CFA GOVERNMENTAL
RELATIONS OFFICE WEEKLY REPORT
"STATE BUDGET IMPASSE CONTINUES, ADDITIONAL CUTS PROPOSED"
2002 EDITION - Issue No. 23
August 9, 2002
CONTENTS:
STATE BUDGET IMPASSE CONTINUES, ADDITIONAL CUTS PROPOSED
Entering the sixth
week of the new fiscal year without a budget, Assembly
Democrats attempted to garner Republican votes by compromising on a Vehicle
License Fee budget proposal that would have increased the VLF by 40 percent.
In exchange, the Democrats offered a $3/pack increase in the cigarette tax.
Although the Assembly Republicans claimed a reduction of the VLF increase
was their "top priority", no Republicans voted for the amended budget
with
the new cigarette tax. Additionally, Assembly Republicans are demanding even
deeper cuts than the $7 billion that have already occurred.
Unfortunately,
there is no sign of a budget agreement being reached soon,
and some legislative insiders are anticipating a budget won't be approved
until after the Legislature adjourns at the end of August, and maybe not
until after the November election.
CFA has been meeting
with the Davis administration and legislative leaders
in its efforts to protect the CSU budget from further reductions, and secure
CFA-sponsored budget language proposals that would safeguard faculty
compensation dollars, and place a freeze on the CMS/PeopleSoft computer data
project until a CFA/CSEA-CSU jointly sponsored state audit is completed
early next year.
In the meantime,
state agencies ? including the CSU ? have been notified to
prepare for a minimum 20 percent on-going budget cut that is "intended
to be
permanent" beginning in the next fiscal year, beginning July 1, 2003. In
its letter to state agencies, the Department of Finance states: "Agencies
should review all programs for reduction opportunities. These reduction
plans must incorporate and consider one or more of the following: 1) repeal
of statutorily required activities or programs; 2) elimination of
discretionary programs; 3) consolidation of programs; 4) Agency
reorganization of departments, boards, commissions, and offices (proposed
reorganizations that cross Agency jurisdictions must be submitted jointly by
the affected Agencies); 5) restructuring program responsibilities between
the State and local governmental entities, and 6) reduction in cost and/or
service level. Agencies must submit 20-percent spending reduction plans
even if they also provide revenue proposals."
Initial reactions
by various state agency heads have identified cuts to
programs affecting children's inoculations, educational services for
hearing-impaired children, drug treatment facilities, teen pregnancy
education and counseling, and closing prison facilities. CFA is working to
ensure that instructional and student service programs are protected and
given the highest funding priority in any CSU-recommended reductions.
UPDATE ON AB 2549 - Lecturers Retirement Bill
Based on suggestions
from the Governor's Office and Senator Dede Alpert
(D-San Diego), CFA is amending AB 2549 (Nation), which is awaiting a vote in
the Senate Appropriations Committee. In its amended form the bill, which
would allow lecturers who teach a minimum of 6 units for two consecutive
semesters or three consecutive quarters to negotiate for membership in the
CalPERS retirement program, stipulates that while the benefit could be
bargained beginning in January 2003, the benefit could not be provided until
July 1, 2004. This amendment increases the possibility that the Governor
will sign the bill.
CFA has been actively
lobbying the Governor's Office on this bill in
anticipation of it passing out of the Senate soon. In addition, CFA faculty
"lobbyists" have met with Senator Alpert, Chair of the Appropriations
Committee, in her San Diego office. Thanks to Rolf Schulze and Leilani
Grajeda-Higley from CSU, San Diego. In the course of their meeting, and
subsequently, Senator Alpert indicated her support for the bill. CFA is
also in the process of initiating a grassroots effort to get the Governor to
sign AB 2549. Stay alert for more information.