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Davis-Schwarzenegger Gubernatorial Transition & First 60 Days
January 12, 2005 |
LIBRARY Institute of Governmental Studies University of California 109 Moses Hall #2370 Berkeley, CA 94720-2370 510-642-1472 (voice) 510-643-0866 (fax)
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Who pays for the transition? In years with scheduled gubernatorial elections the California Dept. of Finance automatically includes funding to assist gubernatorial transitions in the appropriate fiscal year appropriation. However, in the case of this unexpected recall there was no appropriation included in the 2003/04 budget and the Finance Department had to make a special appropriation to cover transition expenses.
Schwarzenegger appointed 150-200 people to his personal staff, including his chief of staff, and there are approximately 1,000 administrative appointments the governor needs to make early in his administration. The California Department of Finance allotted $650,000 to cover the costs of the transition, $100,000 of the appropriation allotted to the out-going governor. In accordance with his campaign promise "to open the books" on California's state finances, Schwarzenegger appointed Donna Arduin, state budget director of Florida, to direct an audit of California's budget. In another follow-up on a campaign pledge, the governor-elect directed his lawyers to investigate a mechanism to repeal the increase in the vehicle license fee, a controversial measure approved by Gov. Davis to close part of the state budget short-fall. Immediately after his inaguration, Gov. Schwarzenegger signed an executive order rescinding the increase in the license fee. Additional issues the governor-elect faced immediately upon assuming office include preparation of the 2004/05 state budget, which must be submitted to the state printer by mid-December for submittal to the Legislature in early January. He must also forge a relationship with a legislature controlled by the Democrats, and deal with special interest groups including the Indian tribes, whose influence in California politics Schwarzenegger pledged to control during his campaign.
On January 9 Gov. Schwarzenegger released his
2004-05 budget, a $99.1
billion spending plan for California. The Governor's budget includes cuts
in public welfare, education and local government programs to reduce the
projected $14 billion deficit in 2004-05. Without the passage of
Proposition 57, "The Economic Recovery Bond Act" which would authorize the state to sell bonds to retire
the 2003-04 deficit, and the cuts the Governor proposes in his 2004-05
budget, the total state budget deficit by June 30, 2005 could approach $27
billion.
| Prepared by the staff of the IGS Library. Send comments to igsl@uclink.berkeley.edu. |
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