SACRAMENTO—Assemblywoman Anna Caballero (D-28) issued the following statement regarding the Legislature’s failure to pass solutions to ease the state’s massive $28 billion budget crisis.

“Today the Legislature voted on two measures designed solve an urgent fiscal crisis facing our state.  One measure would raise $8.1 billion in new revenue, and one would cut $8.1 billion in critically important state services.  These measures responded directly to Gov. Schwarzenegger’s request that the Legislature act immediately to cut current costs and raise revenue. Unfortunately, both these measures failed because they did not receive the two-thirds vote required to pass.

“These are painful votes for all of us.  We don’t want to cut services to people trying to find work, to the disabled and to the regional centers that save they state millions by helping disabled people preserve their independence. 

“But California faces a problem of massive proportions – one that gets worse the longer we wait to close the size of the budget gap. Two months following the passage of our long-delayed state budget, a national and worldwide economic meltdown has resulted in a sudden and massive drop in state revenues.  The nonpartisan Legislative Analyst projects a $28 billion state budget deficit over the next 19 months.  The immediate problem is an $11.2 billion deficit in the current budget, followed by a $13 billion next year, and increased budget needs.

“I am deeply disappointed that, in the face of the most severe fiscal crisis since the Great Depression, our Republican colleagues once again refused to vote to cut state costs, and to increase state revenues.  And they are not willing to provide specific alternatives to the proposals that we put forward.

“Today’s lack of action vividly illustrates the importance of changing the way we put together a budget in the State Capitol. 

“A state treasurer representative today told us that by February the state will run out of money.  We can’t even sell our voter-passed infrastructure bonds, because the state credit rating is so weak. 

“Clearly, we need to do things differently in California.  The traditional, ideological differences that

keep us from reaching across the partisan aisles have got to change.  Our state is suffering.  Our
citizens expect us to lead.  They expect us to bury our political differences, and work together to find solutions to our state’s fiscal crisis.

“Our fiscal problems are not due solely to the national economic meltdown.  Without doubt, some are due to our unique budget rules in California.  This crisis underscores the urgent need to work together on meaningful reforms that will end our budget boom and bust cycles. 

“But our most immediate need is simply to work together.