Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts

Thursday, June 16, 2011

Legislature Sends On-Time Budget to Governor - Courts Take $150 million Added Hit

The Legislature achieved its objective of sending Governor Jerry Brown a theoretically balanced state budget by the Constitutional deadline yesterday (Wednesday, June 15), though the product is not one anyone appeared particularly pleased with - least of all the state's courts, which saw their budget slashed by an additional $150 million over the $200 cut already made in March.

Operating with the resolve and efficiency of one who has a distasteful but necessary job to do, the Democratic majorities in both legislative houses rolled through the proposed budget bill (AB 98) that had just been created via amendment the day before, along with several "trailer" bills needed to make the statutory changes necessary for the changes reflected in the Budget bill to take effect. Many of the changes involved creative mechanisms for increasing revenues via majority vote, rather than the 2/3 vote required by the state Constitution to increase taxes or fees, which required Republican support to achieve. Needless to say, several of the changes - in particular Senate President pro Tem Darrell Steinberg's SBX1 23 (i.e., SB 23 in the first Special Session), which would allow counties, school districts, community college districts and county boards of education to raise a variety of local taxes with voter approval - likely will be challenged in court.

The majority vote budget was the first since 1933, and came as the result of Proposition 25 on last November's ballot, which reduced the margin required to pass a budget from 2/3. The oft-referenced provision of that proposition that would permanently forfeit lawmaker salaries and expenses every day the budget was late may or may not have played a role in the Legislature's haste to approve; it's quite likely that the lawmakers who had long championed the majority-vote budget felt compelled to make it work on its maiden voyage. Capitol historians note that this was only the second time in the past 25 years that the Legislature has met the June 15 constitutional deadline to send a budget bill to the governor.

The day before the vote, Chief Justice Tani Cantil-Sakauye issued a statement decrying the proposed action, calling the budget proposal "devastating and crippling to the judicial branch and to the public it serves. . . With these cuts courts cannot provide these fundamental services or protect the rights of Californians. . . By marginalizing the courts, California strikes a blow against justice." In May, Gov. Jerry Brown's finance department said this second round of cuts likely would lead to court closures statewide twice a month.

It's not yet known if state Controller John Chiang, who has the final word on such matters, will certify that the budget approved by the Legislature is indeed balanced.  Nor is it absolutely certain that Governor Jerry Brown will sign the package (he has 12 days to do so, otherwise it becomes law without his signature).  Brown has been trying to work out a compromise with legislative Republicans to provide the votes needed to place a series of tax increases - or, more properly, an extension of recently-expired tax increases - before the voters at a special election, possibly in combination with Republican-sought proposals relating to such things as pension reform. Those efforts have been unsuccessful to date, however, and the passage of the majority-vote budget may remove the pressure to hold further negotiations - though there is nothing preventing a tax/fee-related backfill solution at any time if the votes can be found.

Saturday, July 18, 2009

Transfer on Death Deeds Bill Dies Again


As expected (see earlier post), the Senate Judiciary Committee again rejected this year's installment (AB 724) in Assembly Member Chuck DeVore's multi-year campaign to create Transfer on Death Deeds (TODD, otherwise know as "Beneficiary Deeds") in California. But it's getting much closer.

Last year, when the committee was comprised entirely of lawyers, DeVore's predecessor bill (AB 250) received only one vote on the five-member panel in the face of a killer committee analysis (pretty much replicated this year) highlighting concerns that TODD could be tools for elder financial abuse and would undoubtedly increase litigation. This year, the AB 724 failed by a narrow - and interestingly nonpartisan - 2-3 margin. Conservative Orange County Republican Mimi Walters and liberal San Francisco Democrat Mark Leno voted for the bill, while the committee's two remaining lawyers, committee chair Ellen Corbett (D-San Leandro) and vice chair Tom Harman (R-Huntington Beach) - both of whom practiced T&E law in their pre-Legislature professional lives - were joined by non-lawyer Dean Florez in opposing.

Committee members extended DeVore the traditional courtesy of unanimously reconsidering the vote on the bill, so DeVore will have one more shot next year before he's termed out of the Assembly (he's running for the U.S. Senate seat currently held by Barbara Boxer). Unless he can convince another committee member (presumably Florez) to change his mind, however, it will be up to some one else to pick up the TODD issue for the next session.

Tuesday, June 16, 2009

Courts Budget Deal Struck?

The state's courts reportedly have come up with a proposal to address the $393 million in budget cuts they are scheduled to endure in the next fiscal year. According to news accounts, the Administrative Office of the Courts, with yeoman's assistance from Assembly Member Mike Feuer (D-Los Angeles), chair of the Assembly Judiciary Committee, have reached an accord with legislative budget conferees to:
  • Close courthouses one day a month ($102 million);
  • Tap into funds earmarked for the new state computer system (CCMS), though the courts - though the AOC reportedly is authorized to trim elsewhere to reduce that amount ($102 million);
  • Tap into court construction and maintenance funds - with the apparent understanding that construction on projects already underway will not be affected ($25 million);
  • Raise civil filing fees $5 ($6-7 million);
  • Raise criminal fines and fees by $10 ($40 million);
  • Make a one-time only cut in statutory appropriation limit ($32 million);\Taken from trial court reserves ($70) million;
  • Redirect for for two years the funds raised by a $10 increase on certain fees proposed under Feuer's bill (AB 590) to create a "civil Gideon" pilot project under which free court-appointed counsel would be provided to low-income people in cases where basic human needs, such as shelter, sustenance, safety, health or child custody are at stake ($11 million).

The reported deal is the product of weeks of intense lobbying and debate. Many of the proposed elements of the deal cannot be implemented without statutory changes, which likely will appear in a budget "trailer" bill or bills.