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Yesterday afternoon, Governor Schwarzenegger vetoed ABX8 2, a measure that contained budget year budget changes that legislative Democrats argued addressed $2.2 billion in budget year savings.  Governor Schwarzenegger agreed with legislative Republicans, indicating in his veto message that the bill “does not actually implement spending reductions.”  The problem is that the bill outlines reductions to a 2010-11 state budget that does not yet exist.

The language of the bill goes something like this:

(Update 11:18 a.m ) The transportation tax swap measures were passed by the Legislature and will now go to the Governor for action.

Assembly Member Nielsen opposed the measure on the grounds that the measure is a raid on local government funding and is in fact a tax increase without the required 2/3rds vote threshold. Assembly Member DeVore also in opposition because the transportation tax swap is another run around Proposition 42.

Assembly Member Eng spoke in support for the proposal.

(UPDATE – 3/4/2010) The clean-up bill, ABX8 14, passed the Senate and  the Assembly and will be sent to the Governor.

It seems like every day we hear another disturbing report regarding the “perfect storm” facing our members: the recession has caused the demand for services to skyrocket. At the same time, revenues to provide these services continue to drop.

The latest news was by New America Media in a piece titled “Indigent Health Care Program Battered by Recession.”  The article focused on the County Medical Services Program (CMSP), which provides health care to indigent adults in California.