SACRAMENTO — The Democratic leader of the state Senate said Wednesday he is dropping his campaign to recall Republican state Sen. Jeff Denham, after GOP leaders warned that the effort was a stumbling block to bipartisan negotiations on the state budget.
Senate President Pro Tem Don Perata (D-Oakland) held a news conference on the Capitol steps to say he would no longer promote the recall, although it will remain on the June 3 ballot and groups tied to Perata have spent more than $500,000 urging voters to toss Denham out of office.
Perata said he conveyed his decision to Senate Minority Leader Dave Cogdill (R-Modesto), who had told him the recall effort was an obstacle.
"It would seem to me to be destructive to continue the recall while at the same time he and I were going to sit down with our counterparts in the Assembly and in seven weeks try to put together a budget that may well have to eliminate a $14-billion deficit," Perata said.
The Democratic leader said his decision was influenced by predictions this week from the state treasurer and controller that the state will have cash flow problems if the Legislature does not come up with a fix for the budget shortfall.
"We are in one of the largest economies in the world and we are teetering on bankruptcy. And if we can't get our act together we're going to look like a bunch of clowns," Perata said, noting this is his last year as senator. "I don't want to go out in Chapter 7" bankruptcy.
Cogdill applauded Perata's decision.
"This eliminates an unnecessary distraction in an already contentious budget year," Cogdill said. "This will allow us to focus on doing what voters expect from us: achieving a balanced, responsible budget."
Tom Dressler, a spokesman for Treasurer Bill Lockyer, said the state needs a budget close to the July 1 start of the new fiscal year because it does not have a lot of cash reserves to keep paying bills after that.
Denham said he was relieved by Perata's announcement and is willing to work with Perata on budget reform. But he remained generally opposed to increasing taxes and said he would continue to campaign against the recall to ensure its defeat.
"It certainly comes as good news," Denham said. "But he still has signs up in my district, ads on the air and money in the bank, so I will continue the campaign."
Perata said the television ads accusing Denham of lavish traveling and neglecting the state would immediately be stopped.
