Calif. lawmakers fail to pass budget by end of session

AP Photo/Rich Pedroncelli

State Senator Bob Dutton, R-Rancho Cucamonga, right, thumbs through a magazine as he talks with State Senate Minority Leader Dennis Hollingsworth, R-Murrieta, during the debate over a Republican budget plan before the Senate at the Capitol in Sacramento, Calif., Tuesday, Aug. 31, 2010. Lawmakers rejected two different versions of the state budget, one, proposed by the Democrats and the other, a Republican plan, leaving the state two months into the 2010-2011 fiscal year without a spending plan.

In Sacramento tonight, California state lawmakers wrap up a two-year legislative session. But they'll have to return to the capital at some point to pass a state budget.

California legislators passed hundreds of bills — but not the most important one. Two competing state spending plans — one by Democrats and one by Republicans — failed to get enough votes.

"Somebody's got to show me money for God's sake," said San Bernardino Republican Senator Bob Dutton.

Dutton voted against the Democrats' plan because it would enact a new oil tax, "reform" personal income taxes and delay corporate tax breaks.

"Your budget's going to require almost another $5 billion in additional tax increases," Dutton said. "Does anybody really think that you're going to restore the economy by increasing taxes?"

Los Angeles Democrat Senator Gil Cedillo posed a similar question about the Republican's proposals to eliminate Cal-Works — the state's welfare to work programs — and cut childcare for working parents.

"Really. We can't afford Cal-Works? Really. We're going to get rid of childcare. Really? We're going to starve the people, really? That’s what this budget does and that's what we're going to do?" Cedillo said. "This really is our proposal for California? This is how we're going to restore the promise — really?"

The failure to pass a spending plan creates some real consequences for California. The state controller has already deferred September's payments to school districts, and he’s preparing to pay the bills with IOUs.