Hero Text

1972 – 50 years of service to the commercial industrial retail real estate industry – 2022.


July 1, 2011

Although we all wish the budget was passed on time because legislators toiling under the Gilded Dome of the Capitol were all working together for the betterment of the State. The more likely cause is the voter’s passage of Proposition 25 last year.

That ballot measure deleted the 2/3’s majority vote needed to pass a budget and included a “sweetener” that docked legislative pay for not meeting the deadline. No one in the Capitol thought that latter provision would ever actually be enforced. However, when Governor Brown vetoed the budget originally presented to him on June 15 – the first time ever a budget had been vetoed – he emphasized the fact that it was not balanced, which set forth a chain of events that led to State Controller John Chiang withholding legislative paychecks. Then negotiations began in earnest.

And elimination of the 2/3’s majority vote also played a key role, in that no Republican votes were needed to pass the spending plan. But it should be noted, that a 2/3’s vote IS still required for tax increases, so the majority party still had a difficult time coming together on a plan, because it reduced government spending much more than they would have preferred.

Posted In Budget

Leave a reply