$1 Billion Short, Senate Rejects Its Budget Proposal

SACRAMENTO — The Senate on Tuesday defeated its version of California’s next budget, which garnered considerable Republican opposition and was $1 billion out of balance.

The spending plan went down on a vote of 25 to 14, falling two votes short of the two-thirds majority needed for approval. It failed to garner a single Republican vote and will be taken up again at a later date, possibly as early as Thursday.

The Senate spending plan differs in dozens of ways from the one proposed earlier this month by Gov. Gray Davis, including restoring about $700 million for health services and increasing social services spending by about $280 million. But it does not include money to expand a health insurance program to cover poor parents--a key priority for many Democrats.

“There is much within this document for both Republicans and Democrats to dislike,” said Sen. Steve Peace (D-El Cajon), who heads the Senate Budget Committee.

When the Senate and Assembly approve their respective budget proposals, they will convene a budget conference committee to draft a compromise spending plan. That proposal must be approved by the Legislature and sent to Davis to sign by the start of the new fiscal year July 1--a frequently missed deadline.

The measure containing the Senate’s budget proposal cleared the Senate Budget Committee on Tuesday by a vote of 9 to 4, with Republicans voting against the plan.

Next it moved to the full Senate, where Republicans objected to Davis’ proposed increase of the fee motorists pay to register their cars to raise nearly $1.3 billion.

GOP legislators also called for a limit to be placed on government spending, sought to save $1 billion by making state welfare eligibility standards conform with federal guidelines, to stop funding state agencies for vacant positions, and to rescind the state’s much-criticized $95-million Oracle computer software contract.

“That’s a modest start,” Sen. Tom McClintock (R-Thousand Oaks) said. “Until you agree to that, stop blaming the taxpayers for your own excesses.”

The Senate plan directs the conference committee, which will consist of Democrats and Republicans from the Assembly and the Senate, to close an additional hole of $1 billion, which state Legislative Analyst Elizabeth Hill contends is necessary for the document to be balanced.

Legislators could propose additional cuts, tax increases or borrowing to cover the $1 billion.

The Assembly is expected to vote Thursday on its version of the 2002-03 state budget, which differs from plans floated by the Senate and Davis in a variety of ways.

Neither the Senate nor Davis included money in their budget proposals to expand a health insurance program for low-income children to include their parents, for example. Assembly legislators earmarked nearly $80 million so the expansion could begin July 1.

The Assembly proposal also restores a $121-million cut to a juvenile crime prevention program.