BILL ANALYSIS                                                                                                                                                                                                    �





                                                                  AB 98

                                                                  Page  1


          GOVERNOR'S VETO
          AB 98 (Budget Committee)
          As Amended  June 14, 2011
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately
           
           
           ----------------------------------------------------------------- 
          |ASSEMBLY:  |     |(February 22,   |SENATE: |23-15|(June 15,      |
          |           |     |2011)           |        |     |2011)          |
           ----------------------------------------------------------------- 
               (vote not relevant)

           ----------------------------------------------------------------- 
          |ASSEMBLY:  |51-26|(June 15, 2011) |        |     |               |
          |           |     |                |        |     |               |
           ----------------------------------------------------------------- 
           

          GOVERNOR'S VETO MESSAGE  :

               In January, I presented a balanced budget solution 
               with a mix of deep spending cuts and temporary tax 
               extensions subject to voter approval.  My plan would 
               put these extended revenues in a lockbox, ensuring 
               that they are only used to protect education and 
               public safety.  It would also address California's 
               long term fiscal crisis by substantially paying down 
               the $35 billion wall of debt built up over the last 
               decade.  Yet Republicans in the Legislature blocked 
               the right of the people to vote on this honest, 
               balanced budget.  Meanwhile, Democrats in the 
               Legislature made valiant efforts to address 
               California's budget crisis by enacting $11 billion in 
               painful cuts and other solutions.  I commend them for 
               their tremendous efforts to balance the budget in the 
               absence of Republican cooperation.  Unfortunately, the 
               budget I have received is not a balanced solution.  It 
               continues big deficits for years to come and adds 
               billions of dollars of new debt.  It also contains 
               legally questionable maneuvers, costly borrowing and 










                                                                  AB 98

                                                                  Page  2


               unrealistic savings.  Finally, it is not financeable 
               and therefore will not allow us to meet our 
               obligations as they occur.  We can and must do better. 
                A balanced budget is critical to our economic 
               recovery.  I am, once again, calling on Republicans to 
               allow the people of California to vote on tax 
               extensions for a balanced budget and significant 
               reforms. They should also join Democrats in supporting 
               job creation and ending tax breaks for out-of-state 
               companies.  If they continue to obstruct a vote, we 
               will be forced to pursue deeper and more destructive 
               cuts to schools and public safety a tragedy for which 
               Republicans will bear full responsibility.




           Analysis Prepared by  :    Melissa Bowman / BUDGET / (916) 
          319-2099 



                                                               FN:  0001308