SACRAMENTO – The California Assembly today approved six emergency spending and revenue bills to ensure the state pays its bills in the current fiscal year.

Speaker Fabian Núñez (D-Los Angeles) said today’s vote indicates the California Legislature is prepared to balance a budget worsening by the minute.

“Voters need to take note what is happening in Sacramento. This budget is not going to get balanced without California voters intervening.  Otherwise we will be deadlocked,” Speaker Núñez said.   

The Speaker is pleased today’s vote helped resolve part of the looming budget deficit for next year because there are serious cuts coming this summer. The next solution, he said, must include both new revenues and spending reductions because cuts alone will not resolve California’s deficit.

The bills, AB 3xxx, 4xxx, 5xxx, 6xxx, 7xxx, and 8xxx address general fund allotments, education, public health, social services, transportation, and general government spending respectively. The bills were sent to the State Senate, which approved the bills and sent them to the Governor’s desk. The Governor is expected to sign the bills.

The bills:

• Convert this year’s $3.7 billion deficit to a $1 billion reserve;
• Avoid the Governor’s proposed cuts on cost of living adjustments for SSI and CalWorks through deferrals of adjustments until later in the year;
• Utilize $500 million in unspent/unallocated money not accounted for in the Governor’s budget proposal to preserve education funding; and
• Schedule cuts on Medi-Cal to begin in July, providing the legislature an opportunity to develop alternative spending cuts or additional revenue sources.

AB 10xxx, a measure to close the yacht tax loophole, narrowly failed to garner the two-thirds vote necessary for passage, with only five Republicans in the Assembly supporting the bill. Closing the yacht tax loophole would have increased state revenues by $5 million in 2007-08 and $21 million in 2008-09 and each year thereafter. The State Senate approved the yacht tax loophole with some Republican support. Democratic leadership is committed to passing the yacht tax loophole this year.

The Assembly continues to negotiate with stakeholders to address next year’s projected $14.9 billion budget deficit. Assembly Democrats are committed to a solution that balances cuts with new revenues, and the Caucus considers preserving education spending to be its top priority.

The following audio links include Speaker Núñez’s comments following today’s vote.

Speaker Fabian Núñez comments on today’s budget solutions passed by the Assembly. (3:42)

Speaker Fabian Núñez says he’s distressed that cuts had to be made to Medi-Cal. (:29)

Speaker Fabian Núñez says he’s glad the education budget changes will not affect the Prop 98 guarantee or the classroom. (:16)

Speaker Fabian Núñez says the current year budget cuts made by the Legislature went further than the Governor requested. (:19)

Speaker Fabian Núñez says the Legislature used a more surgical approach to the budget cuts than the Governor’s request for a 10-percent across the board “sledgehammer” approach. (:18)

Speaker Fabian Núñez says today’s actions were a good start to solving the budget problem for 2008/09 but says a balanced approach will be needed to deal with the rest of the fiscal crisis.(:31)

Speaker Fabian Núñez says the 2008/09 budget problem will not be solved with spending cuts alone. (:33)