As everyone licked their wounds, and returned to the state Wednesday, a new Big 5 began talking about the same old problem. Well, with one little twist ... Capitol Weekly reports, "As if the state budget crisis needed to be any more complicated, now the federal government has been dragged into the middle of the state’s ongoing fiscal battles. If you thought the last budget standoff was rough, just wait and see what happens now that the state’s $20 billion budget problem has gone three-dimensional."
"In essence, Gov. Arnold Schwarzenegger needs permission from the federal government to cut billions of dollars from the state budget. The governor outlined his proposals in a quickly-assembled budget revision last week, complete with deep cuts to education and health and human services.
"But to make the cuts he wants, Schwarzenegger will need permission from the Obama administration – and secure that permission over the objection of state Democratic leaders.
The proposed cuts are sure to be a centerpiece of the budget fight to come between the administration and Democratic leaders. And now, President Obama and House Speaker Nancy Pelosi find themselves in the center of the state’s toxic budget process."
Obviously, these guys have a lot to talk about. Roll tape...
"After voters soundly rejected five budget-related ballot measures, Gov. Arnold Schwarzenegger and state lawmakers agreed Wednesday on one thing - they need to act quickly to solve the state's budget woes on their own," reports the Chron's Matthew Yi.
"Schwarzenegger and legislative leaders said Wednesday they aim to find a compromise solution by the start of the new fiscal year on July 1. Leaders have a pressing deadline: Without prompt action, the state could run out of cash to pay all its bills by the end of July."
There are a litany of stories about all the services that are in jeopardy across the state, from firefighting to poision control to higher education and local government.
Around the state, folks are going to feel the pain of budget cuts. Heck, even lawmakers will take a pay cut -- 18 months from now...
The U=T's Jim Sweeney reports, "Legislators and other elected state officials will take an 18 percent pay cut, although that may not happen until late next year at the earliest.
"The California Citizens Compensation Commission, which approved the salary reduction on a 5-1 vote, plans to seek legal permission to impose the pay cuts sooner. Under current law, the reductions could not take effect during incumbents' existing terms, most of which expire in December 2010.
"The commission's vote will shave rank-and-file lawmakers' salaries by more than $20,000 a year, from $116,028 to $95,143. The pay of legislative leaders will drop from $133,639 to $109,584. Tax-free per-diem payments of up to $35,000 a year would not be affected."
But CW's Malcolm Maclachlan reports a new tax break for businesses passed by the Legislature last year may soon give businesses a helping hand.
"When state legislators finally hashed out a budget deal in February, among the concessions won by business interests was the biggest change in California’s corporate tax law in a generation. Defenders of the new method say it will spur investment in the state, while one key detractor said it will have a price tag that will grow past $1.5 billion a year.
At issue is the new “elective sales factor,” a system for determining how much tax a company should pay in the state. Up to now, California’s tax system taxed corporations using a formula based on employment, property and sales in the state, sometimes know as a “triple factor” system."
Meanwhile, CW's John Howard reports on a big environmental fight that has spilled over from the courts into the Capitol.
"The dispute between environmentalists and the South Coast Air Quality Management District has been overshadowed by public attention to the state budget meltdown, the special election and new federal fuel-economy standards. But it is developing into one of the year’s most important air-quality battles, pitting hundreds of local businesses and governments against environmentalists.
"At stake are $4 billion, 65,000 jobs and hundreds of stalled projects, according to
the district, which dispensed the permits.
Senate Leader Darrell Steinberg, D-Sacramento, has urged the governor and Air Resources
Board Chairwoman Mary Nichols to intervene in the dispute.
Legislation authored by Sen. Rod Wright, D-Inglewood, to block the environmentalists was hastily
withdrawn from a scheduled committee hearing, a signal
that negotiations loom. Indeed, the bill was deliberately
yanked on the orders of Steinberg in order to force
face-to-face negotiations, Capitol sources said."
CW also looks at the race for Curren Price's old Assembly seat. "With Curren Price moving over to the Senate officially, the Dem caucus in the Red Carpet Room is back up to 25 members. But in the Assembly, it’s down to 50 until Price’s replacement can be elected. But that won’t happen until well after the budget is passed. At least, we hope we have a budget by then. There are already candidates lining up to replace Price in his Inglewood-area district. The odds-on favorite to replace him is Gardena spokesman Steven Bradford, who reportedly has the backing of Speaker Karen Bass. Inglewood councilman Eloy Morales is also reportedly looking at the seat.
Finally, from our Take the Money and Run Files , "Police launched an international search for two New Zealanders who allegedly took the money and ran after a bank mistakenly put 10 million New Zealand dollars into their account.
"The couple, who operated a gas station in the northern city of Rotorua, applied to the bank for a NZ$10,000 ($6,000) overdraft, but 1,000 times that amount was paid into their account. The two then withdrew some of the money and disappeared, Detective Senior Sgt. David Harvey said."
How come they never tell you about the police pursuit part in Monopoly ?
