Cogdill, Villines again push on budget reforms

State legislative Republican leaders made another push for a spending cap and rainy-day fund Friday to accompany any agreement on a much-overdue state budget.

Assembly Republican Leader Mike Villines and State Senate Republican Leader Dave Cogdill both made that push in advance of a committee hearing this afternoon on a Republican-sponsored bill that would put those mechanisms in place.

"The goal would be to get this to voters in November," Villines said, acknowledging that many expect the final budget to have at least one provision that voters would have to approve. "But we're not driven by a deadline. We're driven by what's right."

Cogdill and Villines, accompanied by fellow Republican legislators who are part of their respective chambers' budget committees, said the cap and the rainy-day fund are imperative, but the language underlying them is up to negotiation.

With the state budget 46 days overdue, and a deadline to add something to the November ballot days away at most, pressure is ratcheting up on both parties to pass a budget that closes a $17 billion deficit.

Republicans have increasingly declared the reforms discussed Friday, and no new taxes, as absolutes in any budget discussions. Legislative Democrats have said the state needs more revenues to close the gap, and have largely resisted any long-term budget reforms.

Earlier this week, State Sen. Pro Temp Don Perata (D-Oakland) announced he had the basis of a budget agreement with Gov. Arnold Schwarzenegger that included the rainy-day fund and spending cap. Within hours, he had to concede that no such agreement was in the offing.

Speaking at the Republican press conference Friday, Assemblyman Roger Niello (R-Fair Oaks) said what Perata announced doesn't match what Republicans are after.

"It would've still allowed an upside, (an) ‘April surprise' with revenues to be spent on ongoing programs," said Niello, Vice Chair of the Assembly Budget Committee. "That's exactly what got us into this situation."

The Republican legislators said their proposal would take any "surprise" additional revenue and put it into a rainy-day fund for lean budget years like this one. While state spending could still grow, it would do so in accordance with natural population and economic growth, Cogdill said.

State Assembly Speaker Karen Bass has scheduled a vote for Sunday on the Democrats' current budget proposal, the first such vote since the new fiscal year began without a budget on July 1.

Because that proposal features tax increases on the wealthy, few expect it to receive enough votes from Democrats and Republicans to meet a necessary two-thirds majority.