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The State Budget Process and You

The State Budget Process and You

by Craig Brown

By January 10 of each year, the governor submits his proposal for state spending in the following fiscal year. This year's submission was for the fiscal year running July 1, 2006, through June 30, 2007. This gives the state Legislature a little over five months to hold hearings and come up with their version of the state's spending plan.

In mid-February, the Offi ce of the Legislative Analyst submits its non-partisan review of the governor's proposal to the Legislature. This document highlights important facts and issues and points out concerns about some of the governor's proposals. Their analysis often provides alternative ideas for operating state government.

For the next several weeks, legislative budget subcommittees hold hearings on the governor's budget. The purpose of these hearings is to resolve as many issues with each budget proposal as possible.

On or before May 14, the governor is given the opportunity to revise his proposal in the so-called May Revision. In this document, the governor takes into account any changes in workload (more inmates in prison than projected in January, for example), and revenues resulting from taxpayers paying their taxes in April.

Shortly after the May Revision is provided to the Legislature, that body convenes a Budget Conference Committee to come up with a final legislative version of the budget. Once that committee gets started, the leadership group known as The Big Five may begin to meet. The Big Five consists of the governor, and the Democratic and Republican leaders of the Senate and the Assembly. They review the major differences between the legislative houses, the political parties, and the governor. Often, they provide direction to the conference committee on what will be an acceptable compromise on important issues.

After the Budget Conference Committee concludes its work, the compromise version of the budget is voted on by both the Senate and the Assembly. If it passes both houses of the Legislature by a two-thirds vote, it is sent to the governor for final approval. At that time, the governor may reduce any appropriations made in the budget through his blue pencil power.

Unless that reduction is overridden by a two-thirds vote of the Legislature, the governor's reduction is final. While such an override may appear possible, it has not happened in many years.

HOW THE BUDGET AFFECTS YOU
Most importantly, the budget determines how much money the Department of Corrections and Rehabilitation will have available for its operations. In turn, that will affect staffing levels, the number of new CPOs hired in any year, and the number of positions that must be kept vacant. Almost everything that the Department spends money on is funded through the budget process.

In addition, the budget process also affects correctional policy. For example, this year the governor proposed that the Legislature give the Department the authority to contract for 8,500 private beds to house future inmate growth. So far, the Department has not been successful in convincing the Legislature of the appropriateness of that proposal.

In the end, the state budget process can affect your working conditions very significantly. It can determine who operates future facilities, the adequateness of staffing levels in all operations, and the amount of training available to the workforce.


CCPOA Chief Lobbyist Craig Brown has over 24 years of executive and legislative experience. He has served as California's director of finance, and has served on more than 60 authorities, boards, and commissions dealing with virtually every aspect of state finance. Prior to his tenure as finance director, Brown spent 13 years as a leader in California's correctional system, including experience as the undersecretary of the Youth and Adult Correctional Agency during two administrations, and as director of the California Youth Authority.


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