This story was reported for San Diego News Network on May 19, 2009.
The anticipated special election is, at last, history. But California remains $6 billion short of “fixing” the $21 billion deficit and state legislators won’t be eligible for raises until the problem is fixed.
“Tonight we have heard from the voters and I respect the will of the people who are frustrated with the dysfunction in our budget system,” said Gov. Arnold Schwarzenegger Tuesday night. “Now we must move forward from this point to begin to address our fiscal crisis with constructive solutions.”
Propositions 1A through 1E all failed by significant margins; in turn, Proposition 1F passed by a significant one (see chart). The propositions, as proposed by the state legislature, were meant for voters to decide whether nearly $16 billion in taxes could be gained to deter the state of about $6 billion from its deficit.
The most contentious, Proposition 1A, would have created a spending cap and rainy day fund, which Schwarzenegger said was needed to smooth out California’s budget cycles in coming years. But the measure also would have extended income, sales and vehicle tax increases enacted earlier this year by one or two years, an extension opposed by conservative groups.
Proposition 1B would have restored more than $9 billion to schools. Two other measures would have shifted hundreds of millions from children’s and mental health programs to the state’s general fund.
Meanwhile, the passing Proposition 1F freezes legislative pay raises during years in which the state is in a deficit.
Anticipating that five of the propositions would fail, Schwarzenegger and the state’s department of finance director Mike Genest released what is now known as “Plan B” last week. Plan B would release 40,000 state inmates, take cuts to public education and ask legislators to suspend Proposition 1A of 2004 that would require local governments to offer 8 percent of their property tax revenues.
The latter proposal would require a two-thirds majority vote from the state legislature and has already caused concern among local elected officials. Including that of Chula Vista Mayor Cheryl Cox, whose council adopted a resolution last week to reject the mandate.
In an interview, state Sen. Christine Kehoe (D-San Diego) said she was aware of the unpopularity among local officials with mandating 8 percent of property tax revenue — but said cuts would be necessary at all levels of the government to save California.
Assemblymember Lori Saldaña (D-San Diego) also said the legislature would work as expeditiously, as possible on Wednesday to find a solution for the deficit that now, won’t be saved by five of the propositions.
“We’ve been working here [Sacramento] for weeks on different scenarios,” Saldaña said. “Whatever happens on Tuesday, Wednesday’s actions will be taken quickly by legislators.”
Associated Press writer Judy Lin contributed to this report.