Laird Issues Budget Conference Report on 08-09 State Budget

SACRAMENTO – Assembly Budget Chair John Laird (D-Santa Cruz) today issued the Assembly Budget Committee’s Conference Report on the 2008-2009 State Budget.  To view the report, go to: http://democrats.assembly.ca.gov/members/a27/pdf/ConferenceReportJuly2008.pdf

Key differences between the Conference-approved budget the governor’s May Revise budget:

• Puts Education First.  The Conference version puts education back as a key priority for the state by restoring over half of the governor's $4.3 billion cuts to schools, and does not put education at risk of losing another $5 billion in lottery funds.

• Balanced in Every Year.  The Conference version balances the budget each year with a fiscally responsible approach of tough spending cuts and new revenues, while the governor's proposal relies on unacceptable draconian cuts and accounting schemes to temporarily balance the budget – only to see massive deficits return in just a year or two. 

• No Risky Accounting Schemes.  The Conference version does not rely on any risky accounting schemes, while the governor's proposed reserve is made up almost entirely of revenues derived from his risky accrual proposal.

• No Draconian Cuts to Health Care and Social Safety Net.  The Conference version contains very tough cuts to health on human services, but it restores the most draconian cuts to the elderly, the disabled and the children of California. 

• Lottery Securitization. Due to the uncertainty that the lottery securitization could be achieved in the budget year, the Conference version does not include lottery securitization.  While the Conference version rejects the governor's lottery proposal which would simply use the securitization proceeds for General Fund Relief, lottery securitization does remain a viable option for repaying debt and helping improve California's long-term budget solution while also providing a long-term increase in funding for schools.

• No "Reform" Proposal.  The Conference version provides a responsible, balanced budget in line with existing Proposition 58 reforms, rather than the governor's proposal to avoid the Proposition 58 reforms entirely and instead turn to a new “reform” that shifts power to the Executive and forces billions of dollars of automatic, across the board cuts – even in years with adequate revenues.

To view the report and for more information on the State Budget, go to: http://democrats.assembly.ca.gov/members/a27/budget08.htm