by: Elizabeth Sedway, TahoeKidsGuide.com
At 3:50 on Monday, June 15th, the Budget Conference Committee voted in favor of an alternative to Governor Schwarzenegger's proposal to present to the California State Legislature. While the Governor proposed withdrawing all General Fund support and closing 220 state parks, the committee today voted in favor of an alternative that would purportedly keep all California State Parks open.
The committee's alternative proposal is to impose a $15 fee per registered vehichle to fund California State Parks. Those driving California registered vehicles would then be given free day use of all California State Parks. Linsey Fredenburg, Legislative Coordinator with the California State Parks Foundation had the following comment about the committee's action today:
The Budget Conference Committee took action to (1) eliminate the General Fund support for the state park system, and (2) enact the State Park Access Pass at $15. The vote was split along party lines, with only Democrats voting for it, and all Republicans on the committee voting against.
Fredenburg looks upon the committee action today with '...one part celebration, and one part caution. Because the vote did not gain Republican support, its fate as part of the final budget package is far from certain'.
While the committee's proposal is likely to please those seeking to keep California State Parks open, a remaining hurdle for the California Legislature is to approve a budget before the state runs out of money.
On June 2nd, Governor Arnold Schwarzenegger and the state's chief accountant, California State Controller, John Chiang, warned lawmakers that they have until June 15 to close the state's current $24 billion budget deficit. 'California's day of reckoning is here,' Mr. Schwarzenegger said in an unusual address before a joint legislative session. 'We have no time to waste.'
In a letter, dated May 29, 2009, addressed to the Governor, President Pro Tem of the the Senate, Darrell Steinberg, Speaker of the House, Karen Bass and others, Mr. Chiang called attention to the critical nature of the June 15th budget deadline:
Failure to immediately address the budget deficit and cash shortage will severely damage our already fragile fiscal position. A protracted stalemate would do immeasurable harm to our economy by potentially extending a recession that many economists predict will bottom out by early 2010. Inaction would create an even greater fiscal hardship for Californians, especially those businesses that provide goods to the State and those vulnerable individuals who depend on public health and social services. The ability of the State to discharge its most fundamental duties of protecting its citizens, educating its youth, and safeguarding its natural resources will be compromised.
If the California legislature does not have an approved budget by June 15th, the state will run out of cash by the end of July, according to Mr. Chiang. Without an approved budget, California will not be able to secure loans needed this summer. California must borrow money almost every summer because it pays out most of its funds in the first half of the fiscal year, from July to December, and receives most of its revenue in the second half of the year.
According to Mr. Chiang, these loans take about a month to acquire. He said banks would be unwilling to lend to a state government that doesn't have a balanced budget, especially during an economic crisis. 'If you or I went to the bank,' he said, 'without a plan to pay them back and asked for a loan, the bank would laugh at you.'
Also on June 2nd, Assembly Speaker Karen Bass told reporters that the legislature would likely need the rest of the month to close the entire deficit, but that lawmakers could pass a partial solution, by June 15th, that would allow the state to borrow the needed funds.
In his address Tuesday, Mr. Schwarzenegger acknowledged the severity of his budget proposals. He has proposed major cuts to education, health care and prisons, and has called for shutting down the 220 state parks and eliminating popular health-care programs. This week, the Budget Conference Committee has been hearing public testimony on these proposed cuts. To submit written testimony to the Budget Conference Committee, fax your Comment Card to: (916) 319-2199.
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