Democrats’ Attempt to Override Deukmejian’s School Aid Veto Fails

Unable to muster even a single Republican vote Monday, state Senate Democrats failed in their bid to override Gov. George Deukmejian’s veto of a $76.2-million emergency school finance measure.

The override vote broke along strictly partisan lines, losing 24 to 12 with all the “no” votes cast by Republicans. Democrats needed 27 votes, a two-thirds majority, to override the vote.

The vote came just hours after release of a new report by the legislative analyst’s office showing that state tax collections are running at least $450 million higher than expected.

Gain May Be Temporary

According to the report, state tax collections have actually generated $921 million more in cash than revenue estimates made in the governor’s January budget. But the report warned that much of that gain may be temporary--the result of Californians prepaying taxes in 1986 so they would be eligible for deductions no longer allowed under the law that took effect Jan.1.

The Department of Finance confirmed that revenues are nearly $1 billion ahead of estimates, but an official warned against considering the unexpected tax receipts as “money in the bank.”

“We definitely won’t keep all that money. A lot of it is due to what we see as a temporary increase in cash flow. Expenses are also running much higher than expected,” said Lois Wallace, assistant director of the Department of Finance.

Democrats hoped that the new revenue forecast, along with earlier Republican support for the school funding measure, would be enough to shake lose the handful of GOP votes they needed to override the veto.

But Republicans, many of whom had voted for the school finance measure in March, held firm.

Senate Republican Leader James W. Nielsen of Woodland called the override move “political posturing” and “a blatant attempt” by Democrats to embarrass the governor. He said that even though GOP lawmakers supported giving schools the money, they would stick with Deukmejian.

Deukmejian earlier blocked the funds to public schools and community colleges, saying the state could not afford to finance the programs unless Democrats specified where the money would come from to pay for them.

Specifically, the governor asked lawmakers to take the money from surplus earnings accumulating in Public Employees’ Retirement System pension funds. Democrats, under pressure from public employees’ unions, rejected that proposal.

Sen. Barry Keene of Benecia, the Democratic floor leader and author of the education funding bill, argued during the floor debate that Deukmejian “knows the money is there” to fund the school aid package. But he said Deukmejian is refusing to free the money in order to force Democrats to go along with what he called a “raid” on the pension funds.

Will Seek Another Vote

Later, Keene attacked Republicans for “placing party loyalty above the public good.” Keene, who said he plans to ask for another override vote, said, “The war isn’t over.”

Sen. Marian Bergeson (R-Newport Beach), one of the Republican lawmakers who earlier voted for the school aid package, said she is convinced that even though revenues are up, unexpected expenditures in health and welfare programs will eat up much of the gain. She noted that Deukmejian had retreated somewhat from his earlier position, saying he would use $25 million in oil tax revenues if the Legislature made up the balance from the pension fund.

“He has offered a compromise,” she said, adding that Republicans would continue to push for a solution to the school funding problem.