$332-Million Emergency Bill Blocked

Assembly Republicans, balking at a series of unrelated expenditures, blocked passage Thursday of a bill that state officials say is needed to resume funding medical treatment for the poor and paying refunds to Californians who qualify for the renter’s tax credit.

The $332-million emergency appropriations measure was sent instead to a two-house conference committee, where Republicans will try to split it up so they can vote for programs that they want to fund and vote against payments that they oppose.

The bill had been approved in the Assembly on Monday, but that action was rescinded after GOP lawmakers complained that they hadn’t realized what they were voting on.

When they got another crack at the bill Thursday, the Republicans peeled off, with many voting against the measure and some not voting at all. Various members complained about a $16.3-million appropriation for abortions performed under the Medi-Cal program, $12.8 million to support malathion spraying against the Mediterranean fruit fly, and $798,000 to implement the state’s ban on assault weapons.

The final vote was 48 to 17, with 54 votes needed for passage.

Until the bill is passed and signed by Gov. George Deukmejian, refunds to about 150,000 taxpayers who qualify for the state renters credit will not be mailed, said Jim Reber, a spokesman for the Franchise Tax Board. Reber said the fund set aside for those refunds has been depleted and the checks cannot be sent until the Legislature allocates another $34 million.

If the bill isn’t passed by the time the fiscal year ends June 30, the checks will be funded out of the budget for the next fiscal year, which begins July 1.

“Those returns have been processed and the money will be refunded as soon as the appropriation is made to the renters credit fund,” Reber said.

The delay in passing the emergency funding bill also jeopardizes about $95 million in payments to hospitals and nursing homes serving patients in the state’s $7.5-billion Medi-Cal program. Doctors treating Medi-Cal patients have already seen their payments halted for the rest of the fiscal year because the program has run out of money.

Meanwhile, there were these developments during a two-house conference committee seeking accord on a $56-billion budget for 1990-91:

The Deukmejian Administration disclosed that the temporary quarter-cent sales tax increase enacted last year in response to the Oct. 17 Bay Area earthquake will come up $200 million short of reconstruction and relief needs. Before it expires Dec. 31, the tax is expected to raise about $800 million for temporary housing, repair to public buildings and loans to small businesses, as well as other earthquake-related costs.

Partisan fighting erupted as an Orange County flood-control project became the first sizable budget reduction. Led by Assemblyman John Vasconcellos (D-Santa Clara), Democrats on the committee voted to eliminate $32.9 million put into the budget by Deukmejian to finance the first phase of Orange County’s proposed Santa Ana River flood-control project. Vasconcellos said the money could be restored for the project with a bond, which would have to be approved by state voters. Sen. John Seymour (R-Anaheim) was livid. He argued that using bond money would create budget problems down the line.

“This is like a family who is in over its head with money troubles but goes out for one more consolidated loan so it can maintain its standard of living,” he said.