Pasadena Chamber of Commerce

News reports indicate that yesterday our legislative leaders and governor came to agreement on a budget deal.  Indications are it could be voted on by the Assembly on Thursday.

Some high points:

No big tax increases. The budget depends on deep program cuts. Local governments would lose billions, both in transportation funding and redevelopment monies. Prison cuts would mean the early release of thousands of prisoners.  State workers would continue to take unpaid furlough days. State parks are spared huge cuts. Oil drilling would be allowed off Santa Barbara. Billions in education funding will be cut, resulting in larger class sizes, teacher and staff layoffs and reduction in services and programs. State university employees would face unpaid furloughs.

Education funding would have to be paid back once the economy recovers.

Los Angeles County has already indicated it will sue to preserve local funding.  It is also anticipated that lobbying will be furious, heavy and heated from every interest group, affected labor union, business and advocacy group and the general public. Pasadena Police Chief Bernard Melekian, head of the California Police Chiefs Association speaks for law enforcement opposing the potential early release of 19,000 felons from state prisons.

There is much to dislike in the budget proposal. It remains to be seen if it will survive the legislative process.

There are also aspects of the budget proposal that are built on, according to some, unrealizable income, so we may be right back to having California issue IOUs again next spring.

Dan Walters of the Sacramento Bee calls this another in the line of tricky budgets that fail to address the real financial problems California faces.  You can read his comments here.

Paul