California Budget Crisis - Resolved, For Now

Last week, my Assembly colleagues and I passed a package of bills to resolve California's cash crisis and eliminate an unprecedented $24 billion deficit. For the moment, California's cash crisis is resolved. I say for the moment because with the economy still in freefall California's revenues may continue to decline causing a deficit once again in just a few months.

The bills we passed adjusted the 2009-10 budget originally adopted in February. While we adopted the 09-10 budget on time, by May it was out of balance due to the precipitous drop in state revenues.

The budget revisions make many painful cuts to our schools, to needed human services and to state workers. Yet in the midst of this unprecedented crisis the agreement negotiated by legislative leaders preserved many programs, minimized some of the most harmful cuts, and reduced the takeaways to local governments. Our actions included:

· Safeguarding Proposition 98 and ensuring repayment of $11.2 billion to K-12 education

· Minimizing cuts to CalWORKS and In-home Supportive Services (IHSS) programs

· Saving Healthy Families Program and stopping eligibility reductions

· Preserving Cal Grants

· Preventing closure of state parks and the opening of oil drilling off our coastline

· Avoiding local government gas tax fund takeaway and ensuring local government reimbursement for Prop 1A suspension

· California retained billions in federal funds at risk from Governor's proposed cuts that would have failed to meet federal requirements.

Painful as the cuts are, the revision we approved is not the all-cuts approach proposed by the Governor. A chart highlighting the differences between the Governor's approach and the budget agreement approved by the Assembly can be viewed here.

Over the last few months, I held forums throughout AD14. By large margins, AD14's preferred approach was to protect our schools, social services and other state programs with new revenues like the oil drilling fee or increased tobacco taxes rather than cuts. However, with the Governor and every Republican legislator refusing to support new revenue and California requiring a two-thirds vote to pass a budget and increase taxes, our preferred path was not available.

Clearly, reform of our budgetary process is necessary to achieve a balanced approach to future budgets. I am committed to changing California's 2/3 requirement and restoring majority budget approval.

I am honored to serve you and invite your comments and concerns.

Sincerely,

Nancy Skinner, Assemblymember, 14th District