California Budget Deadline Looms Amidst Political Battles

ICARO Media Group
Politics
13/06/2024 20h24

In a continuation of a long-standing political saga, California's state budget for the 2024-25 fiscal year is set to be passed just before the constitutional deadline on June 15. However, experts predict that the budget being presented this week may only pay superficial homage to the state's constitution and bear little resemblance to the final version.

To understand the origins of this ongoing charade, we need to go back to 2009. Facing a budget crisis caused by the Great Recession, former Republican Governor Arnold Schwarzenegger clashed with Democratic legislative leaders over the budget, which had become entangled in partisan disputes. At the time, budgets required a two-thirds vote in the Legislature, necessitating the support of a few GOP legislators.

Enter Abel Maldonado, a Republican state senator, who refused to cast the deciding vote unless Democrats agreed to place a measure on the 2010 ballot that would overhaul California's primary election system. Maldonado, endorsed by Schwarzenegger, advocated for a jungle primary system, where candidates from all parties would compete in a single primary, with the top two advancing to the general election.

Reluctantly, Democrats conceded to Maldonado's demand, and Proposition 14 was placed on the ballot. Schwarzenegger emphasized that most Californians reside in the political center and should not be penalized for prioritizing the people over partisan politics.

Infuriated by this compromise, Democrats swiftly qualified another ballot measure, Proposition 25, which lowered the vote requirement for budgets to a simple majority. This effectively excluded Republicans from the budget process and introduced a provision stating that legislators' salaries would be withheld if they failed to pass a budget by June 15.

The following year, Democrat Jerry Brown vetoed the 2011-12 budget, citing extensive deficits and additional debt. In response, Democratic State Controller John Chiang promptly blocked legislators' paychecks, costing them approximately $400 per day. Eventually, a new budget was passed and signed by Brown, and paychecks were reinstated.

However, this incident sparked outrage among legislative leaders, who initiated a lawsuit against Chiang. They ultimately secured a judicial ruling that allowed legislators to retain their salaries even if an incomplete budget was passed by June 15.

Consequently, the budget set to be passed this week is expected to be far from finalized. The real challenge lies in resolving divergent opinions between Governor Gavin Newsom and legislative leaders regarding significant aspects of the budget. Newsom's proposal to address a $44.9 billion deficit includes reductions in state programs, but legislators aim to decrease prison spending and introduce tax increases on businesses to counteract Newsom's cuts.

As the budget deadline looms, the political battle for control over California's finances intensifies. Californians await the outcome of these negotiations and hope for a budget that effectively addresses the state's fiscal challenges while prioritizing the needs of its citizens.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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