CDCAN Report #126-2011, Wednesday June 15th 2011

No Extensions of 2009 Temporary Tax Increases In Budget Package – Heads To Assembly For Final Action Today – Assembly Democrats Will Also Pass Budget Plan On Majority Vote

SACRAMENTO, CALIF  (CDCAN)  [Last Updated 06/15/2011  01:18 PM] -  The State Senate, which convened at 10:00 this morning, passed on a majority vote, the revised main budget bill that does not extend the 2009 temporary tax increases, but instead relies on other one-time accounting measures, fund shifts, some additional reductions impacting higher education and redevelopment agencies (but not to K-12 education or to health and human services).  The package also included increases in sales tax, vehicle registration fee and what is referred to as the “Amazon.com” tax that were done in such a way as to avoid the State constitutional requirement of a 2/3rds vote approval – and instead were passed by a simple majority vote. 

The vote on the revised main budget bill – AB 98 was strictly on a party-line vote of 23 to 15 .  The Senate is still in session to act on several budget related bills (referred to as budget trailer bills) including those that increase the state sales tax, vehicle registration fee and the so-called “Amazon.com” measure that contain the other parts of the 2011-2012 State Budget in terms of revenue. 

The Assembly, which currently is session but with both parties in caucus, will take up all these bills today and is expected, like the State Senate, to approve them on a majority vote and then send the entire package of bills to the Governor sometime today. 

Combined with the various budget trailer bills – and also SB 69 that the Legislature passed on March 17^th but never sent to the Governor, and the budget trailer bills passed and approved in March that contained most of the health and human services cuts, comprises the 2011-2012 State Budget spending plan. 

The spending cuts passed today are in addition to what the Legislature approved – through its budget committees, in late May and early June – and what the Legislature passed and the Governor approved in March. 

While the outcome was known – some 13 senators , besides Senate President Pro Tem Darrell Steinberg (Democrat – Sacramento), rose to speak for or against the majority vote budget proposal for about an hour. 

Republican senators Huff, Berryhill, Canella, Strickland, Wyland and Senate Republican Leader Dutton spoke in opposition – while Democratic senators Leno (who introduced the revised budget bills), Evans, Vargas, Pavely, Hancock, Padilla, Alquist and Corbett spoke in support.

Democrats control the 40 member State Senate with 25 seats, with Republicans holding 15.  A 2/3rds vote in the Senate is 27 votes – meaning if all Democrats vote for a measure requiring such a vote threshold, then at least 2 Senate Republican votes are also needed.

CDCAN will issue a more detailed report once the Assembly has completed action on the package of budget bills today. 

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