California Budget Crisis Diaries: Lawsuit targets Schwarzenegger

This story was reported for the San Diego News Network on August 7, 2009.

See original copy of story.

Legislative leaders may be out for summer session but their vacation can’t be too sunny. The cuts throughout the budget – which was signed into law July 28 – are gradually sinking in. Some agencies still don’t understand the impacts, while others continue to receive IOUs, and now, Gov. Arnold Schwarzenegger is facing a lawsuit.

Legalities of one-line veto item: Senate President Pro Tem Darrell Steinberg (D-Sacramento) will file a lawsuit against Schwarzenegger early next week that contends the Gov. violated his constitutional authority in making line item vetoes to portions of the legislature’s budget revision bill.

Titled “Steinberg v. Schwarzenegger,” Steinberg criticized Schwarzenegger for punishing Californians.

“We elected a governor, not an emperor,” Steinberg said. “In making these line item vetoes the Governor forced punishing cuts on children, the disabled and patients that he couldn’t win fairly at the bargaining table. And in doing so, he overstepped his constitutional authority.”

But Schwarzenegger’s spokesperson Aaron McLear said his move was completely legit.

“The governor’s constitutional authority to veto appropriations is unquestioned and will be upheld by the courts,” McLear said. “Because the legislature failed to send him a balanced budget after months of debate the Governor was forced to make these difficult cuts.”

“While Democrats are focused on a protracted legal battle to dig the state back into deficit the governor will continue to focus on moving our state forward and getting Californians back to work.”

Before signing the budget into law, Schwarzenegger was forced to use his executive one-line veto power to cut roughly $489 million. On the hit list included various social services offered throughout the Golden State (we’re still considered Golden, right?).

A legislative council, hired by lawmakers, says his move was illegal – yes, illegal.They say Schwarzenegger was not allowed to change the Big 5 budget agreement.

So why was the governor forced to make the cuts?

After the Big 5 (Schwarzenegger and legislative leaders) reached a budget agreement on July 20, two of their 31 proposed bills were an oil drilling plan and a deal to take Highway Users Tax Account money (a.k.a. gas tax money). But the Assembly rejected both (which may have been smart, considering local governments had a lawsuit ready against the gas tax proposal).

That meant Schwarzenegger was forced to choose where to cut.

What’s going to happen now that a legislative council claims the move was illegal? Who knows – Sacramento is so unpredictable.

An ailing time: According to Gary Rotto, director of health and fund development at the Council of Community Clinics, the cuts made to health services are still murky.

Rotto said he is aware of the elimination of:

– Seasonal Agricultural Migratory Workers, a program which offers health care services in rural and urban areas.
– Rural Health Services Department, which offers health services to “medically underserved rural and urban areas.”
– State Indian Health Programs, which offers health services to those living in urban, rural, and reservation or rancheria communities.”

In addition, community clinics know a cut has been made to Traditional Clinic Programs and Expanded Access to Primary Care., which took a 65 percent overall hit.

Overall, cuts were made to 19 areas of health services in the state. Countywide, six areas of services have been eliminated or reduced by major portions.

On a side note, next week is National Health Center Week.

I still owe you: Yes, state Controller John Chiang’s office is still distributing IOUs. That’s because the budget hasn’t stopped the need for cash, just yet.

Summed up well by San Francisco Chronicle columnist Kathleen Pender, Treasurer Bill Lockyer’s office must be able to pay all the IOUs already distributed before Chiang’s people can stop issuing them.

So far, it’s estimated the state has issued about $1.78 billion in IOUs.

Some state agencies have been taken off the IOU list like local Noah Homes. Noah Homes, a home for San Diegans with developmental disabilities, received one $185,000 IOU last month. But, according to the organization’s CEO Molly Nocoon, Noah Homes won’t be getting the same note again.

An educated sacrifice: The UC system, which devoured its cut of more than $800 million for 10 state-wide campuses, is asking its community to share the sacrifice.

“Everyone in the UC community is being asked to share the pain of our short-term solution, which is just one step toward finding the best ways to ensure long-term excellence and access for students and everyone we serve,” said UC President Mark G. Yudof.

The UC Board of Regents issued furloughs, and increased utility and health care costs. In addition, a new UC group titled, “A Commission on the Future of the UC” will work to re-examine the university’s services and determine how to preserve its campuses without the state’s funding – a move that may be smart considering the system has 30 percent of students on Pell Grants.

At the CSU system, one-day-a-month furloughs began on Aug. 1. The furlough will affect those of the California Faculty Association and the Academic Professionals of California, whose members both agreed to the furlough.

The move is set to help alleviate some of the pain from the state cut of $564 million. In addition, the CSU system will reduce enrollment by 40,000 students over the next two years to its 23 campuses.

“We appreciate that we were able to come to an agreement with these two unions because furloughs will help to save jobs, preserve employee health and retirement benefits, and ultimately, allow us to better serve students,” said CSU Vice Chancellor for Human Resources, Gail Brooks. “Unprecedented reductions in state funding have left CSU with an enormous budget deficit, and reducing our employee costs is a critical part of CSU’s action plan to address this shortfall.”

Hoa Quach is the political editor for the San Diego News Network.