Budget Blues Turn To Deal

Governor Arnold Schwarzenegger’s threat to veto all legislation on his desk, including energy bills, led to a revised deal late September 18. The governor was leveraging his Bic over his bully pulpit to get his way after over 80 days of impasse over the state budget. Energy bills were in the veto zone. “I’m very worried,” said an Assembly Utilities and Commerce Committee senior staff member, who asked not to be named earlier this week. State lawmakers expected the governor to sign most of the energy bills they passed because they do not include any general fund appropriations. Energy programs are largely funded through utility surcharges and special fees. “There was not a lot of heavy energy legislation this year,” said Randy Chinn, chief consultant to the Senate Energy, Utilities and Communications Committee. Lawmakers attempted to tackle without success some major energy issues, such as amending the renewable portfolio standard, direct access provisions and residential rate design. AB 2768 by Assemblymember Lloyd Levine (D-Van Nuys), backed by the solar power industry, is typical of the energy bills passed by the Legislature and awaiting the governor’s signature. The bill would remove the mandatory time-of-use tariff for utility ratepayers with solar energy systems and authorize the California Public Utilities Commission to develop a time-variant tariff. “In a normal process I’m confident he would sign that one,” said the Assembly staffer. The compromise budget allocating $104 billion for the general fund pleased no one. It also caused the Republican governor to blow his fuse at a Sacramento press conference. “I will not sign a ‘get out of town budget’ that punishes taxpayers, pushes the problem into the next year and includes fake budget reform,” he vowed. The governor blamed the near-$15 billion deficit on a flawed budget system that breaks down every year because state lawmakers have neglected its “rainy day fund” to draw from during economic downturns. The new budget allows easier access to that fund, according to reports.

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Budget Blues Turn To Deal

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