Advertisement

Gov. crafts budget gambit

A special session of current lawmakers could result in tax hike.

NEWS ANALYSIS

October 22, 2008|Evan Halper, Halper is a Times staff writer.

SACRAMENTO — Gov. Arnold Schwarzenegger's decision Tuesday to call state lawmakers back for a special session next month comes with several strategic advantages.

The governor is planning to summon sitting lawmakers -- not the new class that will be elected in two weeks -- for the emergency session. They already are well-versed in the intricacies of the current state spending plan. They will no longer be waging reelection campaigns. And some will be leaving the Legislature when their terms expire Nov. 30.


Advertisement

Analysts say that if Schwarzenegger again proposes a tax increase to deal with the state's fiscal problems, the current crop of lawmakers is still his best hope of getting it passed -- even though Republican members beat back his efforts to temporarily raise the sales tax during the summer. Administration officials say they are drafting a plan to submit to lawmakers.

"There are some . . . lame-duck Republicans who could probably be persuaded to be made more agreeable to his fiscal approach," said Republican political analyst Tony Quinn. "Some are leaving office and have no plan of running again. I am sure he hopes he can put together an arrangement with them."

Quinn also said the resolve of Republican lawmakers to block taxes could soften if Democrats make big gains statewide Nov. 4. "It would be harder for them to say the 'no new taxes' mantra has been validated by voters," he said.

Schwarzenegger is calling on the Legislature to fix the budget passed only weeks ago, which is already at least $3 billion in the red. Analysts expect that deficit to grow as revenue continues to plunge amid economic uncertainty.

"We just don't believe we can wait to attack this deficit," said Schwarzenegger spokesman Aaron McLear.

Administration officials said Tuesday that the governor had not yet decided whether to propose a tax hike. Republican legislative leaders maintained that their caucuses would continue to block any proposals for new taxes.

"California's economy cannot handle a tax increase," said Senate Republican Leader Dave Cogdill.

Regardless, steep cuts in services are almost certain to be part of any plan the governor proposes. Fiscal analysts say it would be extremely difficult to balance the budget without cuts.

At a news conference in Carson on Tuesday, Schwarzenegger said the session would allow lawmakers to "fix some of the problems that need to be fixed."

Los Angeles Times Articles
|