As referenced earlier in the week – we are into a new budget creation process again 30 days after the conclusion of the last round. However, this go around promises to be a bit different – as indicated by the Press Enterprise (amongst many others).
Given the passage of Prop 25 the democrats would appear to be in charge and can pass the budget with a simple majority (50% + 1) rather than the previous supermajority (2/3). From that view, they probably think things are improved as they don’t have to get any consensus or votes from Republicans. However, the 2/3 requirement for ANY tax increase more or less cuts off the revenue sources that they were counting on. The election also eliminated many of the mechanisms the Legislature has used to raid local funds for state purposes (e.g., Redevelopment funds).
So, from my view, the Democrats now have the power and responsibility to deliver the state budget for both this and next year. However, there is loss of power to access revenue sources which only leaves reduction of programs as a solution for their (our) budget problems – both this year and next. Obviously, that puts schools and districts at the center of attention – yet this is philosophically in contrast to the principles of the Democratic Party (who have typically supported schools and sought revenue enhancements rather than budget reductions).
A simple majority vs. a supermajority requirement for passage of the budget is likely to have a number of “unintended consequences.” I suspect that other propositions are likely to have similar impacts that may fundamentally modify our budgetary system in California.
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