In nine days I go on vacation. I think it’s even money as to whether or not California has a budget before I leave.
Of course, California is supposed to have a budget signed by June 30th, but that deadline is rarely met. However, it appears that progress is being made…lubricated by wine.
The Sacramento Bee reports that Assembly Speaker Fabian Nunez has used wine to help Democratic and Republican leaders to come to an agreement. Even though the Democrats control both houses of California’s legislature, they must get Republican votes in order to pass a budget—the budget must pass by a 2/3 vote. Republican leaders want an end (or, at a minimum, a drastic cut) to California’s $1.5 billion operating deficit.
Democrats don’t want to forgo cost-of-living increases in social programs. Republicans want a balanced budget and cuts in spending. Something has got to give eventually. Already, staff workers in Sacramento have missed a paycheck.
There’s one other factor that figures into the budget stalemate: California’s revenues are $800 million under projections. The housing slump and the Central Valley freeze (which greatly impacts agriculture) are probably the two biggest culprits here. In any case, this also doesn’t bode well for the future. California will likely face a $5 billion budget shortfall next year.