Politics

SACRAMENTO (CBS 5 / KCBS / AP) ― California Gov. Schwarzenegger met with legislative leaders Sunday evening for 90 minutes with no report of any progress made on presenting a balanced budget.

A second meeting had not been scheduled, even though California lawmakers return from summer break on Monday with only four weeks left to deal with hundreds of remaining bills.

For the 23rd time in the last 32 years, California has begun a new fiscal year without a budget, leaving it unable to pay its suppliers, fund some school programs and pay the salaries of elected officials and their staffs. It also has delayed payments to certain health care providers that care for the poor.

Democratic State Senate President Pro Tem Don Perata of Oakland said California's budget situation is dire.

"I'm surprised its gone on this long for one reason: we are perilously close to going bankrupt, to not being able to pay our bills," he said. 

The governor signed an executive order last week laying off more than 10,000 state workers and slashing the pay of thousands more to save money.

Perata criticized Schwarzenegger's move, saying it was unproductive.

"That also tells a lot of people, whether their firefighters, teachers or nurses, after we get these people, we're going to come after you. I mean, the only money we have in the state of California is to provide services, and those are the people that provide those services. So now you have a lot of nervous people around, and a lot of people who are afraid that the governor will sacrifice them," he said.

Action on a budget has been held up by a dispute between Democrats and Republicans over how to erase a $15.2 billion deficit. Democrats want a combination of tax increases and spending cuts. So far Republicans have balked at raising taxes or closing any tax loopholes.

Democrats need a handful of Republican votes in both houses to put together the two-thirds majorities needed to approve a budget and raise taxes.

Perata warned that if budget talks don't progress soon, he'll bring the Democratic budget proposal up for a vote.

"Republicans don't want to make the cuts that are necessary to balance the budget without a tax increase," he said. 

State Controller John Chiang said last week that the budget deadlock prevented him from making $1.2 billion in payments in July. Another $3 billion in payments would be delayed if no budget is approved by the end of August.

Lawmakers were supposed to approve a new budget by June 15. The new fiscal year started July 1.

The longest the state has gone without a budget, according to Department of Finance records, was in 2002, when lawmakers didn't pass one until Aug. 31. Then-Gov. Gray Davis signed it five days later.

Lawmakers are required to wrap up their 2008 regular session by Aug. 31, but Schwarzenegger could call them into special session if they haven't approved a budget by then.

Democrats have an incentive to finish their work early so they can attend their party's national convention, which begins Aug. 25 in Denver. The Republican convention starts Sept. 1 in Minneapolis.

Here are some of the bills awaiting final action:

SICK LEAVE - Assemblywoman Fiona Ma, D-San Francisco, wants employers to provide their workers with at least five days a year of paid sick leave. Companies with more than 10 employees would have to provide at least nine days.

CALORIE COUNTS - Legislation by Sen. Alex Padilla, D-Los Angeles, would require chain restaurants to tell customers how much fat, carbohydrates, salt and calories are in their standard menu items.

CARBON MONIXIDE - A bill by Sen. Alan Lowenthal, D-Long Beach, would require that all homes have carbon monoxide detection devices similar to smoke detectors.

PORN TAXES - Assemblyman Charles Calderon, D-Whittier, has a bill that would impose an 8.3 percent sales tax on tapes, books and other "adult entertainment" items. It also would slap a 25 percent tax on the gross receipts of strip clubs, X-rated theaters and other "adult entertainment" venues.

PLASTIC BAGS - Legislation by Assemblyman Lloyd Levine, D-Sherman Oaks, would require supermarkets and pharmacy superstores to charge customers 25 cents for plastic carryout bags unless the stores meet plastic bag recycling requirements.

HIGH-SPEED RAIL - Assemblywoman Cathleen Galgiani, D-Tracy, is trying to get legislation passed that could help convince voters to approve a $9.9 billion high-speed rail bond measure on the November ballot. The bill would require greater accountability before the bond money could be spent, including requiring the state's high-speed rail board to develop a detailed funding plan before beginning any on any segment. The proposed 700-mile system would link the state's biggest cities with trains running at speeds of up to 220 mph. The measure has been held up by a Republican blockade in the Senate, but Galgiani said she's hoping to work out amendments that will remove GOP opposition.

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