State Assembly, Senate pass compromise state budget

Both the state Assembly and Senate passed the state budget and associated legislation Friday afternoon, putting the long-delayed state budget with sight of completion.

In both chambers, the necessary votes came in just over 30 minutes with a minimum of debate. Lawmakers were voting on not only the budget itself but related reforms that had to do with how revenue would be collected under the 2008-09 budget and establishment and use of a rainy-day fund.

Two aspects of the budget, the rainy-day fund and borrowing against future lottery revenues, will be later combined into a single ballot measure that voters will decide on sometime in 2009.

Gov. Arnold Schwarzenegger said earlier Friday that he thought June was the most likely time for a special election for that measure, and possibly other statewide measures.

Legislative leaders expressed little jubilation over the budget, which includes billions of dollars in cuts that Democrats opposed and has few of the long-term reforms Republicans have wanted.

"It's not a good budget," said state Senate President Pro Tem Don Perata (D-Oakland) in a statement released after the budget vote. "No one is running around here defending this budget. The real question was: Could we have done any better without a tax? The answer was no. The Governor couldn't get anybody to support a tax in his party. The Republicans had the final say and they said no."

In the Assembly, Republican Leader Mike Villines (R-Clovis) warned of problems to come while expressing relief that a budget was finished.

"Despite the strengthened rainy-day fund we passed today, California will still face multi-billion budget deficits if we do not get spending in line with revenues," Villines said in a statement released by his office. "That's why Republicans will continue to fight hard to pass a state spending limit, which will fix our broken budget system once and for all."

The state legislature will now recess until December. Schwarzenegger is expected to sign the budget sometime next week, possibly as soon as Monday.

With the budget overdue by more than 81 days when he signs it, California's lawmakers will have established a record for delays in a state spending plan.

EARLIER on PolitickerCA.com:

• Governor says he'll sign state budget