Last week, the Budget Conference Committee began its discussions and review of the many proposals that have been offered to balance the state’s books and bridge a $19.1 billion budget deficit.
Committee members, appointed by the Senate President Pro Tempore and the Assembly Speaker, include Senators Denise Moreno Ducheny (D-San Diego), Mark Leno (D-San Francisco), Alan Lowenthal (D-Long Beach), Bob Dutton (R-Inland Empire), Bob Huff (R-Diamond Bar) and Assembly Members Bob Blumenfield (D-Van Nuys), Connie Conway (R-Visalia), Felipe Fuentes (D-Los Angeles), Jim Nielsen (R-Biggs) and Nancy Skinner (D-Berkeley).
On Wednesday, June 2, State Controller John Chiang sent a letter and chart to the governor and legislative leaders reporting on the latest cash projections based on actual numbers through April and the governor’s May Revision budget proposal. Controller Chiang announced that the state appears to have sufficient resources to meet all of its payment obligations and maintain a prudent cash cushion to address unanticipated developments through the month of August. However, he warns that a protracted budget stalemate or the passage of a “get-out-of-town budget” will create cash shortfalls starting in October, requiring the controller’s office to begin aggressive cash management measures, such as issuing IOUs, well in advance of any projected shortfall.
This week, the Budget Conference Committee will hear and deliberate on the three different budget proposals released by the governor, Assembly and Senate. The agenda, by policy area, can be viewed here.