Waiting for a Budget Decision from the Governor

The legislature passed a budget – sort of – last night to meet the June 15 deadline.  That – they think – will get them paid, pursuant to the new constitutional arrangements enacted by voters in 2010.  It doesn’t mean that the governor won’t veto the budget (as he did last year).  News accounts suggest that negotiations are continuing between the legislative Dems and the governor.  Note that the governor has line-item veto powers which could be used to cut more out of the budget than what was enacted.

On the pay issue: Last year after the governor vetoed the budget, state controller John Chiang then refused to pay legislators for each day there was no budget after June 15.  A court decision ultimately indicated that he did not have the power to withhold pay but no back pay for the money lost was demanded by the legislature.  Could it happen again? Chiang would certainly wait for the governor’s decision on whether to veto. But he would have the same grounds as last year, i.e., not all of the bills needed to implement the budget were passed.  If there is a veto and he refused to pay, he would be taken back to court.  Some readers may recall his confrontation with Gov. Schwarzenegger over whether state workers had to be paid only the minimum wage if there was no budget in place.  He kept losing in court and coming up with additional rationales for not implementing the minimum wage – and no one ever was paid the minimum wage in the end.  So if there is a veto, don’t completely count out a confrontation with the controller.  The combined veto+no pay made both the governor and the controller media heroes last year.

Anyway, stay tuned on this blog.  If there is something really urgent to report – as per below? – we will do so:
[youtube=http://www.youtube.com/watch?v=7DN5wzVVGpA&w=320&h=195]