Archive for July, 2009

Governor Schwarzenegger and state legislators failed to reach a compromise last night, as Califronia began the 2009-10 fiscal year without a budget deal.

According to John Myers at Capitol Notes, theĀ  $3.3 billion in missed education savings from last night’s vote is now being estimated as adding another $8 billion to the state budget woes, due to Prop 98 requirements.

The Sacramento Bee reports that the new deficit number will be roughly $26.3 billion, about $2 billion higher than the governor’s May budget. State Controller John Chiang will start issuing IOUs in the form of registered warrants to state vendors; these warrants will not be redeemable until October 1st, and only if the State has enough cash to cover the amount of the warrants. Medi-Cal providers are listed as receiving regular warrants which can be redeemed immediately. For more information on the IOUs, check out the Controller’s FAQ Page here.

The Governor declared a new state of fiscal emergency earlier today andĀ  launched another special session. Online now is a new July Revision that includes new budget solutions, in addition to those included in the May Revision.

The May Revision originally included more than $80 million in cuts to HIV programs. The status of the Budget Committee’s compromise package– which includes a significantly reduced set of reductions to HIV programs– remains unclear.

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