Monday, June 9, 2014

State Budget Deadline

The legislature faces a deadline of June 15 to pass a deadline.  If a budget is not passed by then, legislators are not paid for each day without a budget that passes.  In the past, there was some contention about what passing a budget meant.  The state controller - who is now running for Treasurer - ruled that a true budget that met all the formulas and technical requirements had not been passed and withheld pay.  The governor vetoed that budget but the constitution doesn't require that a budget go into effect.  It only requires that the legislature pass one. 

Subsequent litigation produced court rulings that the controller - who writes most state paychecks (other than UC's) - was not entitled to rule on what a budget was.  It is up to the legislature to determine what constitutes a budget.  Whether the matter is 100% determined is a bit uncertain.

Nonetheless, it is likely that the legislature will pass something by June 15.  News articles are appearing about disputes between the governor - who likes to be the voice of fiscal prudence - as to what the level of spending will be and what assumptions are appropriate on which to base a budget.  Could UC be in line for more money than the governor has proposed in some compromise between the governor and legislative leaders?  All we can say is that the news articles say nothing about higher ed.  They focus on the governor's proposed high-speed rail project, social programs, and "lower" ed (particularly preschool).  If higher ed is on the table, the news media either haven't found out or just aren't reporting on it.

Some news articles:

No comments: