(July 1, 2009) -- The CA Senate failed to enact three stop-gap measures by midnight, meaning CA gov't now faces an even larger deficit -- at least $3 billion more (some Senate Dems cited roughly $6-7 billion) on top of the state government's gaping $24 billion deficit (spending exceeding revenue) entering FY09-10 which began at midnight.
The Senate approved by majority-votes (not 2/3) FY09-10 budget balancing/deficit reduction bills, which Dems said would plug $23 billion of $24 billion deficit.
Senator Jenny Oropeza's (D., southbay) voice was quaking with emotion in urging support for the measures, but Gov. Schwarzenegger had previously indicated that he wouldn't sign "piecemeal" legislation that didn't solve the current deficit in full...and Senate Republicans likewise refused to join in the stop-gap funding bills or the roughly $23 billion (out of $24 billion) deficit in reductions.
In presenting his opening arguments, Senate President Pro Tem Darrell Steinberg (D., Sacramento) said, "This is crazines. There's no excuse for it. There's no excuse to hold this whole state hostage."
Senate Republican leader Senator Dennis Hollingsworth (R., Murietta) argued against the measures, stating:
Sen. Hollingsworth: ...Because of the inaction of the last several weeks, the refusal to address the entire $24 billion problem, that scalpel will become an axe...Don't forget as we are talking about these cuts to services, that just a few months ago, 37 million Californians had their taxes raised in the toughest of economic times to the tune of about $12 billion and they are having tough times too. They're wondering how they're going to pay the mortgage, they're wondering how they're going to pay the grocery bill, they're wondering if they're going to have a job next week because of this job killing climate that we've created in California. All of the uncertainty that we have given to every businessperson...as to whether or not next month this legislature is going to send another bill, another tax, another regulation that sends another job out of California...
His comments promoted Senator Jenny Oropeza (D., southbay) to speak. Her voice quaking with emotion, Sen. Oropeza said:
Sen. Oropeza: ...I just feel compelled to rise tonight to say that this is not what I came here to do...I don't appreciate rhetoric put up on us in this venue tonight...somehow implying that that is the Democrats' fault, because the honest truth is that it's not. Can we for once in our lives be honest on this floor and tell the truth about who will be hurt? I don't know about you, but I am not willing, and I don't think Californians are willing, to allow for people in wheelchairs to go unbathed...We have a responsibility to real people, and their children, and their grandchildren. We have that duty to make sure that no one starves, no one goes without a roof over their head...Think about the human beings, think about the real people that we're going to hurt, and let's work together for once the way the public expects us to.
To hear Sen. Oropeza's words as she delivered them, click here.
State Senator Lowenthal also spoke. He said:
Sen. Lowenthal: ...We get it. We have to work together. We've got to solve this tonight. It's real clear. Republicans have said their bottom line is 'no new taxes.' Democrats have said 'our bottom line is we've got to keep some semblance of a safety net.' There are no taxes in over $23 billion proposal tonight. Let me repeat that: there are no additional -- NO taxes at all -- no additional, not old, not new, not sideways, NO taxes. We heard you. No taxes. All built upon the Governor's [proposed] budgets or cuts...
To hear Sen. Lowenthal's words, click here.
Sen. Mark Leno (D., SF) said that without passage of the stop-gap measures, the deficit would rise to $6-7 billion beyond what it already was. "You should rightfully be asked by your constituents: You did what? You spent $7 billion of our tax dollars because you were arguing over one?...I'm in business; I don't waste 7 because I'm arguing over 1."
At two minutes to midnight, with the stop gap funding measures stopped in their tracks, Sen. Steinberg said, "I know the Governor is downstairs...saying to himself, 'Well jeez, if they don't do this then they're going to have to cut another $6 or so out of Health and Human Services. What an irresponsible -- what an irresponsible -- position to take."
The three stop-gap bills needed 27 votes but only had 25...with Repub. Sen Abel Maldonado not voting despite multiple calls.
CA gov't is now basically out of cash and within next day or so is likely to begin issuing IOUs.
For additional coverage: SacBee.com, click here and LATimes.com, click here
