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  • GOVERNOR BROWN VETOES ATTEMPT TO ALTER BUDGET “TRIGGER” CUTS

    Posted: September 16, 2011 | Posted by Crystal Whitfield | No Comments

    Saying that, “job number one is protecting the integrity of our balanced budget, because it directly impacts California’s financial stability,” Governor Brown announced that he signed two bipartisan bills relating to health care that will bring in additional federal revenue.

    In the same release, the Governor announced that he vetoed an attempt by Legislative leadership to alter the “trigger” cuts that were contained in the budget that passed earlier this year.

    “I am vetoing a third bill that would have undermined investor confidence in California by altering the budget’s mechanisms for automatic trigger cuts. The trigger mechanisms were adopted when I signed the budget and were essential to improving our credit standing. Indeed, our no-gimmick, on-time budget was the reason S&P assigned its highest rating to the short-term notes sold this past week—the first time that’s happened since 2007,” said Governor Brown.

    The Governor vetoed SBX1 6 by the Committee on Budget and Fiscal Review, which alters the trigger cuts mechanism in the 2011-2012 state budget. The bill would have required the Director of the Department of Finance to consult with legislative leaders on alternatives to the cuts outlined in the budget and thereby raise questions that could affect the sales of Revenue Anticipation Notes and General Obligation bonds.

    Click here to read the veto message.



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