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2002 - 2003 TimelineSelect a month to view the timeline for this issue:
| Budget & Economy | ||
| July 29th | Assembly approved $100 billion budget plan after a marathon session. | More Info |
| July 24th | The Senate finally agreed on a budget plan with no new taxes. | More Info |
| July 21st | Democrats unknowingly broadcast a secret discussion about the budget. | More Info |
| A forecast showed California will experience more economic struggles this year. According to the report, the Bay Area will continue to experience job losses this year. | More Info | |
| July 17th | Gov. Davis held press conferences with a coalition of elected officials and educators to urge lawmakers to pass the budget. | More Info |
| Schools chief asked Supreme Court to help with budget stalemate. | More Info | |
| July 15th | GOP budget plan was swiftly shot down. | More Info |
| July 9th | The Governor met behind closed doors with Senate and Assembly leaders to discuss the budget. No deal was made. | More Info |
| July 8th | Governor Davis approved $727 million dollars to continue Medi-Cal Services during the budget stalemate. | More Info |
| July 6th | Assembly Democrats rejected a Republican spending plan proposing to eliminate the budget hole without raising taxes. | More Info |
| July 1st | Lawmakers missed another deadline, remained deadlocked over budget. | More Info |
| Republicans filed a lawsuit challenging the tripling of the car tax. | More Info | |
| Davis administration discussed tax swap to solve budget deadlock. | More Info | |
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Overview
After a record-long session, the Assembly approved a compromise budget plan with a 56-22 vote. The $100 billion budget includes cutting programs, borrowing billions of dollars, and increasing fees. The budget was sent to Davis. The following are some budget highlights:
- $10.7 billion in bonds to be paid off over the next five years
- $7.9 billion shortfall for 2004-2005
- Tripling of the car tax, effective October 1st
- No new taxes beyond the vehicle license fee hike
- Significant cuts to UC and CSU
- Spared education from the deepest cuts
- Protected children's health coverage
- Significant cuts to environmental programs
- State employee layoffs
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Overview
On July 24th, Senate leaders agreed on a budget plan with no new taxes. They voted 27 - 10 to approve the spending plan the following Sunday. The plan includes cutting programs, borrowing billions of dollars, and increasing fees.
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Overview
A group of Assembly Democrats did not realize that a microphone was on while they discussed extending the budget crisis for political gain. The discussion was broadcast throughout the Capitol.
A forecast showed California will experience more economic struggles this year. According to the report, the Bay Area will continue to experience job losses this year.
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Resources & Links
Los Angeles Times:
Forecast Sees More Economic Struggle
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Resources & Links
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Overview
In a long-shot attempt to break the budget stalemate, State Superintendent of Public Instruction Jack O'Connell said he would ask the Supreme Court to suspend the two-thirds vote needed to pass the budget. "This impasse is already beginning to have serious consequences for our schools, and state as a whole. Everyday that goes by without a budget, the problem is compounded," O'Connell said.
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Overview
Senate Republicans presented another budget proposal with over 100 amendments and about $3.7 billion more in cuts than the Governor's proposal, without increasing taxes. The plan was quickly defeated with a 26-13 vote. Some of the proposed cuts included eliminating the Coastal Protection Agency and further reducing education and health care funding.
Funds for many state programs and state employee paychecks may run out, if legislators do not agree on a budget soon.
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Resources & Links
San Francisco Chronicle:
Budget closer, leaders say
Governor, legislative chiefs meet behind closed doors to negotiate
Contra Costa Times:
Progress on budget eludes the 'Big Five'
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Resources & Links
Press Release
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Overview
July 1st was the first day of the new fiscal year and the next deadline for state lawmakers to pass the 2003-2004 Budget. Republicans and Democrats remained deadlocked over the budget and began the fiscal year without a spending plan.
If the budget stalemate continues, many state programs and projects might be forced to suspend some and in some cases all of their funding. Payments to community colleges might be cut off; school programs might shut down; and some state-funded medical clinics might close their doors. Stay tuned for updates.
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Resources & Links
Los Angeles Times:
GOP Files Challenge to Tripling of Car Tax
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Overview
According to the San Francisco Chronicle, GOP and Democratic Senate leaders as well as the Davis administration discussed shuffling the state sales tax to address the budget deficit without raising taxes.
