GOP legislators don’t support spending plan; Dems more optimistic.

By E.J. Schultz / The Fresno Bee

A vote is expected Thursday on a state spending plan that includes money for a high-speed rail system and boosts funding for a children’s health-care program used by Fresno County.

If it’s approved, lawmakers would beat the midnight deadline for a budget deal -- a target that has been missed in recent years.

But Republicans on Monday said they weren’t willing to go along with the proposal as it stands. “There are no Republican votes,” said Senate GOP Leader Dick Ackerman of Fullerton.

Asked whether a deal could be reached by Thursday, he said “you never say never.”

Democrats sounded more optimistic.

“We are much closer together than we’ve been at this point in previous years,” said Senate Budget Chairman Wesley Chesbro, D-Arcata.

The Democratic-controlled budget conference committee wrapped up its work during the weekend. Remaining issues are expected to be hammered out by the so-called “Big Five”: Gov. Schwarzenegger and the Republican and Democratic leaders of both houses. The budget, which covers the fiscal year beginning July 1, requires two-thirds approval by the Senate and the Assembly.

Valley officials hope leaders reinsert a $5 million earmark for the California Partnership for the San Joaquin Valley, an economic task force Schwarzenegger appointed. The budget conference committee voted to deny the $5 million.

“I don’t think anybody has been singled out here,” Chesbro said. Noting that many proposals were voted down, he said “it’s more of a question of trying to control our appetite” for spending.

Still, he said, the item is “on the list of things that are open for discussion.”

Bright spots for the Valley include $13 million for a proposed $35 billion high-speed rail system that would cut through Fresno. The money would go for engineering and acquiring right of way.

Rail proponents hope to secure $116 million for the project in the next two years to keep momentum until voters take up a multibillion-dollar rail bond measure. The vote is scheduled for November, but it is expected to be delayed to 2008.

Gov. Schwarzenegger had budgeted only $1.3 million for the California High-Speed Rail Authority.

Department of Finance spokesman H.D. Palmer declined to comment on the specifics, saying the governor was still reviewing them.

Republican sore points include a proposal to put $1 billion into a “debt repayment reserve account.” It differs from the governor’s plan to use the money to pay off bonds.

“If the goal is to pay down debt, let’s pay down debt,” said Sen. Chuck Poochigian, R-Fresno. He is worried the reserve account would be spent instead of used to pay off debt.

The conference committee also differed with the governor on how one-time revenues should be distributed to schools. The governor earmarked the money for specific programs. The committee voted to distribute it most of it via block grants. Democratic leaders said this gives schools more flexibility.

One of the more controversial proposals involves children’s health-care programs.

The conference committee agreed with Schwarzenegger’s request to give $23 million to help counties remove an estimated 24,000 uninsured children from waiting lists. The so-called Healthy Kids program extends benefits to families who earn too much to qualify for Medi-Cal and other programs but cannot afford private insurance.

Fresno County is one of 18 counties participating in the program. Nearly 885 children in the county participate, but 148 children are on a waiting list.

Differing with the governor, the conference committee added language aimed at covering all of the estimated 800,000 children in the state who don’t have coverage. The expansion would be phased in beginning in 2007-08. The cost would be $300 million, according to supporters.

Republicans protested that the change would result in more undocumented immigrants getting coverage.

Assembly Member Juan Arambula, D-Fresno disagreed. He said laws mandate emergency room coverage for all.

In the long run, he said, it is cheaper for the state to offer preventive treatment than to wait until problems get worse.

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