​(June 17, 2011) The day after the California Legislature approved the 2011–12 state budget by a majority vote, Governor Jerry Brown vetoed the budget, saying it is not “a balanced solution” and calling a balanced budget “critical to our economic recovery.”

In his veto message, the Governor criticized the budget for continuing “big deficits for years to come,” adding billions of dollars of new debt, containing “legally questionable maneuvers, costly borrowing and unrealistic savings.” (See YouTube Video)

“Governor Brown’s budget veto today provides an opportunity for legislators to pass a comprehensive budget solution that will provide the certainty California needs to attract jobs and new business investment,” said California Chamber of Commerce President and CEO Allan Zaremberg in a June 16 statement.

“We will continue to actively work with the Legislature and the Governor to find the sweet spot that will provide appropriate levels of funding for critical programs like K-12, higher education and the courts while still living within our means. I’m confident that it can be done.

“As reasons for his veto, the Governor identified additional deficits and unrealistic savings. A bipartisan solution that remedies his concerns will provide a budget that truly improves our economy and job climate and resolves this crisis once and for all.”

The budget bills passed June 15 by a simple majority vote—the new procedure voters approved with Proposition 25 last November—meeting by hours the voter-imposed deadline to avoid a cutoff of salaries and expenses. Only one or two Democratic legislators strayed from party lines on various budget elements.

After making nearly $13 billion in program cuts in March, the Legislature needed to achieve another $10 billion in solutions to meet the Constitution’s balanced budget requirement.

Governor Brown and legislators were unable to reach consensus on a comprehensive solution proposed by the Governor that included seeking voter approval of extending for five years the temporary tax increases adopted in 2009 (sales tax, vehicle license fee and personal income tax). Republicans sought reforms in state spending, public pensions, and regulatory streamlining, but those were not part of the now-vetoed budget.

Unknown still is the fate of budget package elements that would have: eliminated redevelopment agencies unless they participated in an alternative voluntary redevelopment program; reduced funding for higher education and trial courts beyond the severe cuts adopted in March; and attempted to avoid the two-thirds vote requirement for new taxes by continuing 0.25% of the 1% sales tax increase that was due to expire at the end of June.

Staff Contact: Marc Burgat