Republicans veto budget bill

Schwarzenegger to order third furlough day, call special session of Legislature
By Shane Goldmacher and Michael Rothfeld
Los Angeles Times
July 1, 2009

Gov. Arnold Schwarzenegger this morning will order state workers to take a third day off each month without pay, administration officials say, after Republican lawmakers acting with his support blocked a Democratic proposal to ease the state's deficit and allow the government to keep paying bills.

The latest reductions may be necessary after Tuesday night's inaction further exacerbated the state's financial problems by leaving on the table billions of dollars in potential cuts to school programs that had to be made before the new fiscal year began at midnight...

Democrats in the Legislature will also propose additional cuts today. They are targeting redevelopment agencies. Their plan would raid $1.2 billion of agency funds earmarked for affordable housing. As part of the plan, state requirements that redevelopment projects include such housing would be eased.

Aides to the lawmakers and governor said the shortfall, previously projected at $24.3 billion, increased when Republican state senators blocked a last-ditch effort Tuesday night to slice $3.3 billion, mostly from education.

...Schwarzenegger had promised to veto the bills unless they were accompanied by a complete plan to balance the budget.

Steinberg, saying Republican lawmakers had taken their direction from Schwarzenegger in voting it down, accused all of them of "the most irresponsible act I have seen in my 15 years of public service."

Officials said the failure to make the cuts means the state will now owe several billion dollars more to schools in the coming fiscal year because the state's complex education financing formula is based on the previous year's appropriation.

"It does make the problem bigger - there's no question about it," Senate Republican leader Dennis Hollingsworth of Murietta...




Montebello forgoes July 4th celebration, gives money to food bank
By Amanda Baumfeld
Whittier Daily News
06/30/2009

MONTEBELLO - Instead of shooting off fireworks Saturday, the city will provide meals to 5,200 needy families all year long, officials said Tuesday.

The City Council recently voted to allocate $40,040 to a meal program in conjunction with Hearts of Compassion, a nonprofit food bank.

The funds were originally supposed to go toward an annual Fourth of July celebration that typically draws between 7,000 and 10,000 people. The event has been canceled.

"There is an unprecedented need for basic food assistance," said Councilman Bill Molinari, who suggested the food program. "I wanted to try to do something that would help folks in our own community. That's what community is all about."

Hearts of Compassion, located on Maple Avenue, will be the main food distributor for the program.

Churches and local agencies will screen Montebello residents and submit the names of the neediest families to the program. The families will then be given vouchers from the city. ..