
Updated: 20 May, 2009
STATE DEFICIT SWELLS TO OVER $21 BILLION
BALLOT MEASURES TIED TO BUDGET DEFEATED
Governor and Legislative Leaders To Meet Wednesday As Budget Crisis Grows Worse - Massive Spending Cuts On Table – Budget Conference Committee On Thursday - Judy Chu Leads In 32nd Congressional Seat Primary – Curren Price Wins 26th State Senate Seat – His Win Will Mean A Vacancy In the Assembly
As expected, voters resoundingly rejected five of the six ballot measures in the May 19th special election, blowing apart the 2009-2010 State budget passed in February, with the budget shortfall now swelling to over $21 billion.
The state faced a budget shortfall of over $15 billion regardless of the special election results – but now grows by another $6 billion because of the defeat of the ballot measures – especially Proposition 1C, which would have authorized the borrowing of $5 billion of Lottery money into the state general fund.
The defeat of the propositions means Governor Arnold Schwarzenegger’s “doomsday” budget proposals calling for an additional $6 billion in spending cuts will move forward for the Legislature to consider in the coming weeks. The Governor proposed last week massive new spending cuts to several programs and services impacting children and adults with disabilities, the blind, mental health needs, seniors and low income families including Medi-Cal, SSI/SSP (Supplemental Security Income/State Supplemental Payment) grants, regional centers, In-Home Supportive Services, proposed elimination of the Cash Assistance Program for Immigrant, and more cuts to the CalWORKS program (the state’s welfare to work program that includes thousands of children and parents with disabilities or other special needs).
It also means – pending Legislative approval – that counties could face hundreds of millions of dollars in reductions, through borrowing.
Five of the six ballot measures linked to closing the state budget deficit, were defeated by overwhelming margins by angry California voters, rejecting Propositions 1A, 1B, 1C, 1D and 1E with 22% of the precincts reporting. All five measures trailed in the vote count since polls closed at 8 PM, by nearly identical margins.
In another sign at anger toward the Legislature and the Governor and state government in general, voters however approved by a landslide vote, only one of the six ballot measures, Proposition 1F, that would prohibit salary increases for elected state officials during times of a budget deficit.
Governor and Legislative Leaders Will Meet Wednesday
Governor Arnold Schwarzenegger, who spent the day meeting with President Barrack Obama in Washington DC, will meet Wednesday afternoon with the four legislative leaders – Senate President Pro Tem Darrell Steinberg (Democrat – Sacramento), Assembly Speaker Karen Bass (Democrat – Los Angeles), Senate Republican Leader Dennis Hollingsworth (Republican – Murrieta), and outgoing Assembly Republican Leader Mike Villines (Republican – Clovis) to discuss the worsening budget crisis. It is not certain if the new incoming Assembly Republican Leader Sam Blakeslee (Republican – San Luis Obispo), who takes the leadership position on June 1, will attend.
Democratic Leaders To Hold Press Conference On Budget
Steinberg and Bass will hold a press conference Wednesday regarding the outcome of the special election and their view of what happens next but not official comment from either office was released Tuesday evening.
Budget Conference Committee Holds First Hearing Thursday
The Budget Conference Committee – a joint committee of both houses composed of 3 members from the Assembly and 3 members from the State Senate – will hold its first hearing on Thursday, May 21, at the State Capitol in Room 4203, at a time still not yet determined (though likely in the morning). The committee will hear an overview from the Schwarzenegger Administration on the Governor’s proposed budget revisions.
Beginning next week, the Budget Conference Committee, which is chaired by Assemblymember Noreen Evans (Democrat – Santa Rosa), will hear and take public comment on the specifics of the Governor’s new proposals, including those calling for new spending cuts and reductions to regional centers, In-Home Supportive Services, Medi-Cal and other programs. Those hearing dates have not yet been announced – though will likely begin on May 26th.
Senate Republican Leader Says State Government “Fundamentally Broken”
Senate Republican Leader Hollingsworth said that the defeat of the ballot propositions was evidence that state government in Sacramento"…is fundamentally broken and needs to be fixed.”
