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Legislature Back in Town; Budget Crisis Never Left

(January 5, 2009)
Today marks what has traditionally been the first day of the new legislative session, the day when lawmakers return to Sacramento for the first time since the adjournment of the previous session in late summer. This year, of course, the previous session has essentially never ended, since negotiations continue on a revision of the state budget for 2008-09 (the fiscal year that is now half-completed). While legislative leaders and administration officials continue to haggle over details of the Democratic-crafted plan passed by the legislature on December 18, which would have made mid-year revisions to the 2008-09 budget already adopted, the Governor's office on December 31 released a preview of his proposed 2009-10 budget, about 10 days earlier than usual. From public transit's perspective, the latest proposal from the Governor essentially mirrors the one he floated in November, calling for elimination of third- and fourth-quarter "current year" allocations to the State Transit Assistance (STA) Program (totaling about $150 million) and complete abolition of the STA starting July 1, 2009 (resulting in ongoing "savings" of about $306 million).