State budget: Brief optimism, followed by more frustration

Governor, lawmakers hold productive meetings early in the week, but stall over education funding.

By BRIAN JOSEPH / The Orange County Register

SACRAMENTO For a while there, it looked like we almost had a deal.

Gov. Arnold Schwarzenegger and the four legislative leaders were holding marathon meetings on the budget late into the night. Everyone was talking positive, saying a deal was "very close." It looked like there might finally be an end to this latest budget crisis.

Then it all went slammed to a stop.

Assembly Speaker Karen Bass, D-Los Angeles, and Senate Leader Darrell Steinberg, D-Sacramento, emerged late Wednesday evening from a meeting with the governor and said negotiations had stalled over education funding. Optimism was replaced by frustration. Again.

Progress then slowed to a halt. A full day passed before another meeting of the so-called Big Five. Once again, a solution to the state's $26.3 billion deficit appeared out of reach for the week.

What lawmakers accomplished

Well, at least everyone is talking again. A week after Bass boycotted meetings and the governor was mocking lawmakers, all sides made amends and started negotiating in earnest. On Tuesday and Wednesday, the governor and leaders held sessions late into the evening that were generally described as "productive." Negotiations have stalled over proposed repayments to schools, there's still talk that a deal is "close." But the word is that even after they find a way to resolve education spending, the governor and lawmakers will still need to come to an agreement on corrections spending, the size of a reserve and possibly even the amount of social service cuts.

What it means to you

If you're a state vendor or a local government official, you're likely getting paid by a state IOU, instead of good old cash. Otherwise, it's quite likely you still haven't felt the effects of the budget impasse. To save money, state government is almost entirely shutting down three Fridays a month, but the only state department you're likely to interact with is the Department of Motor Vehicles.

Kindest moment

We in the Capitol press corps are forced to wait outside the governor's office while the big guy and the four leaders negotiate the budget. We're not allowed to watch and we don't know when they're going to emerge to tell us how things are going. The meetings can last hours. So staking out the meetings is very boring and frustrating - especially when there are other things you'd rather be doing. That was especially true on Tuesday, when Major League Baseball was holding its All-Star Game. Many of us, including this reporter, were complaining that we were going to miss the game. That's when the governor's press secretary, Aaron McLear, came to rescue and procured us a television so we could watch the game. In the hallway. It beat playing on my cell phone.

Quote of the week

"After a long day of negotiations, I have to say we have stalled."

Assembly Speaker Karen Bass, D-Los Angeles, after Wednesday's late night meeting.

Contact the writer: 916-449-6046 or

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