Coming Around Again: Budget Constitutional Amendment

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(Sacramento, CA)
Monday, January 14, 2008

Governor Schwarzenegger has pushed for changes to the budget process twice before.  The overall goals have not changed.  They are to limit spending and to allow for mid-year cuts.  One attempt was Proposition 76 in 2005. 

Mark Baldassare with the Public Policy Institute of California says the idea of a spending limit played well with voters.  But he says a split between Democrats and Republicans killed it.  To succeed this time around he says the plan needs a variety of backers. 

“Chances are that voters would really view this measure through a partisan lens. It needs bi-partisan support, business and labor support.”

The Governor’s new proposal requires the state to save money when revenues are strong.  It would also trigger automatic spending reductions when there’s a budget deficit.