Highlights of the crisis:
July 1 is the first deadline that matters. Although the budget is supposed to be passed by June 15, over the years, that has become a goal, not a deadline. The Legislature rarely makes that goal, even in years that there isn't a crisis.
On July 1, some money stops flowing out from the state. Technically, those payments will be delayed but some state-funded programs live hand-to-mouth and cannot weather a delay.
At the end of July, the bridge loan runs out and the effects will be deeper.
Yesterday, the Democrats brought their proposal for a vote. It included higher taxes and therefore needed a two-thirds vote. Without Republican votes,the higher taxes can't pass and they didn't.
In addition, the Democrats put up what they call the Republican plan. The Republicans said that it didn't match their plan, that it had at least a dozen differences but that they couldn't put their plan together by Monday night. (Yes, as a Republican, I am deeply embarassed.) The Democratic version of the Republican plan did not get any votes. Zero votes. They spent time debating it and then it got zero votes.
Now, it's the weekend and everyone's gone home. Davis is in NY telling the legislators that they should do something.
It'll be ugly very soon.
News coverage: The LA Times, the Sacramento Bee, and the San Francisco Chronicle.
Blog coverage as I find it.
UPDATE: California Insider has a far more optimistic response:
For all their huffing and puffing, the Democrats and Republicans in the Senate are less than $2 billion apart on a $71 billion general fund.
Go read the whole thing.
Posted by Justene Adamec at June 28, 2003 11:06 AM | TrackBackI also believe the Republican's still say it does not balance and will result in a larger problem next year. I could be wrong, I've not been paying alot of attention while many of the democrates have been out on the country side trying to get people to want to pay more taxes. Nothing can actually get passed untill they return to work
Posted by: Wayne in San Diego at June 28, 2003 11:50 AM (Permalink)It's optimistic to note that the state *might* be able to cobble together a budget, but that it would leave an $8 billion deficit next year, not solve the state's structural budgeting problems, and delay the day of reckoning?
That's a funny sort of optimism.
Posted by: aphrael at June 30, 2003 04:28 PM (Permalink)