Schwarzenneger breaks promise and signs a bill
By Matthew Yi, Chronicle Sacramento Bureau
Tuesday, August 26, 2008
(08-26) 20:35 PDT Sacramento --
Gov. Arnold Schwarzenegger, who promised not to sign any bills until lawmakers reach a budget deal, reversed his position today and signed a bill for a statewide bullet train system that he strongly supports.
The governor also wants to make exceptions for three other proposals that he has been promoting: budget reform; changing the state lottery to allow California to borrow against future ticket sales; and a bond proposal for water infrastructure.
The high-speed rail legislation will replace a $10 billion bond measure on the November ballot with a revised version of the proposal that makes the bullet train system more appealing to voters statewide.
The legislation, AB3034, adds more specific oversight and spending rules to the plan, which calls for a 700-mile rail system that moves trains between San Francisco and Southern California at speeds of up to 220 miles per hour.
Schwarzenegger had a change of heart because the train rail measure - and his three other proposals - require voter approval, and the window of opportunity to place them on the November general election ballot is closing fast, Aaron McLear, a spokesman for the governor, said today.
Many lawmakers believe the end of this week is the drop-dead deadline.
Lawmakers have balked at the governor's budget reform proposal that includes a rainy-day fund and limits spending. And as for the governor's $9.3 billion water bond proposal, Senate President Pro Tem Don Perata, D-Oakland, has said his first priority isnegotiating a budget deal that is 58 days late.
Assembly Democrats have rolled out their own $9.8 billion water bond, which is similar to Schwarzenegger's plan, and held an informational hearing today. Several lawmakers and observers praised the Democrats for a plan that shared so much common ground with the governor's proposal. Nevertheless, with the budget debate at a stalemate, it is unclear if any water bills will get through the Assembly and Senate in time to be included on the November ballot.
As for the lottery plan, while there is general agreement among legislative leaders that the state should borrow against future state lottery sales, there is also consensus that the plan would not be sufficient to close the current fiscal year's $17.2 billion budget gap.
This is not the first time this year that the governor has made an about-face. Last week he unveiled a new budget proposal that includes a temporary one-cent-per-dollar increase in sales tax, reversing his earlier position of no new taxes. The governor last week told The Chronicle that while he doesn't like raising taxes, he believes it would be a critical compromise on his part to get Democrats to agree to making structural changes in budgeting.
Schwarzenegger also told The Chronicle that he believed a budget deal would take several more weeks and said he would consider calling a special election for measures that require voter approval.
Then, on Monday evening, Schwarzenegger sent a letter to legislative leaders urging them to approve the four measures immediately so he could sign them and put them on the November ballot.
"The governor believes just because the Legislature is late two months in doing their job (of approving a budget), voters shouldn't be allowed to decide on key issues," McLear said.
But Assembly Speaker Karen Bass, D-Baldwin Vista (Los Angeles County), today criticized the governor in a written statement saying: "It's time for the governor to stop sending letters and holding press conferences and start getting votes from legislators of his own party so that our state can move forward on these critical issues."
Perata echoed Bass' sentiment, adding that the Senate is nowhere close to being ready to vote on issues of budget reform, lottery and a water bond.
"I must confess, I've stopped listening to (the governor on) what we should and shouldn't do," he said.
Republican leaders said while they agree in principle that the state needs budget reform and a water bond, they would need to see the details of any proposal that comes up for a vote in the Legislature. Three weeks ago Schwarzenegger announced he would not sign any bills until lawmakers approved a spending plan for the fiscal year that began on July 1.
The Democratic-controlled Legislature responded by continuing to debate and vote on hundreds of bills unrelated to the budget. The Legislature planned to hold approved measures until the end of legislative session, which is Sunday, then send them to the governor. Schwarzenegger would then have until the end of September to sign or veto the bills. If he doesn't act on them, the legislation automatically becomes law.
What is changed in bond proposal
AB3034, which Gov. Arnold Schwarzenegger signed Tuesday, would change the language of the high-speed rail bond measure to:
-- Keep the San Francisco-to-Los Angeles segment as the first priority for bond revenue but add Anaheim to that segment. It would also allow money to be spent on other segments as long as that did not delay construction of the main line.
-- Prohibit construction of a station between Gilroy and Merced, a point of concern among environmentalists.
-- Place limits on spending, including the amount spent on studies and plans, administration and purchase of right of way.
-- Require a detailed funding plan for any segment before funds can be requested.
-- Require the High Speed Rail Authority to complete an updated business plan by Oct. 1.
-- Create a committee of experts to review planning, engineering, financing and other plans prepared by the authority.
E-mail Matthew Yi at
myi@sfchronicle.com.
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