PEPA - PEPA News

December 2011
As 2011 winds to a close we look back on the legislative year and prepare for 2012. While this was the first budget enacted before July 1, it was littered with gimmicks and far too optimistic revenue projections. In order to allow for the budget to be financed and revenue warrants to be issued to the state (essential for cash flow purposes) the budget had to include automatic spending cuts enacted by a trigger. The trigger is “pulled” if the revenue projections fall below expectations. The Legislative Analyst Office has already stated that revenues are running over $3 billion below projections and the Director of Finance will release her findings on December 15th. All indications are that the “triggers” will be pulled, requiring mid-year budget cuts of $3.7 billion – 40% from education, the rest from a cross section of programs.

Impacts on agricultural interests from the current budget are significant including $19 million in general fund cuts to the Department of Food and Agriculture from a cross section of programs from pest inspection and prevention, increased fees for phytosanitary certificates, elimination of the $32 million for the state’s fair system and fee increases in many agencies that impact business and agriculture most notably $24 million increase in fees at the Water Resources Control Board. The association is actively meeting with the Department and our industry allies assessing what additional potential negative impacts from the triggers.

The Governor completed his first bill signing of his third term on Sunday October 9th. His overall veto percentage was low, 14.36 percent. Number of bills considered by the Governor was 870. Typical with Governor Brown, there was not a clear pattern with bills, but he was clearly more friendly to unions and public employees.

For agriculture it was a mixed bag. After vetoing the “card check for ag bill” in the summer, the Governor signed SB 126 (Steinberg) which retains the secret ballot but upon a finding by the ALRB of an unfair labor practice during the election that rises to a level where a fair election cannot be held, the ALRB can certify a union as the sole representative for that workplace.