Friday, August 8, 2008

California Budget Stalemate Continues

As of today, California's budget is 39 days late and the political situation seems to be getting worse.

Below are a list of what has happened:
  • The Budget's Constitutional Deadline is June 15
  • The State's fiscal year begins July 1 (The state is operating without a budget)
  • The Governor laid off 10,000 part time workers.
  • The Governor reduced many state workers compensation to the Federal minimum wage, but not all. More on this in the Capitol Report.
  • State Controller John Chiang refuses to implement the Governor's Executive order regarding reducing state workers wages. He also says that this is impossible because of outdated computers.
  • The Governor is refusing to sign any bill into law until a budget is sign (thus vetoing the bill) SacBee Article, SF Gate Article
  • The Governor proposed a temporary (three year) one cent increase in the sales tax
  • The Democrats in the Legislature proposed $9 billion in tax increases and a budget
  • The Republicans in the Legislature have proposed a spending cap and not a budget, and accuse the Democrats of stalling.
Ok that is the chronology to date. I have a feeling this is just going to get more "interesting". Unfortunately, the Republican Minority may be looking at facilitating a crisis as a way to make electoral gains in November.

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