July 2, 2009
from J. Kevin Pedrotti, Legislative Advocate for the Golden State Builders Exchanges
IOU’s are being issued to state vendors and local governments as of today and over 200,000 state workers are being furloughed an additional day (total of three) per month because the legislature and Governor could not reach a budget solution on the mounting $26 billion deficit.
The primary sticking point is the Governor’s insistence that the deficit be solved without new taxes and not be done on a piece-meal basis. Democrats on the other hand prefer a combination of cuts and new taxes so as not to reduce many social welfare programs. As the July 1 date passed for a resolution of the deficit, it appears the Governor’s position has hardened. In a press conference yesterday, the Governor appeared to mock legislation being considered by the legislature. In his press conference the Governor sited three times a bill dealing with “tail docking” of livestock. The Governor referred to it as “cutting cow tails” and even filmed the hearing and put it up on youtube. http://gov.ca.gov/ (see right hand corner of website to view video).
The senate has suspended policy committees until the budget is resolved. At some point, the assembly will as well since assembly bills aren’t being considered by the senate.
There will be end - someday - nobody is predicting when. In the meantime, the legislature has recessed on the call of the house through the weekend.
Retention Legislation
Two bills were considered on retention this week.
SB 802 (Leno) caps retention at 5% for public works projects. The bill was heard this week and the vote was put over until the next hearing for purposes of discussions with the school districts who oppose the bill. A 3 to 5 year sunset date is being considered to remove opposition from the schools. http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0801-0850/sb_802_cfa_20090629_103103_asm_comm.html
SB 629 (Liu) caps retention at 5% on private works. The bill was passed by the Assembly Judiciary Committee. The bill has major opposition from AGC and other builders’ associations.
http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0601-0650/sb_629_cfa_20090629_112828_asm_comm.html
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