Sam Spade's San Francisco

State Budget Update from Tom Ammiano at the State Capitol:

Dear Friends:

With the July 1st deadline for a state budget revision fast approaching, I want to give you an update on where things stand in our on-going attempts to solve California’s $24 billion budget deficit.Last Thursday, the Assembly Democratic caucus put forth a proposal that included $12 billion in service cuts and $2 billion in new revenue from increased taxes on oil and tobacco products, along with several measures to accelerate revenue collection. This balanced budget package, which required a 2/3 supermajority vote for approval, failed to gain any Republican support. Yesterday, Assembly Democrats passed a similar package with a majority vote, which if signed by the Governor, would go into effect in 90 days. However, the Governor has vowed to veto that package of bills as well.

Facing the harsh reality of the State Controller having to issue IOUs without a budget deal, the Assembly passed a stop-gap set of bills that would make some cuts and defer some payments to schools, in order to keep enough cash in the state treasury, to pay the state's bills. Unfortunately, Republicans in the Senate blocked even that modest proposal.

We have offered a fair, balanced budget proposal but I feel strongly that we cannot allow the budget deficit to be used as an excuse to eliminate our safety net programs and weaken our public education system. The state’s budget simply cannot be balanced on the backs of our state’s most vulnerable populations.

Specifically, I am proud of our effort to fight against the Governor’s attempts to eliminate HIV/AIDS funding and the cuts will now be limited to $10 million. Unfortunately, deep budget reductions will be made to the Office of AIDS but we did manage to save ADAP, therapeutic monitoring, counseling, education and prevention, and early intervention programs. I intend to continue fighting for this funding because I know these programs literally save lives.

Without a budget solution by the beginning of the fiscal year on July 1st, the Controller will have to issue IOUs for payment further weakening California’s credit rating and hindering the state’s overall economic recovery.

I am committed to providing responsible leadership in this difficult time and I will keep you informed about any progress that is made with the state budget.

Tom Ammiano, Assemblymember, 13th District of California (San Francisco)
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