Lawmakers agree on issues with local impact, such as judges, economic task force.

By E.J. Schultz / The Fresno Bee

Lawmakers negotiating the state’s budget headed into the weekend with some significant issues to resolve. But they’ve reached consensus on several items watched closely by the Valley, including money for a worker-training program and funding for San Joaquin River restoration.

One open issue is a proposal to add new judges, a concern being watched closely by the Fresno-area legal community. Local economic development officials, meanwhile, are still hoping lawmakers restore a $5 million request for an economic task force.

The decisions are being made as the state finds itself with a windfall of new tax revenues thanks to an improving economy.

Republicans are pushing for more money to be dedicated to paying down the state’s structural deficit. Assembly Member Rick Keene of Chico, one of two Republicans on the budget conference committee, said the Democrat-controlled committee is adding too many new spending programs.

“We’re actually making our deficit picture worse, which is something we don’t find acceptable,” he said.

Gov. Schwarzenegger’s revised $131 billion budget proposal, released last month, would cut the state’s operational deficit to near $2.5 billion, the governor said. Keene said he would like to see the deficit cut closer to $1 billion.

The fiscal year begins July 1, and the deadline to reach a budget deal is Thursday, though lawmakers routinely miss the cut-off date.

Here’s a look at some budget issues of interest to the Valley:

A compromise reached last week will allow the Fresno County Workforce Investment Board to keep about $840,000 in worker-training funds that were threatened as a result of a funding formula change.

The board was in danger of losing the sorely needed money as a result of a decision by the federal government, in a cost-cutting move, to no longer collect mass layoff data on agricultural and government workers. The state uses such information when determining how much money to distribute to local work force boards for dislocated worker training.

The change, in effect, takes money away from rural counties in favor of urban counties. In total, 21 rural counties would have lost about $3 million.

The Schwarzenegger administration stepped in this year to fill the gap by moving money from another fund. But the administration had no plans to do the same thing for next fiscal year.

The Workforce Investment Board lobbied for the money and the Senate-Assembly budget conference committee responded. The compromise calls for the administration to plug the gap again next year. It also requires the state to study a more permanent solution that could result in a change to the funding formula.

Blake Konczal, the Fresno County board’s executive director, is pleased with the compromise. With the board’s overall budget on the decline, “this little $840,000 becomes even more important for us,” he said.

The compromise still must be approved by the full Senate and Assembly and signed off by Schwarzenegger.

Valley officials are still holding out hope that budget money is included for the California Partnership for the San Joaquin Valley, an economic task force appointed by Schwarzenegger. The conference committee rejected a $5 million budget request, but Valley officials have lobbied the committee to reconsider the matter.

“I’m pretty confident that we’ll see some kind of funding,” said Ashley Swearengin of the Fresno-area Regional Jobs Initiative.

But Keene said there has been no discussion on the matter, “so I don’t know where that stands.”

Also being watched is a proposal to include new money to add judges across the state. The Assembly version of the budget would add 20 judges, while the Senate version adds 50.

Assembly Member Juan Arambula, D-Fresno, said 50 judges would be only a “small down payment” on what is needed across the state. The need is particularly great in the fast-growing Valley, he said.

If 50 judges are approved, Fresno County is expected to get two. That still would be at least five times short of what’s needed, said Brad Hill, a former Superior Court judge who was recently appointed to the 5th District Court of Appeal.

One issue that appears to be settled is how much state money will be dedicated to San Joaquin River restoration next year. The conference committee agreed to commit $750,000 in bond money for the project next year.

A legal settlement now under negotiation would refill dried sections of the river by increasing flows from Friant Dam. Fish ladders might need to be installed, channels widened or narrowed and levees rebuilt. Costs for the project have been estimated in the vicinity of $100 million.

But Sen. Dean Florez, D-Shafter, said the $750,000 allocation is an important first step: “It may well be the glue that holds together a deal that gets more water for the users and helps restore the lower San Joaquin River.”

The reporter can be reached at eschultz@fresnobee.com or (916) 326-5541.