Treasurer Urges Brown To Reject Bill To Adjust Triggered Budget Cuts
On Tuesday, the state treasurer's office urged Gov. Jerry Brown (D) to reject a bill (ABX1 20) that would require him to consult with other lawmakers about previously approved cuts within the state budget package, the AP/San Jose Mercury News reports.
The plea comes after Treasurer Bill Lockyer (D) began offering to the public a total of $5.4 billion in short-term borrowing notes so the state would be able to cover its operating needs. Investors have ordered more than $3 billionÂ of the notes, which mature in June 2012.
In June, state lawmakers passed an $86 billion budget plan that depended on strong revenue projections. The state anticipated it would take in $4 billion more in tax revenue than was expected in Brown's earlier version of a budget plan.
The state controller's office recently reported that general fund revenues already are short of estimates this fiscal year. In December, more spending cuts could be triggered if tax revenues fall short of assumptions (Lin, AP/San Jose Mercury News, 9/13).
Triggered cuts could include:
- $100 million from services for individuals with developmental disabilities; and
- $100 million from the In-Home Supportive Services program for the elderly and people who are blind or have disabilities (California Healthline, 8/17).
Issues Surrounding Bill
The treasurer has said the original budget provision for triggered cutsÂ offered stabilityÂ to investors, and Brown recently said that he did not want to suggest any uncertainty to credit-rating agencies.
Tom Dresslar, a spokesperson for the treasurer, said having Brown consult with lawmakers about the triggered cuts would be a "complication that does not serve the best interest of the taxpayers."
Sen. Mark Leno (D-San Francisco) -- chair of the Senate Budget and Fiscal ReviewÂ Committee --Â said the Legislature was seeking flexibility and transparency from the Brown administration.
Leno added that the bill should not concern investors because it does not aim to weaken Brown's authority to make the cuts if necessary. Instead, the bill would make the administration consultÂ legislative leaders by Dec. 9, before the Dec. 15 deadline for the triggered cuts (AP/San Jose Mercury News, 9/13).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.