Legislators struggle to settle state budget

By Natalie Banach

BRUIN SENIOR STAFF

[email protected]

As politicians and their families left the capital over the
weekend to celebrate the nation’s independence, the
state’s budget remained on the bargaining table,
unresolved.

Gov. Arnold Schwarzenegger met with legislators throughout last
week with the hope of coming to a timely agreement on the budget,
but local governance issues caused a rift between the two
parties.

On July 1, the state’s new fiscal year began without a
budget for the ninth time in 11 years. And the repetitive delays
have made the passage of the budget a priority for the
governor.

The main issue still waiting to be resolved regards the
financing of local governments, which in particular deals with $2.6
billion in savings that can help balance next year’s
budget.

In May, local officials consented to $2.6 billion in cuts over
the next two years, in exchange for Schwarzenegger’s support
for an amendment aimed at permanently protecting the treasuries of
cities, counties and special districts.

But, the Democrats drew up an alternate plan which is designed
to give the state broad new powers to allocate money to cities.

When lawmakers return to the capitol on Tuesday they will be
expected to smooth over all their issues by both sides as soon as
possible.

Last week, one of the poignant disagreements dealt with state
universities. And while the governor and the Legislature came to an
agreement over the state universities, specifics are being withheld
until the whole budget is agreed on.

Concerning the state universities, many lawmakers are
disappointed and angered over the fact that this is the first year
that the Master Plan for Higher Education was not met.

The Master Plan was instituted in 1960 in an attempt to plan the
future of California’s state universities with a specific
commitment to ensuring accessibility.

“The speaker made it clear to the governor that adhering
to the Master Plan for Higher Education is a priority. … The
governor is aware of that,” said Nick Velasquez, a spokesman
for Assembly Speaker Fabian Nuñez, D-Los Angeles.

Furthermore, Assembly Democrats said funding to help the state
universities meet the Master Plan could be found.

“Various things can be done and it’s a priority for
the Speaker for all qualified students to go to college,”
Velasquez said.

While lawmakers work toward finalizing a budget, members of the
University of California are skeptical about the real advantages
that will come to students.

The university entered into a compact with the governor in May,
which stated that the universities’ budget would be cut by
about $372 million in exchange for Schwarzenegger’s promise
that funding would increase at the start of the 2005-06 academic
year.

Due to stipulations within the May compact, “the
Legislature is under no obligation to allocate money under the
compact,” said George Blumenthal, vice chair of the UC
Academic Senate.

Therefore, university officials say they believe that the budget
delays will not have a serious affect on the UC.

“It is unlikely that any delays in enactment of the state
budget will have an impact on the UC this year,” said Vice
Chancellor for Finance and Budget Steve Olsen, in an e-mail.

Because the university’s procedures are more insular than
state agencies the delay does not matter very much, Blumenthal also
said.

“Basically, the money being discussed for the UC is
what’s in the compact plus enough money to enroll Guaranteed
Transfer Offer students,” Blumenthal said.

In the fall, the Democrats insisted that money go to fund
Guarantee Transfer Offer students, who were previously eligible to
attend a UC but were directed toward community colleges.

And while the UC may not be severely affected by the budget
delays, lawmakers hope to iron out the wrinkles in the budget
soon.

“Until now, he’s (Schwarzenegger) really been the
cheerleader for bipartisan cooperation,” said Barbara
O’Connor, director of the Institute for the Study of Politics
and the Media at California State University, Sacramento.

“It’s breaking down because, occasionally, you also
have to take positions that are not popular. He’s at the
point now where he’s going to anger one side or the
other,” O’Connor added.

With reports from wire services and Menaka Fernando, Bruin
senior staff.