Chaos reigns in state budget impasse

This is getting to resemble one of those movies where there's no one to root for. From Capitol Alert:

--Senate Republicans now say they're willing to place a tax proposal on the fall ballot, provided that voters are also asked to consider provisions for pension cuts and a spending cap. But they refuse to go along with a tax extension from now until then because they say that the state's larger-than-expected revenue gains makes the tax bridge unnecessary.

--Gov. Jerry Brown's Press Secretary said the Republicans were "grandstanding without solving problems...We could have had regulatory reform, a spending cap and pension reform--without a bridge--in March."

--Brown says he continues to negotiate with Republicans on a budget plan that would include tax extensions (and require Republican help to pass). Thing is, he's been saying the same thing for months - and apparently with little success.

--Senate President Pro Tem Darrell Steinberg says that Brown's budget plan is all but dead. Democrats are working on a new plan that won't require Republican votes.

--Senate Republican Leader Bob Dutton wants the pension measure to be separate from the tax proposal. The Democrats want to have all three special election measures tied together.

--More talk about Controller John Chiang being sued for his decision to stop paying lawmakers, despite the legislature passing a budget.

The Economist sums things up:

Mr Brown's Republican predecessor, Arnold Schwarzenegger, used to call the ritualised drama that is California's budget process a "kabuki". But Japanese kabuki plots only start ridiculous and complicated, before speeding up and resolving themselves with a cathartic bang in the fifth act. California will be lucky if it follows such a script. Indeed, Mr Brown's second spell of governorship now runs the risk of failing in its first year.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
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