August 4, 1997 CAPITOL ACTION WEEKLY Volume 1, Number 4


A free weekly newsletter brought to you by Capitol Enquiry, Inc.
Edited by Gabe Anderson
Capitol Reports by Capitol Action Staff

Table of Contents
* Welcome
* Capitol Report
* News & Promotions


Welcome

Welcome to the fourth issue of Capitol Action Weekly, Capitol Enquiry's free weekly newsletter. If this is your first time receiving this newsletter, please note that you may find past issues through our Web site, http://www.capenq.com/newsletter. If you believe this newsletter may be of interest to someone you know, please do not hesitate to forward it along.


Capitol Report

SACRAMENTO, Calif. -- For years, California's 58 counties have received short shrift in the Capitol's annual budget fight: Their funding has been up for grabs, their political influence has been whittled away and they have been the providers of an array of costly state-ordered services without being compensated in return.

That's been the case since 1978, when the property tax-cutting Proposition 13 was approved, the counties' stable funding source was thrown into disarray and the local governments became dependent creatures of the state.

But things may be changing.

Over the weekend, Democrats put together the first major county funding overhaul in years, which would shift much of the burden of the state's trial court system onto the state. Under current practice, the counties and cities pick up roughly two thirds of the cost of operating California's lower court system. Under the new $450 million proposal, the state would assume the responsibility for about two-thirds of the cost; locals would pick up the rest. Moreover, the state would pay for the cost of new growth in the court.

In effect, the proposal would allow local governments to use money that had been directed to the courts for other things, and there would be a greater local say-so over how the money is spent.

The plan would take the place of two other proposals pending in the Capitol -- the governor's original notion of providing $100 million annually, and a legislative version that expanded that amount to $280 million.

Senate President Pro Tem Bill Lockyer, D-Hayward, California's most powerful state Democrat, disclosed the bare outlines of the plan to reporters in his office. He cautioned that the plan needed the approval of Republican governor Pete Wilson, but he noted one critical fact: The proposal carries the endorsement of State Supreme Court Chief Justice Ronald George, the Judicial Council, the judges' lobby and other members of the judicial community.

The backing of the judiciary, which rarely intervenes in California's budget wars, gives the proposal a significiant boost. In addition, the GOP budget negotiators in both houses, while they have not formally announced support for the proposal, are said to be generally receptive to the idea.

If ultimately approved, the bulk of the new scheme would not take effect until July 1998. Lockyer said there was not enough money in state coffers to begin the program right away because of the need to immediately cover a court-ordered $1.36 billion payback of public pension funds that were raided to balance an earlier budget.

That payment has left little in the budget -- despite the surge in tax revenues stemming from a booming economy -- to cover anything else but education. The wrangle over this year's budget has delayed the spending plan more than a month, causing the second-longest impasse ever after 1992, when California was forced to issue IOUs for the first time since 1936.

But lawmakers like Lockyer are looking ahead to next year's budget, hoping that the economic upswing will continue and that new pockets of revenue will be available.


News & Promotions

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