

$tate Budget Page
2005 Budget Watch:
July 12, 2005 Governor Arnold Schwarzenegger signed the State Budget yesterday and has now published the Summary and Veto Message Package. See the following link for your very own free copy: http://www.dof.ca.gov/HTML/Budget_05-06/Veto_Pkg_05/Veto_Pkg_05_w2.pdf Next hot items on the horizon: 1. The legislative session is still going on and important bills are still under consideration in committees and floor sessions (see our 2005 Bill File for more information). 2. DDS is hosting work groups to discuss major changes to Supported Living Services. 3. Wage Order 5 sunset provisions for overnight shifts in group homes represents potential destabilization of CCF licensed residential services. 4. Self Directed Services public input process for the regulations. 5. October is the first notification scheduled for Part D Medicare prescription drug coverage for dual eligibles. 6. Annual report of the developmental center consumers in the community by Sacramento State University. 7. State’s fight with the federal government on the claw back requirements. 8. $10 billion in major cuts to Medicaid. 9. Continual incremental erosion of the community service system due to years of rate freezes and under funding. 10. Etc. etc. etc. July 5, 2005 They did it! Well almost. The Big Five met over the weekend and today came up with an agreement that looks like it will hold. An earlier agreement did not receive enough support of the Republicans but the leaderships now believes they have the votes to carry this agreement. The Governor "we gained great momentum" working together and that while this is the best budget much of it is thanks to the turn around in the economy that saw "350,000 new jobs in California. Speaker Fabian Nunez said what you see is strong democrat values in this agreement. “On one hand this budget is fiscally sound” on the other hand this budget is compassionate.” More Resources and links to budget stories: Governor, legislative leaders agree on new state budgetJune 22, 2005
Democrats in the legislature are still saying they’re very close to an agreement and now with the Governor saying that the budget related components of the special election do not have to be part of this year’s budget agreement the Democratic leadership is saying they’re even closer. Another factor that may bring about an early agreement is the results of the recent all time low approval rating of the governor. The main message from the governor is that the proposal increases the debt by a couple of billion dollars. Since no budget proposal is legally allowed to run in deficit these charges are controversial. However, the nonpartisan LAO says the governor’s budget will result in about 4 billion deficit and the legislature’s budget proposal will result in about 6 billion dollars (give or take).
Budget in apparent stalemate, Sides disagree on how far they are from a deal. Sacramento Bee June 22, 2005 by Alexa H. Bluth -- Bee Capitol BureauJune 17, 2005
Things just got a little harder in the assembly for passing the budget. As reported in the Capitol Morning Report, “Speaker Nuñez told reporters at the luncheon that he has lost two Democratic votes in the Assembly. One is because Asm. Mike Gordon is undergoing treatment for brain cancer. The other is something Nuñez said he found out Wednesday. That is, Asm. Rebecca Cohn will be gone “for several weeks” for back surgery. Cohn’s chief of staff Cris Forsythe confirmed saying surgery is scheduled for June 20 to “address a long suffering back problem recently exacerbated.” He said she’ll be out four to six weeks. “We need 54 for a budget, and [Democrats are] down to 46,” Nuñez said. “You do the math and we’re seven votes short of a budget. Maybe eight.”
June 16, 2005
Well here we go again. Major papers all over the state are trying to figure out exactly what happened this week with the budget. Republicans were caught off guard by the Democrat’s about face on the budget and voted against it even though the differences are pretty minor. It’s about a 1% of the total state budget. My guess is that the budget will probably move along pretty much on time unless the Republicans and the administration calculate that it is in their best interest politically to hold up the budget. A quicker budget means that our system won’t waste money on expensive interest payments to banks but it also means that the self directed services regulatory process will start much sooner which means that CMS will get the application early than most anticipated. I’ll keep you posted…
June 15, 2005
The Assembly just now adjourned without a budget. The Democrats were unable to get the necessary 2/3 votes for the budget and AB 6 (the tax proposal to help fund some of the education gap). Unless agreements are reached by the leadership sometime this week they will reconvene next week.
This article is very interesting. Most bets are on a late budget September...October...even December. However, this article says the Democrats may be willing to settle on the budget so they can focus their attention on the Special Election. Some articles have indicated that the special election could drastically reduce the democrat’s power in