Budget Battle:
Holding the Line in the Stalemate

In the face of a state budget deficit of $23.6 million and threats of across-the-board 20% budget cuts, over 250 Local 535 members joined thousands of SEIU members to demonstrate at the state Capitol over the last few months. The Democratic leadership proposed several measures to raise taxes to make up for the deficit, but the Republican leadership has refused to accept any tax increase. Bolstered by the workers’ support, state Democrats have hung tough. At this point, one Republican in the Senate and two Republicans in the Assembly have agreed to vote for the tax increases, and two others are considering voting for them. As we go to print, there is still no sign that the budget stalemate will be resolved, and some speculate that California will not have a new budget until after the November election. If there are no increases in revenues, as many as 5,000 county social services jobs may be cut. Governor Davis is calling for 20% cuts across the board in all state agencies to make up for the present and future deficits.

Local 535 brought members to Sacramento from around the state a couple of times a week in April through August to lobby state legislators. They also held mass rallies for mental health services, developmental disabilities, health care, child welfare, and other social services.

In the past, the Republican leadership has been successful in filibustering the budget until the Democrats have given in, but this time SEIU launched a campaign to urge the Democrats to stand firm. So far, the only agreed-upon tax increases have been on the vehicle license fee, which was cut last year, and on the cigarette tax. Many fear that if the cigarette tax is raised significantly, as proposed, smokers will start buying their cigarettes over the internet and the cigarette tax revenues will actually go down. This has happened in other states where taxes were raised to an astronomically high level.

In related budget news, Assembly Bill 364, which was to lower social worker caseloads 20% per year until they reached the figures recommended in the Senate Bill 2030 authorized study, was held up in the hearing process. The budget deficit is so severe that the Senate Appropriations Committee is holding any bills with even potential future fiscal increase. Lawmakers are concerned that a large portion of the budget deficit is a result of lower-than-expected revenues from state taxes on stock market capital gains. With this year’s stock market crash, in all likelihood, next year’s deficit will be much worse.

It is not over yet. Local 535 members interested in lobbying are urged to contact political directors James Johnson at the Pasadena office (626 796-0051) or Jerry Fillingim at the Oakland office (510 893-8766).