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State budget finally passes, governor signs

All 25 Senate Democrats, two Republicans vote for its passage 52 days past the deadline.

August 25, 2007|By Anthony Kim and Rachel Kane

BURBANK — Local state-funded agencies let out a collective sigh of relief Tuesday when state lawmakers approved, more than seven weeks late, a $145-billion budget.

“The budget is done, and it’s on its way to the governor at long last,” said Assemblyman Paul Krekorian, whose district includes Glendale and Burbank.

Gov. Arnold Schwarzenegger signed the budget Friday.

All state Senate Democrats and two Senate Republicans voted in favor of the spending plan — a total of 27 votes — which in the 40-member Senate barely makes the two-thirds vote required to pass the state budget, Krekorian said.

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The budget stalemate, which went 52 days past the constitutional deadline, was beginning to take a toll on health-care providers, day-care centers and other agencies that rely on state funding.

The most affected agencies were smaller businesses or facilities that did not have cash reserves to carry them through the budget impasse, said Hallye Jordan, spokeswoman for California State Controller John Chiang.

Based on estimates from last year, the state owes about $1.1 billion for July and $2.1 billion for August, Jordan said.

The Burbank Unified School District remained largely unaffected by the budget delay, Supt. Gregory Bowman said.

“There was nothing in the school district,” Bowman said. “And so far as the budget is concerned, of course we’re happy now, even though it’s two months late, to have a budget. That sets the stage for knowing what our funding and our revenues will be for the fiscal year that we’ve been in since July 1.”

Corporate-backed entities also were not adversely affected by the budget impasse.

The more than seven-week- long stalemate was due to a small minority in the state Senate, all Republicans, who refused to agree to the budget, Krekorian said.

“I think it’s disgraceful that this tiny little minority in the legislature is able to prevent the people of California from having a budget that was fiscally responsible, involved no new taxes, no new government programs and the largest fiscal reserve in the history of California,” he said.

Republican State Sen. Bob Margett, whose district includes La Crescenta, said he did not vote for the budget because it was fiscally irresponsible.

“I felt the budget needed a lot of tweaking,” he said.

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