Budget: Close, but no cigar

0 Comments | Oakland Tribune, Aug 21, 2007 | by Mike Zapler

SACRAMENTO -- State lawmakers returned Monday from a monthlong summer break with high expectations they would pass a budget that's approaching two months overdue.

They inched tantalizingly close to a deal throughout the day, but Senate Republicans balked late Monday night, and the standoff continued another day.

Monday afternoon, Republican Gov. Arnold Schwarzenegger corralled legislative leaders to his office. Democrats emerged from the meeting confident an agreement was at hand; Republicans were more cautious, but still signaled a deal was close.

But those hopes were dashed Monday evening after a closed-door meeting of Senate Republicans. They emerged dissatisfied with the proposed settlement, saying it failed to meet their demands for deeper spending cuts, among other issues.

While legislative leaders negotiated

inside the Capitol on Monday night, a group of about eight Republican senators gathered a block away at Chops restaurant, some smoking cigars and having drinks. California's requirement that the budget pass with a two-thirds majority gives Republicans relevance they lack the rest of the year. Two Senate Republicans need to agree to a budget; as of Monday, only one, Abel Maldonado of San Luis Obispo, had gone along.

The deadlock has meant millions in missed payments to nursing homes, schools and contractors. The longest budget stalemate was in 2002, when lawmakers passed a budget Aug. 31 and it was signed into law Sept. 5.