No deal has been negotiated yet and the Big 5 continue to meet today. Yesterday, legislative leaders emerged from Big 5 discussions disappointed but making progress. Details have yet to be released although a suspension of Proposition 1A is still in negotiation.
If your district has not already done so, please send a letter to your legislator voicing your opposition to a suspension of Prop 1A. Your district may also adopt a resolution finding a severe fiscal hardship will exist if local property tax revenues are shifted to the state. A sample letter and sample resolution can be found on the Protect Special Districts’ Services section of the CSDA website.
Last week, Governor Arnold Schwarzenegger declared a state of emergency due to the budget impasse. The governor also announced the return of “Furlough Fridays” and an additional furlough day for state workers, a grand total of three furlough days a month. The third furlough day imposed on state workers, starting July 10 through June 2010, is expected to save the state $425 million.
In addition, the governor called a new special session, ordering lawmakers to tackle the budget crisis. He threatened to veto any legislation unrelated to the budget until an agreement is reached, which resulted in dozens of bills being fetched from the governor’s desk to be held in engrossing and enrolling until the budget ordeal is over.
Finally, IOUs were issued last week, after lawmakers were unable to compromise on a budget package that would have solved the entire budget deficit. IOUs went out to private vendors and local governments, mostly counties who administer various welfare and social service programs on behalf of the state.