Round 2

Jun 29, 2011

The Legislature -- again -- approves a state budget and sends it to the governor's desk. The Democrat-engineered document depends on a gamble -- that revenue projections will be valid, and that enough  money will come in to block the need for a new round of cuts.

 

From the Chronicle's Wyatt Buchanan and Marisa Lagos: "After months of fits and starts, the state Legislature approved a budget package Tuesday night to close what was once a $26.6 billion deficit - giving the state a spending plan before the start of the fiscal year and ensuring that lawmakers once again will receive their pay."

 

"With remarkably little debate, both houses of the Legislature passed the eight bills that made up the final pieces of the state budget plan. Passage in the Senate was stalled over a controversial plan to eliminate and replace redevelopment agencies, but two Democratic holdouts gave their support after the Senate leader leaned hard on them for their votes."

 

"Gov. Jerry Brown is expected to sign the measures soon, which bring general fund spending to $86 billon for the fiscal year that begins Friday, down from the current year's $91.5 billion."

 

It's a new budget but the same-old problem, a spending plan that rests on the unknown. HealthyCal's Dan Weintraub examines the details.

 

"That’s a big assumption, and if it doesn’t pan out, up to $2.6 billion in spending cuts will be automatically triggered early next year."

 

"But even if the tax revenue grows as much as the Democrats hope or the spending cuts are implemented, the state will almost certainly face a multi-billion shortfall a year from now."

 

"Tuesday’s budget plan, combined with more than $10 billion in spending cuts adopted in March, is expected to permanently erase about $21 billion of a $27 billion budget shortfall the state faced last winter, legislative leaders estimate."

 

"About $9 billion of that $21 billion comes from higher tax revenue – most of it either money already collected this spring that exceeded earlier projections or new estimates of higher revenues in the coming year. About $700 million will come from higher fees on vehicles and on home insurance policies, to pay for fire protection in state wildlands.

 

"About $12 billion of the solution will come from cuts in spending or in projected spending levels."

 

Others on the budget: The LA Times' Shane Goldmacher, the Bee's Dan Walters, Reuters' Jim Christie, CalBuzz's Trounstine and Roberts, the Contra Costa Times' Steve Harmon.

 

Meanwhile, a group of GOP lawmakers have called for an investigation into whether Controller John Chiang has the legal authority to dock lawmakers' pay.

 

From Jim Sanders in the Bee: "Five Assembly Republicans asked the state's top law enforcement officer for a legal opinion Tuesday on whether state Controller John Chiang has authority to block legislative pay."

 

"The five lawmakers asked Attorney General Kamala Harris whether Chiang has the right to determine whether a budget plan is balanced and, if he says it is not, whether he can stop lawmakers' pay."

 

"We are concerned that this issue is likely to return in future budgets proposed by the state Legislature," said the letter, which does not seek to regain the $4,830 in pay that each lawmaker had lost through Monday."

 

"Signers were Republicans Donald Wagner of Irvine, Allan Mansoor of Costa Mesa, Diane Harkey of Dana Point, Chris Norby of Fullerton and Mike Morrell of Rancho Cucamonga."

 

Jerry Brown, who as governor decades ago stood with the late Cesar Chavez as he signed the law allowing collective bargaining for farm workers, has vetoed the UFW's most important priority --  legislation that would make it easier organize farm laborers.

 

From Patrick McGreevy and Anthony York in the LA Times: "The proposal has been the top legislative goal for years for the United Farm Workers, whose founder, Cesar Chavez, had strong ties to Brown. It would have allowed the union to bargain for employees without holding an election — by simply collecting signatures from a majority of workers on cards saying they wanted representation."

 

"Gov. Arnold Schwarzenegger vetoed similar measures four times during his seven years in office. Supporters of the latest bill had been hopeful that Brown, a Democrat who often spoke of his relationship with Chavez during his gubernatorial campaign last year, would approve it."

"In his veto message Tuesday, Brown cited his work with the union 36 years ago."

"I am not yet convinced that the far-reaching provisions of this bill … are justified," Brown wrote.

"Union leaders reacted angrily."

 

And from our "Frequent Flyer" file comes the tale of the 'underwear traveler,' a guy who really gets around. No problems with the metal detector, either.

 

"It seems that the mystery man recently allowed to fly on a US Airways flight wearing little but women’s underwear has been spotted at numerous airports around the country in a variety of similarly skimpy outfits."

 

"Late yesterday, readers sent msnbc.com more photos of the flashy-flier and pointed out videos of him that have been posted on YouTube. The San Francisco Chronicle also published an interview with the photogenic passenger on the condition that it not publish his name."

 

"It turns out he’s a business consultant who flies as a preferred customer on US Airways and often dresses in female clothing to make business travel more fun."

 

"It has never been my intent to put people in a situation where they feel uncomfortable," the man told the Chronicle during a phone interview. "I try to respect other people's opinions. As long as my dress is not indecent from a legal perspective, and so long as the airline does not object, I have the right to wear what I wear. And others have the right to wear what they want to wear."