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QUOTESfrom page 4 ............................................... <br />Sacramento Bee, 5/1103, Daniel Weintraub: <br />GOP plan is a start, but doesn't balance the <br />budget. "The Republican plan doesn't balance the <br />budget. It simply shifts the problem to the following <br />year. It leaves, by their own accounting, an $11 <br />billion structural gap between spending and rev- <br />enues in the 2004 -05 fiscal year." <br />Sacramento Bee, 5/4/03, Daniel Weintraub: <br />Missing at state level — Creativity, specific <br />goals. "The problem stems from a culture that is <br />resistant to change. The public employee unions, <br />which tend to oppose flexibility, present obstacles. <br />But the professional and political managers within <br />state government haven't shown much creativity, <br />either. <br />"Are there easy solutions? No. Would making <br />government more efficient balance the budget by <br />itself? Unlikely. But it can't hurt." <br />Sacramento Bee, 5/4103, Dan Walters: <br />Timely budget important, but rational one is <br />more vital. "The months of procrastination, <br />coupled with mounting legal and financial pressures <br />to get a budget in place, seemingly set the stage <br />for more panicky decision - making, the sort of vote - <br />for- anything mentality that marked the energy crisis <br />and the budget crisis to date. While the new flurry <br />of budget activity is welcome, therefore, it's just as <br />important to enact the right kind of budget as it is to <br />enact a timely budget." <br />$3.7 billion off deficit "Lawmakers struck a deal <br />Wednesday to wipe out a $3.7 billion chunk of <br />California's multibillion - dollar deficit by shaving <br />spending and borrowing to pay the state's pension <br />obligations — the most significant breakthrough yet <br />in budget talks." <br />San Diego Union Tribune, 5/1/03, Lawmak- <br />ers announce deal on pension bonds that cut <br />deficit. "The bipartisan agreement calls for cutting <br />$1.2 billion from health care, education and local <br />government, and includes a scheme to borrow the <br />money needed to pay a $1.9 billion in pension <br />obligations due this year and next." <br />The Los Angeles Times, 5/2/03, $3.6 Billion <br />in Borrowing, Cuts OK'd by Legislators <br />Pushed by a court ruling and Wall Street, both <br />houses in Sacramento act to end standoff. <br />"The newly energized California Legislature ap- <br />proved a $3.6- billion package of spending cuts and <br />borrowing Thursday, less than 24 hours after the <br />agreement was reached, but still stood billions of <br />dollars shy of a final budget solution." <br />Sacramento Bee, 5/2/03, Bills meant to cut <br />deficit go to Davis — The measures will mean <br />more state borrowing and reduced health <br />benefits for the needy. "The Legislature on <br />Thursday sent Gov. Gray Davis a stack of bills to <br />chip away at the state's budget shortfall by borrow- <br />ing to pay pension obligations, cutting health <br />benefits for the poor and dipping into a teachers <br />retirement fund." <br />News Stories <br />The Los Angeles Times, 5/1/03, State Law- <br />makers Find Way to Pare Budget Gap <br />Bipartisan agreement to borrow from pension <br />funds and cut services produces a $3.6- billion <br />patch. But Davis insists sales tax hike is <br />needed. "Even as legislators reported progress, <br />however, Gov. Gray Davis warned that a more <br />comprehensive effort to close the rest of the state's <br />$35- billion budget gap cannot work without new <br />taxes. That plan depends on additional state <br />borrowing, and investment banking firms will not <br />lend California more money without a new source of <br />revenue dedicated to paying off bonds, Davis said." <br />Sacramento Bee 5/1103, Capitol deal would lop <br />Oakland Tribune, 5/2/03, State workers <br />could be facing big pay cuts — 300,000 em- <br />ployees may earn minimum. "State government's <br />nearly 300,000 employees may have to work for <br />minimum wage if lawmakers don't pass a budget by <br />June 30 or approve emergency salary legislation, <br />an unanimous California Supreme Court ruled <br />Thursday." <br />The Stockton Record, 512/03, Budget <br />package OK'd as 2 San Jose Republicans <br />dissent on some bills. "As lawmakers passed a <br />$3.6 billion budget- reduction package Thursday, a <br />pair of San Joaquin County -area Republicans <br />rejected portions of the plan, casting lonely dissent- <br />ing votes during a rare moment of bipartisan unity <br />Continued on Page 10 <br />Visit the League's Official Web Site-- www.cacities.org PRIORITY FOCUS /PAGE 9 <br />