Comments from Bruce Blanning at the Fort Sutter PECG Meeting
January 22, 2004

The Governor's budget proposal for the next fiscal year addresses a $14 billion shortfall (primarily through program cuts and shifting of funds). Major losers include transportation, higher education, and local agencies. However, the budget does not contain substantial staff cuts in departments with PECG members. So, thus far, attrition should do the trick unless the revenue picture gets worse between now and later this spring, when the budget will be adopted by the Legislature and the Governor. The wild card in this process is the Department of Finance, which has a habit of demanding larger staffing cuts unrelated to the budget or program needs.

The PECG Board of Directors recommends "yes" votes on Propositions 56, 57 and 58 on the March 2 ballot. Prop 56 would make it easier for the state Legislature to approve a state budget each year, by reducing the vote requirement from 67% to 55%. This can be significant for state employees in light of the Supreme Court decision that some employees won't receive their full paychecks in the absence of timely passage of the budget.

Props 57 and 58 are the measures which would authorize a $15 billion bond to address the budget deficit this year and next year, along with a requirement that the budget not spend more money than it takes in future years, except for fiscal emergencies. Both measures must pass for either to take effect. If they don't pass, the Legislature and the Governor will have to cut an additional $15 billion from the state budget next year, probably leading to substantial program and staffing cuts.

Dave Jones, your speaker at the meeting, has proven to be a good friend of PECG and has been endorsed by PECG. A member of the Sacramento City Council since 1999, Dave personally led the effort to get the Council to oppose Prop 35, the CELSOC-sponsored ballot measure in 2000 which makes it easier for the state to contract out Unit 9 jobs to the private sector. Some of Dave's opponents in his race for the Assembly (9th District) did not support PECG's position. Dave will be an excellent replacement for Darrell Steinberg, who is being termed out. Those wishing to help Dave in his campaign for the March primary (Democratic nomination) by phone banking, envelope stuffing, precinct walking, or any other activity, should contact the PECG office (446-0400) and ask for Nadine. She will put the campaign in touch with anyone who wants to help Dave get elected.

There are a lot of changes going on within the new Administration. For example, at DPA, the Director has been removed (but not permanently replaced), the Chief Deputy Director leaves next week, the Chief Counsel has left, and three of the Labor Relations Officers assigned to Unit 9 have all left for other jobs. It's a good thing we're not currently trying to bargain a new MOU, because if we were, there would be no one there to bargain it with.