California Budget Crisis Diaries: To veto or not to veto?

This story was reported for San Diego News Network on October 13, 2009.

See original copy of story.

It’s been an overwhelming past couple of days for state lawmakers. Gov. Arnold Schwarzenegger had more than 700 bills to flip through while additional information about California passed through. Here’s a heftier budget diary entry.

Bills, bills, bills: Schwarzenegger signed and vetoed bills Sunday, the last day available to him to make an executive decision on bills as mandated by state law. In total, Schwarzenegger signed 478 bills and vetoed 229.

Among the major bills signed include:

– SB54 by Sen. Mark Leno (D-San Francisco), which recognizes gay marriages authorized in other states.
– SB 572 by Sen. Mark Leno (D-San Francisco), which recognizes May 22 as Harvey Milk Day. Milk, the gay rights activist and politician, was born on that day.

Local state representatives also saw the fate of their bills. SB 412 by Sen. Christine Kehoe (D-San Diego) was signed into law. The bill requires the California Energy Commission to make further assessments before using liquefied natural gas, ultimately forcing the state to find alternatives. Sen. Denise Ducheny (D-San Diego) also saw the passage of her bill, SB3 18, which would reduce the supervision of prison inmates who are considered “low-level offenders.”

AB 66 by Assemblymember Joel Anderson (R-El Cajon) lightens the requirements for students, making it easier for them to obtain work permits. AB 343 by Assemblymember Lori Saldaña (D-San Diego) will allow military students to hold on to their school credits from other schools; the bill is a two-year effort by Saldaña.

A major bill that was vetoed, however, was AB 24 by Assemblymember Marty Block (D-San Diego). The bill asks for a feasibility study for a possible additional campus to the California State University system in Chula Vista.

“The governor was generous in his appreciation of the proposed legislation, but misguided in his veto,” said Block in a statement. “His feeling that the CSU Trustees could conduct a similar study internally and therefore not need AB 24 misses the precise purpose of this legislation. While the CSU could conduct an internal study, that study would encompass the entirety of California and would require state funds.”

A complete list of bills signed and vetoed can be seen on the governor’s Web site.

Revenue down: State Controller John Chiang released his September Cash Report Friday, which shows the general fund revenue dropped down to $1.1 billion “below the recently amended 2009-10 Budget Act estimates.”

“Revenues more than $1 billion under estimates and recent adverse court rulings are dealing a major blow to a budget that is barely 10-weeks old,” Chiang said. “While there are encouraging signs that California’s economy is preparing for a comeback, the recession continues to drag State revenues down. I urge lawmakers and the Governor to prepare for more difficult decisions ahead.”

California’s three largest sources of revenue fell below estimates for the month of September: personal income tax revenues for the month were $934 million below estimates, corporate taxes were down $183 million, a 10.5 percent drop, and sales taxes came in $99.8 million lower than expected.

The state’s cash deficit was $11.9 billion beginning this fiscal year. Two months in, the deficit grew to $16.2 billion. According to the controller’s office, the deficit is being covered with a combination of $7.3 billion of internal borrowing from special funds and $8.8 billion in short-term revenue anticipation notes.

Shriver violates the law: Schwarzenegger is calling out his wife, Maria Shriver, for apparently violating a state law he signed – holding her cell phone while driving.

The celebrity Web site TMZ.com posted two photographs Tuesday showing Shriver holding a phone to her ear while she’s behind the wheel. It says one was snapped Sunday and the other in July.

On his Twitter feed Tuesday, Schwarzenegger wrote to TMZ.com founder Harvey Levin: “Thanks for bringing her violations to my attention. There’s going to be swift action.”

Schwarzenegger spokesman Aaron McLear says that by “swift action,” the governor means he’ll ask his wife not to hold the phone while driving. A law that took effect in 2008 requires California drivers to use a handsfree device.

The first lady’s office said it would have no comment.

The Associated Press contributed to this report. Hoa Quach is the political editor for the San Diego News Network.