Governor Seeks to Reopen Budget Talks, End Impasse

Gov. George Deukmejian, who held his last face-to-face meeting with embattled legislative leaders two weeks ago, said Monday he wants to reopen negotiations in an effort to end the political impasse that has left the state without a budget since July 1.

The Republican governor, for the first time, conceded in a statement that his own budget plan--which calls for $3.6 billion in spending cuts--appears to be going nowhere in the Legislature. It is an important concession because it means Deukmejian may be ready to negotiate a compromise that will involve Democrat-backed tax or fee increases to offset some of the budget cuts favored by the governor.

Controller Gray Davis has warned that the state does not have the authority to pay its bills until a new budget for the 1990-91 fiscal year is enacted. The state now is under a series of court orders to make payments to welfare recipients, doctors, hospitals and others whose payments have been held up because of the budget stalemate. However, thousands of other state employees have gone without paychecks for a week and state officials say they have no authority to pay such recurring operating expenses as utility bills and gasoline for state vehicles.

Deukmejian called the delay in passing the budget inexcusable. He said the impasse “threatens the fiscal reputation of our state” and has “disrupted the lives of millions of Californians who work for the state or depend on it for services.”

“Further delays run the risk of even more serious consequences, such as disruptions in our ability to fight forest fires, protect motorists on our highways, and guard violent criminals inside our state prisons,” Deukmejian said in a statement released by his office.

The governor said he wants the meeting with Republican and Democratic leaders to take place in his office today. The last meeting Deukmejian held with the top lawmakers was July 10. When he stepped away from the talks, Deukmejian said he thought legislators might be more successful putting together a budget plan by themselves. Although the Senate agreed on a $55-billion-plus budget, efforts hit a political brick wall in the Assembly.

“I have concluded that it is necessary to reconvene the legislative leadership to resolve this impasse,” Deukmejian said.

One high-ranking Democratic legislative source, who asked not to be named, said of Deukmejian’s statement: “Reading between the lines, it sounds like he is laying the groundwork for saying that he is Mr. Super Responsible and is willing to make some concessions.”

The governor’s call for renewed negotiations came as Democrats in the Assembly prepared for a showdown over Deukmejian’s original budget plan. After Republicans blocked a budget and tax plan drafted by Assembly Democrats last Thursday, the majority party lawmakers Monday amended the governor’s budget proposal into another spending bill, saying they wanted to vote on the package today. Even though Democrats are pressing for a vote on the governor’s budget, majority leaders say they will vote against it and hope the lack of support will force Deukmejian to make concessions.

Hours before the governor announced a softening of his position, Assembly Speaker Willie Brown (D-San Francisco) criticized Deukmejian for not exerting enough leadership. Brown said that for every day the impasse continues the governor should try a new budget plan. “But so far, we have had a governor who has just said, ‘I want my original version and nothing else,’ ” Brown said.

Deukmejian did not say exactly how much he is prepared to give--or even that he was willing to make concessions. But the tone of the statement, and comments from Michael R. Frost, his chief of staff, indicated that Deukmejian is willing to bargain.

“He believes that with his plan not moving and with the Legislature unable to come up with a plan of its own, something has to give. He hopes that by bringing everyone together again he can find some common ground,” Frost said.

Asked if that meant Deukmejian was willing to back away from his stance in favor of more than $3 billion in budget cuts and embrace some of the tax and fee proposals sought by Democrats, Frost said the governor would not discuss specifics before meeting with the Assembly and Senate leaders. “All the governor intends to say in the statement is that whatever has happened up until now has not worked,” Frost said.

Senate leader David A. Roberti (D-Los Angeles) said Deukmejian’s call for a meeting took him by surprise because only last Friday he was told by the governor’s staff that no such conference was contemplated. “I’m hopeful for movement,” Roberti said. “I have been ready and willing for the last two weeks to meet with the governor.”