Governor Brown posts YouTube video about veto of legislature's majority budget (June 16, 2011)

GOVERNOR BROWN VETOES STATEBUDGET BILL – SAYS HE DOES SO “RELUCTANTLY BUT WITH CLEAR PURPOSE”

Legislature Will Have To Resume Efforts To Hammer Out A New Budget Deal That Meets Governor’s Concerns

SACRAMENTO, CALIF  (CDCAN)  [Last Updated 06/16/2011  11:19 AM] -  Governor Brown, saying he was doing so “reluctantly but with clear purpose”, vetoed SB 69 and AB 98 that comprise – together - the 2011-2012 main budget bill approved yesterday on a majority vote by the Legislature controlled by the Democrats.

The Governor his brief 1 minute announcement via a YouTube video clip that can be viewed at:  http://www.youtube.com/watch?v=L7dHqjhJz8k

The impact of the veto means that the budget crisis remains unresolved – and the Legislature will need to return to Sacramento and work on hammering out a new budget deal.

The penalties of Proposition 25 will not kick in again because the Legislature did meet its obligation under that law to pass a budget plan and to present it to the Governor by the June 15th State constitutional deadline.  Looming ahead though is the start of the new State budget year – July 1st and the potential chaos that will likely grow and spread if a long budget stalemate continues.

Assembly Speaker John Perez (Democrat – Los Angeles) will be holding a press conference in response to the Governor’s veto at 11:30 AM this morning.

The impact of an unresolved budget situation means the threat of deeper spending cuts remains to programs, services and supports for children and adults with disabilities, mental health needs, seniors, low income families and others not only in health and human services budget items, but in education, higher education, transportation and other areas.

WHAT THE GOVERNOR SAID:

For a decade the can has been kicked down the road and debt has piled up. In January I presented a balanced budget solution of deep spending cuts a proposal to let the people of California vote on whether to extend some taxes on a temporary basis.”

Unfortunately the Republicans said no – they didn’t want the people of California to have that right to vote. The Democrats on the other hand, made some very deep cuts. And the budget I received today there was more positive work.

Unfortunately it doesn’t go far enough.

Californiais facing a fiscal crisis – and very strong medicine must be taken.  So I am vetoing it today because I don’t want to see more billions in borrowing, legal maneuvers that are questionable and a budget that will not stand the test of time.

TEXT OF GOVERNOR BROWN’S VETO MESSAGE

I am returning Senate Bill 69 and Assembly Bill 98 without my signature.

In January, I presented a balanced budget solution with a mix of deep spending cuts and temporary tax extensions subject to voter approval. My plan would put these extended revenues in a lockbox, ensuring that they are only used to protect education and public safety. It would also address California’s long term fiscal crisis by substantially paying down the $35 billion wall of debt built up over the last decade.

Yet Republicans in the Legislature blocked the right of the people to vote on this honest, balanced budget.

Meanwhile, Democrats in the Legislature made valiant efforts to address California’s budget crisis by enacting $11 billion in painful cuts and other solutions. I commend them for their tremendous efforts to balance the budget in the absence of Republican cooperation.

Unfortunately, the budget I have received is not a balanced solution. It continues big deficits for years to come and adds billions of dollars of new debt. It also contains legally questionable maneuvers, costly borrowing and unrealistic savings. Finally, it is not financeable and therefore will not allow us to meet our obligations as they occur.

We can – and must – do better. A balanced budget is critical to our economic recovery. I am, once again, calling on Republicans to allow the people of California to vote on tax extensions for a balanced budget and significant reforms. They should also join Democrats in supporting job creation and ending tax breaks for out-of-state companies. If they continue to obstruct a vote, we will be forced to pursue deeper and more destructive cuts to schools and public safety– a tragedy for which Republicans will bear full responsibility.

CDCAN SUMMARY OF MAIN BUDGET BILLS

The following is the latest CDCAN status and the latest links to the revised main 2011-2012 State budget bill and the budget trailer bills approved by the State Senate and the Assembly yesterday and now vetoed today by Governor Brown.

AB 98 – REVISED MAIN BUDGET BILL 

AUTHOR: Assembly Budget Committee
CDCAN SUMMARY:  Revised 2011-2012 main budget bill.
PREVIOUS ACTION 06/15/2011: PASSED State Senate 23 to 15.  PASSED Assembly 51 to 23.
LATEST ACTION 06/16/2011: VETOED by Governor.
NEXT STEPS:  The Legislature can either attempt to over-ride the Governor’s veto – and unlikely event given that 2/3rds vote would be needed or hammer out a new budget deal that meets the Governor’s concerns and objections.
CDCAN COMMENT:  Revises SB 69, the main budget bill that the Legislature approved on a majority vote on March 17 but never sent to the Governor and combined with that bill (and the budget trailer bills) makes up the 2011-2012 State Budget. The State Senate previously approved this on June 10th by a vote of 24 to 15, before it was amended again on June 14th and then re-voted on by both houses.
LINK TO LATEST VERSION OF BILL- HTML: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_98_bill_20110614_amended_sen_v96.html
LINK TO LATEST VERSION OF BILL – PDF: http://www.leginfo.ca.gov/pub/11-12/bill/asm/ab_0051-0100/ab_98_bill_20110614_amended_sen_v96.pdf

SB 69 – MAIN 2011-2012 BUDGET BILL

AUTHOR: Senate Budget & Fiscal Review Committee
CDCAN SUMMARY: Main 2011-2012 State budget bill – as revised by AB 98.
PREVIOUS ACTION 03/17/2011:  PASSED State Senate by vote of 25 to 15.  PASSED Assembly by vote of 52 to 26.  [this bill was never sent to the Governor until June]
LATEST ACTION 06/16/2011: VETOED by Governor.
NEXT STEPS:  The Legislature can either attempt to over-ride the Governor’s veto – and unlikely event given that 2/3rds vote would be needed or hammer out a new budget deal that meets the Governor’s concerns and objections.
CDCAN COMMENT:  This bill contains several of the reductions that did not require budget related (trailer bill) language, including the reduction to MSSP (Multipurpose Senior Services Program)
LINK TO LATEST VERSION OF BILL – HTML:  http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_69_bill_20110318_enrolled.html
LINK TO LATEST VERSION OF BILL – PDF: http://www.leginfo.ca.gov/pub/11-12/bill/sen/sb_0051-0100/sb_69_bill_20110318_enrolled.pdf