Chiang Docks Lawmakers’ Pay; Brown Mulls New Budget Plan

On Tuesday, state Controller John Chiang (D) announced that he would withhold California legislators' pay because an analysis by his office determined that the spending plan they passed last week was not balanced, the Los Angeles Times reports.

The announcement riled legislative leaders and intensified pressure on budget negotiations as the July 1 start of the new fiscal year nears (Goldmacher, Los Angeles Times, 6/22).

Background

In March, Brown signed budget bills that included deep cuts to education and health and human services. He initially sought to close the remaining $9.6 billion deficit by imposing additional cuts and holding a special election on taxes. However, Republicans refused to support the tax plan.

Democrats then crafted an alternative budget package that left out the tax measures, allowing them to pass their plan with a simple majority vote. Their package included spending cuts, fees and accounting maneuvers that Brown had criticized during his campaign.

Although lawmakers passed their budget by the June 15 constitutional deadline, Brown vetoed the plan one day after its passage. The governor said the package "contains legally questionable maneuvers, costly borrowing and unrealistic savings" (California Healthline, 6/20).

Pay Blockade Details

Chiang's analysis found that the Democrats' budget plan included $89.75 billion in spending while generating only in $87.9 billion in revenue, leaving a $1.85 billion imbalance (Buchanan, San Francisco Chronicle, 6/22). In the report, the controller called elements of the Democrats' budget package "miscalculated, miscounted or unfinished" (Los Angeles Times, 6/22).

Chiang said he did not evaluate certain budget provisions that are under facing legal action, such as a plan to take $1 billion from the First 5 early childhood health and education program (Yamamura, Sacramento Bee, 6/22).

Rank-and-file legislators earn $95,291 annually and will lose about $400 per day until they pass a balanced spending plan. Legislative leaders earn $109,584 annually and will lose $450 per day while the budget remains in flux (Harmon, Contra Costa Times, 6/21).

The suspension of pay is expected to curb state spending by about $50,000 per day (San Francisco Chronicle, 6/22).

Lawmakers' Response

Senate President Pro Tempore Darrell Steinberg (D-Sacramento) said Chiang's decision to dock pay could be considered a conflict of interest (Contra Costa Times, 6/21). He said the governor and finance officials should not have the authority to control the pay of independently elected lawmakers, noting that such authority could disturb the balance of power in California's government.

Assembly Speaker John Pérez (D-Los Angeles) called Chiang's decision "wrong" and said it would empower GOP legislators to continue pushing for deeper cuts to close the state deficit.

Assembly member Shannon Grove (R-Bakersfield) said the pay docking "hurts," but added, "I applaud the controller for upholding the will of the voters" (Los Angeles Times, 6/22).

Sen. Sam Blakeslee (R-San Luis Obispo) also praised Chiang's decision. He said, "Utilizing the controller's office to finally put a halt to budget games will return accountability to our budgeting process and force the Legislature to do its job honestly" (San Francisco Chronicle, 6/22).

Brown Promises New Plan

Meanwhile, Brown recently told Democratic lawmakers that he has been preparing a new budget proposal that he could present as early as today. According to the Los Angeles Times' "PolitiCal," the plan is expected to include deeper state spending cuts to replace the tax measures that Brown originally proposed.

Sen. Kevin de León (D-Los Angeles) said the governor did not specify whether the plan would need GOP support, but described it as "a vote people could live with" (York/Mishak, "PolitiCal," Los Angeles Times, 6/21).

Editorials

Headlines and links to editorials on Chiang's decision are provided below.

• "Chiang Made Right Call on Pay Halt" (Contra Costa Times, 6/21).
• "You Go, John" (Eureka Times-Standard, 6/22).
• "Budget Bungling Hits Legislators in Wallet" (Orange County Register, 6/21).
•  "Chiang's Call on Pay Is a True Public Service" (Sacramento Bee, 6/22).
• "John Chiang Did the Right Thing" (San Francisco Chronicle, 6/22).
• "John Chiang: Our New Hero" (San Jose Mercury News, 6/21).
• "Withholding Legislators' Pay an Attention-Getter" (Santa Cruz Sentinel, 6/22).
• "No Budget, So No Pay" (Stockton Record, 6/22).
• "State Controller Says No Reward for a Job Poorly Done" (Ventura County Star, 6/21).

Broadcast Coverage

Headlines and links to broadcast coverage on the controller's announcement are provided below.

• "State Controller To Lawmakers: No Balanced Budget, No Paycheck" (Russ, "KXJZ News," Capital Public Radio, 6/21).
• "State Lawmakers Won't Be Paid Until a Balanced Budget is Passed" (Small, "KPCC News," KPCC, 6/21).