Democrats Have Something Governor Wants -- a Budget

Democratic legislators have Gov. Arnold Schwarzenegger right where they need him: He’s poised for victory, itching to brag. Only they stand in his way.

It’s a rare moment these days when Democrats hold the leverage.

True, mine may be a minority view. Schwarzenegger generally is seen as an unstoppable colossus.

But think about it: The “action, action” governor badly wants an on-time budget enacted by the July 1 start of the new fiscal year. On the other side, Democrats want to soften his budget blows to university students and the low-income aged, blind and disabled. Also, welfare moms and -- less compelling -- state workers.

Many Democrats, in addition, are resisting Schwarzenegger’s budget pact with local governments that would lock in a flawed financing system for cities. By relying on sales rather than property taxes, cities have been chasing residential housing far into the suburbs and replacing it with big boxes and auto malls.

So what are the governor’s top priorities in all this? Listen to his words. They’re all about process and punctuality, not policy -- with one exception. Weeks ago, he drew a line against tax increases. And promptly won. Democrats quickly surrendered, denying Republicans an election-year issue.

Having triumphed on taxes, Schwarzenegger now covets a chance to crow about bringing the Legislature to heel -- or, more genially, to the bargaining table -- for an uncommon, on-time budget. It’s about shaking up Sacramento, as he promised. Changing the atmosphere.

“We cannot afford to go back to the old ways of dealing with the budget,” he told a rally last week in Chico. “The summer slam fest has to stop. The partisan warfare has to stop. And the special-interest giveaways have to stop.”

Never mind that it was Schwarzenegger who cut budget deals with certain interest groups -- teacher unions, university administrators, local governments -- while bypassing lawmakers. That’s fine if those agreements allow wiggle room to be altered by the Legislature, which ultimately must accept them as part of the budget.

But Schwarzenegger has been sending mixed signals on this. “Everything is open for discussions,” he told a Capitol news conference last week, adding: “The thing is, I made certain agreements.... All of those kinds of things will stick. I will stay by those kinds of agreements. But, you know, I want to hear [legislators’] point of view.”

Still, his main pitch: “The deadline is here and the time is now.... The people have elected us to do our job and to do it on time.”

That’s an argument I’ve made for years, accusing legislators of playing fiddle-faddle and ranting rubbish. Posturing and vacillating. But there are worse sins than missing a deadline, especially one that has more symbolic than legal significance.

There’s the sin of passing a $103-billion budget that denies many thousands of qualified high school graduates admission to the University of California and state universities. That’s part of the student sellout deal university heads cut with Schwarzenegger. But it’s unprecedented in California, which historically has prospered economically by providing quality, affordable education to anyone with grades and ambition.

“If the governor doesn’t want to raise taxes, we will work around that, but not like this,” says Assembly Speaker Fabian Nunez (D-Los Angeles). “This is just very vicious.

“I’ve told the governor this is my No. 1 priority. It’s about access and opportunity.”

There’s also the sin of cutting pay--from an average $8.50 per hour to the minimum wage of $6.75 -- and eliminating healthcare for in-home service providers who help the low-income aged, blind and disabled. Paring pay and whacking healthcare will make it tougher to find qualified help, advocates for the recipients argue, forcing many into costly nursing homes and running up state costs even higher.

Schwarzenegger also is proposing to scrub cost-of-living increases for the aged, blind, disabled and welfare moms.

Deflecting these budget blows is the top priority of Senate leader John Burton (D-San Francisco).

There are signs that the governor is retreating from his university and caregiver cutbacks.

He also seems open to be amending his deal with local governments to keep the door open for future financing reforms. “This issue doesn’t register on the political interest scale,” says Assembly Budget Committee Chairman Darrell Steinberg (D-Sacramento), a policy wonk, “but what we do in the next few days will have ramifications for the next 20 years.”

The political ramifications of the budget are simple: If it’s passed on time, Schwarzenegger will earn bragging rights and another big boost. If it’s not, Democrats already have taken that pounding, often and hard. So what’s another slightly tardy budget?

On this budget, Democrats have Schwarzenegger’s number. It’s July 1.

If the governor wants an on-time budget, make him pay for it. Pay the college kids, the low-income aged, the disabled and the welfare moms.

*

George Skelton writes Monday and Thursday. Reach him at george.skelton@latimes.com.