GOP in state Senate refuses to accept budget
Tom Chorneau, Chronicle Sacramento Bureau
(08-02) 04:00 PDT Sacramento -- - The state's monthlong budget stalemate intensified Wednesday when Senate Republicans refused to support a $145 billion plan that they said spent too much money.
The vote came after a day of furious negotiations between party leaders and Gov. Arnold Schwarzenegger. But in the end, the Senate's 25 Democrats and one Republican stood in favor of the budget - still one vote shy of the two-thirds majority needed for passage.
The deadlock means the state remains unable to fund some social service programs, including those that compensate hospitals and clinics that provide health care to millions of poor Californians.
But the breakdown also led Senate President Pro Tem Don Perata, D-Oakland, to suspend further negotiations and to lift travel restrictions on senators so they could return to their home districts - a move that could signal talks might not resume for two weeks when the state Assembly returns from a summer recess.
A frustrated Perata said he has done all he can.
"I think this is a Republican problem that is going to have to be solved by Republicans," Perata said. He added that the state is being held captive by people who do not believe in compromise. "So, I'm done."
Democrats and Schwarzenegger said the $145 billion budget approved by the Assembly 10 days ago is a fair compromise. But Republican senators say that plan needs to be cut because it includes optimistic revenue projections and carryover from past borrowing.
"Republicans want a balanced budget," said Sen. Tom McClintock, R-Thousand Oaks (Ventura County). "We feel, we all feel, that the fiscal situation is dire and getting worse and needs to be addressed."
Schwarzenegger said he was disappointed in the vote, but offered little direction to lawmakers.
"The budget approved by the Assembly is a responsible budget that fully funds education and public safety, puts aside the biggest reserve fund in memory and pays down our debt," he said. "I was prepared to eliminate the operating deficit as requested; therefore, the Senate should have approved the budget. My job now is to make sure this does not shut down state government."
The one GOP senator who chose to side with Democrats and Schwarzenegger - Sen. Abel Maldonado, R-Santa Maria (Santa Barbara County), said he would risk losing re-election to support the plan because it was time the deadlock was broken.
"I think a vote for this budget is a vote for a fiscally responsible plan and No. 2, it does not raise taxes," he said. "If I lose my election because of this, that's a price I'm willing to pay."
The state has been without a budget since the fiscal year began July 1, and while most agencies have continued without interruption, several services are not getting funded, including some schools and universities, state vendors and legislative staffers and elected officials.
Beginning Wednesday, the state was unable to pay $227 million to hospitals, clinics and other social service programs that serve about 7 million poor and disabled residents in the state's Medi-Cal program.
The skipped payment will hit an estimated 500 hospitals and 11,000 nursing homes, hospices and adult day care centers throughout California. While some of the larger institutions have reserve funds that can carry them a few weeks, many smaller providers have to borrow money, and some are making plans to close if the impasse continues.
The state controller's office reports it has withheld $1.1 billion in payments that should have been paid in July.
There was $326 million due to community colleges that could not be paid; $170 million to school districts for special-education programs and $140 million to state vendors. In addition, $300 million in child development money that supports day care programs could not be paid.
McClintock said that Republicans who are holding out on the budget are not unsympathetic to the plight of those being hurt by the budget stalemate.
"We care deeply about that," he said. "That's precisely why we've taken the position we have, because if we do not make the difficult decisions this year, next year will be all the more difficult."
Tom Chorneau, Chronicle Sacramento Bureau
Date: 8/2/2007
(08-02) 04:00 PDT Sacramento -- - The state's monthlong budget stalemate intensified Wednesday when Senate Republicans refused to support a $145 billion plan that they said spent too much money.
The vote came after a day of furious negotiations between party leaders and Gov. Arnold Schwarzenegger. But in the end, the Senate's 25 Democrats and one Republican stood in favor of the budget - still one vote shy of the two-thirds majority needed for passage.
The deadlock means the state remains unable to fund some social service programs, including those that compensate hospitals and clinics that provide health care to millions of poor Californians.
But the breakdown also led Senate President Pro Tem Don Perata, D-Oakland, to suspend further negotiations and to lift travel restrictions on senators so they could return to their home districts - a move that could signal talks might not resume for two weeks when the state Assembly returns from a summer recess.
A frustrated Perata said he has done all he can.
"I think this is a Republican problem that is going to have to be solved by Republicans," Perata said. He added that the state is being held captive by people who do not believe in compromise. "So, I'm done."
Democrats and Schwarzenegger said the $145 billion budget approved by the Assembly 10 days ago is a fair compromise. But Republican senators say that plan needs to be cut because it includes optimistic revenue projections and carryover from past borrowing.
"Republicans want a balanced budget," said Sen. Tom McClintock, R-Thousand Oaks (Ventura County). "We feel, we all feel, that the fiscal situation is dire and getting worse and needs to be addressed."
Schwarzenegger said he was disappointed in the vote, but offered little direction to lawmakers.
"The budget approved by the Assembly is a responsible budget that fully funds education and public safety, puts aside the biggest reserve fund in memory and pays down our debt," he said. "I was prepared to eliminate the operating deficit as requested; therefore, the Senate should have approved the budget. My job now is to make sure this does not shut down state government."
The one GOP senator who chose to side with Democrats and Schwarzenegger - Sen. Abel Maldonado, R-Santa Maria (Santa Barbara County), said he would risk losing re-election to support the plan because it was time the deadlock was broken.
"I think a vote for this budget is a vote for a fiscally responsible plan and No. 2, it does not raise taxes," he said. "If I lose my election because of this, that's a price I'm willing to pay."
The state has been without a budget since the fiscal year began July 1, and while most agencies have continued without interruption, several services are not getting funded, including some schools and universities, state vendors and legislative staffers and elected officials.
Beginning Wednesday, the state was unable to pay $227 million to hospitals, clinics and other social service programs that serve about 7 million poor and disabled residents in the state's Medi-Cal program.
The skipped payment will hit an estimated 500 hospitals and 11,000 nursing homes, hospices and adult day care centers throughout California. While some of the larger institutions have reserve funds that can carry them a few weeks, many smaller providers have to borrow money, and some are making plans to close if the impasse continues.
The state controller's office reports it has withheld $1.1 billion in payments that should have been paid in July.
There was $326 million due to community colleges that could not be paid; $170 million to school districts for special-education programs and $140 million to state vendors. In addition, $300 million in child development money that supports day care programs could not be paid.
McClintock said that Republicans who are holding out on the budget are not unsympathetic to the plight of those being hurt by the budget stalemate.
"We care deeply about that," he said. "That's precisely why we've taken the position we have, because if we do not make the difficult decisions this year, next year will be all the more difficult."
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