State News: Governator signs budget bill

Governor Schwarzenegger signs state budget package

Governor Arnold Schwarzenegger has signed a package of bills designed to close California's $42 billion budget shortfall for the next year-and-a-half.

The Republican governor signed the bills Friday during a brief event that was closed to reporters. He made no public comments.

During a news conference a day earlier, Schwarzenegger praised lawmakers for taking a courageous stand in agreeing to a compromise. The plan includes $15 billion in spending cuts, $12.8 billion in temporary tax increases and $11 billion in borrowing.

The package of 34 bills passed both houses of the Legislature with the minimum number of Republican votes needed to reach the required two-thirds majority. It is intended to close the deficit for the rest of this fiscal year and pass a balanced, $96.3 billion budget for the fiscal year that begins July 1.

Source: KSBY - Link

Related story at Sacramento Bee

Schwarzenegger slashes budgets for constitutional officers

Gov. Arnold Schwarzenegger formally ended months of political fighting Friday by signing a new state budget - but not before taking another shot at constitutional officers.

Among $1.3 billion in vetoes, Schwarzenegger sliced budgets of the attorney general, controller, treasurer, secretary of state and Board of Equalization by 10 percent to compensate for savings that would have occurred from furloughing employees.

Schwarzenegger chopped even more from the budget of Lt. Gov. John Garamendi, a potential gubernatorial candidate in 2010, slicing his budget by two thirds - from $2.78 million to $1.04 million, saying he did so "to ensure that sufficient resources are reserved for key programs within state government. In these tough times, we cannot continue to fund the Office of the Lieutenant Governor at the level provided in recent years."

The unusual scope of the reduction, however, which will force Garamendi to lay off much of his relatively small staff, may have been payback for his sharp criticism of the budget deal that Schwarzenegger had worked out with Democratic legislative leaders. Garamendi's complaints about the deal's spending cuts have been widely seen as currying favor with unions and other pro-spending groups as he seeks the Democratic nomination for governor next year.

Schwarzenegger did not, however, inflict the same budgetary punishment on Insurance Commissioner Steve Poizner, a Republican candidate for governor, who has been sharply critical of the budget deal's $12-plus billion in new taxes.

The budget cut did not temper Garamendi's criticism. He said the spending cuts "further harm the vulnerable and the ability of the state to thrive in the years ahead" and called the package of spending cuts and new taxes "temporary and insufficient," adding, "the borrowing continues and the budget problem will reemerge in just a few months."

Schwarzenegger has ordered the twice-month furlough of state employees to save money. Constitutional officers have balked at order, arguing that the governor does not have authority over them.

Constitutional officers say they have achieved adequate savings without furloughing workers.

Schwarzenegger has filed suit in an attempt to clarify his authority in the matter.

Constitutional officers also are elected officials and oversee their own budgets.

The Legislature's budget was not targeted by Schwarzenegger's vetoes. A funding formula for the Senate and Assembly was adopted in 1990 as part of a ballot measure, Proposition 140, which imposed term limits.

Source: Sac Bee - Link
Photo credit: Sacramento Bee