AgdaPkt 2009-01-12 clsd and reg - Laserfiche WebLink

Browse Search

'State Budget Continued from Page 1... The week started with an unusual combined session of the Senate and Assembly to hear from state elected and appointed officials about the extent of the state's fiscal crisis and the importance of the legislature acting quickly to solve it. According to the non-partisan Legislative Analyst. the state was facing a deficit estimated at $28 billion over the next year and a half ($11.2 billion In the current year, and $17 billion over the next year). Opening the session, Assembly Speaker Karen Bass said, "We can't afford not to act: Senate President Pro Tern Darrell Steinberg followed, describing the need for all legislators to fully understand the extent of the budget crisis. 'We can't argue about right solutions, unless we agree on the urgency and gravity of the problem," he said. "This is not a partisan issue or ideological problem. .. Legislators then heard about the depth of the state's fiscal crisis and the necessity of quick action in presentations by State Finance Director Michael Genest, Legislative Analyst Mac Taylor, State Controller John Chiang and State Treasurer Bill Lockyer. Questions from legislators on both sides of the partisan divide did not indicate much movement from their fundamental perspectives. The session closed down with both houses scheduling follow-up hearings by their budget committees. By Wednesday. Gov. Arnold Schwarzenegger upped the ante, announcing that the Department of Anance now pegged the i8-month deficit at $41 billion. He attributed the increase in the deficit to the Legislature's failure to pass a budget solution during November's special session. "Big Five" budget meetings were held this week, (the Governor, Senate Pro Tern Steinberg, Assembly Speaker Bass, Assembly Minority Leader Villines and Senate Minority Leader Cogdill). Yesterday, the meetings appeared to blow up as Sen. Cogdill walked out of a meeting, angry at press leaks that appeared to come from the governor's office. Cogdill did say that he would attend future meetings, but only negotiate In the future with other legislators. Separate Informational hearings were also held yesterday by the Senate Budget Subcommittee 2 on State Administration and the full Assembly Budget Committee for the special session. Both houses plan to continue hearings today. (See "Legislative Budget Committees Review Options.") 'Budget Committees' Continued from Page 1... Separate informational hearings were held by the Senate Budget Subcommittee 2 on State Administration and the full Assembly Budget Committee for the special session. As a solution for the current year deficit and to continue in future years, one of these proposals presented in the Senate by the Legislative Analyst was to increase the current year taking of $350 million In redevelopment funds by $50 million. While city officials know that things can change quickly in the Capitol, at least at this hearing legislators appeared cool to the idea, referencing CRA's recently-filed lawsuit which challenges the current year taking of redevelopment funds. They also posed a number of questions and discussed the positive role that redevelopment agencies play in job creation and reducing blight. The subcommittee also discussed the possibility of using a portion of redevelopment tax increment funds to securitize state borrowing for debt reduction. This notion surfaced during last year's budget discussions as well. The Administration has also looked at this idea, but made no recommendation on it at this time. League staff and CRA representatives testified at the hearing, expressing concerns with both proposals. 8A Page 2 2