasonable and necessary under the circumstances." (Sacramento Bee link below).


From the Senate:

Senate Budget Committee Vice Chair, Republican Senator Bob Dutton of Rancho Cucamonga, today issued the following statement after the California Employment Development Department announced the state’s unemployment rate reached 9.3 percent in December:

“No one would disagree that California’s economy is struggling and this state is clearly in a recession. As California searches for effective ways to close a projected $42 billion deficit over the next 18 months, several proposals have been put on the table. One proposal is to cut the number of paid holidays, or 1 holiday plus a personal day, given to state employees. Cutting 2 holidays would reduce the number from 13 to 11.

“Keep in mind most employees in the private workforce get six paid federal holidays.

“The proposal would combine Lincoln’s and Washington’s birthdays into one paid holiday in February and eliminate Columbus Day. That proposal would save the state an estimated $75 million a year.

“I was told that type of cut was draconian."

The entire post can be read here: http://cssrc.us/news.aspx?id=5371

Senate and Assembly Democrats

Members of the Senate and Assembly continue working on a solution to California's budget crisis, meeting daily with the Governor.


Cash Crisis
Without action, California will be $346 million in the red at the end of February, and $5.2 billion in the red in April, according to California Controller John Chiang.

Controller Chiang has announced that cash shortages expected in February will force him to delay some critical payments to preserve cash flow and protect payments the State must make.
more

Californian's Priorities
The latest survey released by the Public Policy Institute of California (PPIC) on January 28 found that Californians support a mix of new taxes and spending cuts to solve California's budget crisis. more

From the Media:

Final ruling: Schwarzenegger can order two furlough days a month 1/29/2009 - Sacramento Bee, By Andrew McIntosh and Jon Ortiz amcintosh@sacbee.com

Spending limits would put government on a conservative course 1/26/2008 - Contra Costa Times, by Steve Harmon
Governor wants to streamline bureaucracy 1/26/2008 - San Francisco Chronicle, by Wyatt Buchanan
Budget Illusion 1/24/2009 - Riverside Press-Enterprise, Editorial
Infrastructure: It's Job 1 to Americans 1/23/2008 - Los Angeles Times, by Frank Luntz
Suspend ballot-box budgeting measures 1/14/2009 - Sacramento Bee, by Daniel Weintraub

State websites:
California Senate Republican Caucus: http://cssrc.us/news.aspx?id=5371

California Senate and Assembly Democratic Caucus: http://democrats.sen.ca.gov/index.asp?Type=B_PR&SEC={2754CE93-A286-4BF3-BF44-53862B9EBE4C}