Controller Chiang Docks Leg Pay

John Seiler:

In an unprecedented move, Controller John Chiang just suspended Legislators’ pay for not passing a budget by June 15, as is required by Proposition 25. In a press release, his office explained his action:

His analysis sought to determine whether the budget met the requirements of Proposition 25 and Proposition 58, which forfeit Legislative pay if a balanced budget is not passed by June 15.

“My office’s careful review of the recently-passed budget found components that were miscalculated, miscounted or unfinished,” said Chiang. “The numbers simply did not add up, and the Legislature will forfeit their pay until a balanced budget is sent to the Governor.”

According to the Budget Analysis on the Controller’s Web site, the budget is $1.9 billion in the red — unbalanced.

Major shortfalls include $1.3 billion in additional spending needed to meet the Prop. 98 spending requirements. And the following fees were overestimated: $320 million hospital fee from SB 335; $103 million from SB1X 9 Managed Care Plan Taxes; $300 million AB1X 22 Motor Vehicle Fees; $22 million for increased premiums for Healthy Families; and $209 million for realignment.

On the positive side of the ledger, the SB 156 Jobs Credit was not enacted, reducing spending by $94 million.

Chiang’s action throws the Legislature in turmoil, forcing them to go back and do their jobs right.

He also vindicates Gov. Jerry Brown’s veto of the budget  because it wasn’t balanced.

June 21, 2011