Perata: Slight progress in budget talks

California State Senate Pro Tem Don Perata ‘s office reported slight progress Thursday afternoon on crafting a new state budget, but also signaled that the state will go at least through the Fourth of July weekend without a new spending plan.

In a press release, Perata's office said the budget committee voted to restore most of the mid-year cuts in Medi-Cal reimbursements on September 1.

That reimbursement rate was cut by 10 percent earlier this year, prompting a lawsuit and some doctors to stop accepting Medi-Cal patients.

But the release indicated that the committee deadlocked over a proposal by Gov. Arnold Schwarzenegger to loan the state's general fund $1 million from a fund used to educate nurses.

An analysis from the state Legislative Analyst's Office noted that California has an ongoing shortage of certified nurses.

The budget committee is set to meet again Sunday at 6 p.m. The committee, which is made of the top four legislative leaders, including Perata (D-Oakland), must settle differences between versions of spending plans passed by the state Senate and Assembly.

Both of those chambers must approve the final budget by a two-thirds vote before it's sent to the governor for his signature. The new fiscal year began Tuesday, making it likely the state will be a full week into 2008-09 before a budget is approved.

Leaders on both sides agree the most difficult aspect of budget negotiations is filling a $15 million deficit for 2008-09. Republicans favor spending cuts, while Democrats want to generate more revenues for the state.

Observers believe some combination of the two will be necessary for a workable budget.