Hollingsworth agreed with the Governor and Democratic legislative leaders about the dimensions of the worsening budget crisis, saying that “At this point in time there is not a lot of good options. All the options are bad. All the options are painful. The reductions in spending that we are going to see are not pleasant for anyone."
But he felt that the results in Tuesday’s special election also was a sign by voters against increasing taxes to solve the budget crisis saying that the State “…cannot ask people to sacrifice more when they are losing jobs, worry about paying their mortgage.”
NEXT STEPS
GOVERNOR
LEGISLATURE
SPECIAL ELECTION: 26TH STATE SENATE DISTRICT GENERAL ELECTION – CURREN PRICE WINS
With 49.7% (193 of 388) precincts partially or fully reporting as of May 19, 2009, 11:56 PM, Assemblymember Curren Price Jr., as expected, easily won this State Senate seat, which was vacant due to the resignation late last year of Mark Ridley-Thomas (who took office as a Los Angeles County Supervisor).
Curren’s election will mean there will be a vacancy in the Assembly, temporarily bringing down the Democrat’s majority of 51 seats to 50. That will mean to pass any measure requiring 2/3rds vote, will need all 50 Democrats plus four Assembly Republicans (instead of 3) until replacement for Price’s soon to be vacant Assembly seat is filled.
Cindy Varela Henderson (Peace & Freedom) 2,253 - 8.06%
Curren D. Price, Jr. (Democrat) 19,741 - 70.62% ***WINNER***
Nachum Shifren (Republican) 5,958 - 21.32%
SPECIAL ELECTION: 32ND CONGRESSIONAL DISTRICT PRIMARY – JUDY CHU APPARENT WINNER BUT FACES JULY 14TH RUN-OFF
With 86.5% (192 of 222) precincts partially or fully reporting as of May 19, 2009, 11:58 PM, former Assemblymember Judy Chu is the apparent winner of the primary, defeating State Sen. Gil Cedillo (Democrat – Los Angeles).
Chu will need to face the top Republican (and other parties) vote getter because she failed to win over 50%. The run-off or general election is set for July 14th, but the Democratic nominee is certain to win in this heavily Democratic district.
Teresa Hernandez (Republican) 3,580 - 8.28%
Stefan "Contreras" Lysenko (Democrat) 187 - 0.43%
Francisco Alonso (Democrat) 911 - 2.11%
Christopher M. Agrella (Lib) 496 - 1.15%
Betty Chu (Republican) 4,399 - 10.17%
Judy Chu (Democrat) 14,080 - 32.56% ***APPARENT WINNER**
Gil Cedillo (Democrat) 10,241 - 23.68%
Nick Juan Mostert (Democrat) 191 - 0.44%
Benita Duran (Democrat) 532 - 1.23%
Rafael F. Nadal (Democrat) 152 - 0.35%
Emanuel Pleitez (Democrat) 5,941 - 13.74%
David A. Truax (Republican) 2,533 - 5.86%
STATE BALLOT MEASURES
With 83.0% ( 14,437 of 17,393 ) precincts partially or fully reporting as of May 20, 2009, at 12:10 AM:
PROPOSITION 1A: Spending Cap and Rainy Day Budget Stabilization Fund
YES: 1,241,576 - 34.7%
NO: 2,331,845 - 65.3% ***DEFEATED***
PROPOSITION 1B: Education Funding. Payment Plan
YES: 1,358,010 - 38.0%
NO: 2,206,917 - 62.0% ***DEFEATED***
PROPOSITION 1C: Lottery Modernization Act
YES: 1,278,495 - 35.9%
NO: 2,275,337 - 64.1% ***DEFEATED***
PROPOSITION 1D: Prop 10 Children's Services Fund Shift
YES: 1,240,774 - 34.9%
NO: 2,311,307 - 65.1% ***DEFEATED***
PROPOSITION 1E: Prop 63 Mental Health Fund Shift
YES: 1,211,809 - 34.2%
NO: 2,322,118 - 65.8% ***DEFEATED***
PROPOSITION 1F: No Salary Increases for Elected Officials During Budget Deficits
YES: 2,648,879 - 74.4% ***PASSED***
NO: 911,579 - 25.6%
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