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Democrats Discussed Extending Budget Crisis Members of the Democratic Study Group, a caucus that defines itself as progressive, were unaware that a microphone in Committee Room 127 was on as they discussed slowing progress in an attempt to increase pressure on Republicans to accept tax increases as part of a deal to resolve the state's $38-billion budget gap. The conversation was transmitted to roughly 500 "squawk boxes" around Sacramento that political staff, lobbyists and reporters use to listen in on legislative proceedings. According to Republican staff members who captured parts of the meeting on tape, Los Angeles Assemblywoman Jackie Goldberg and others discussed holding up the budget to dramatize the consequences and build support for a ballot initiative that would make it easier to raise taxes. "Since this is going to be a crisis, the crisis could be this year," Goldberg said, according to a transcript. "No one's running [for reelection]. And maybe you end up better off than you would have, and maybe you don't. But what you do is you show people that you can't get to this without a 55% vote." The ballot initiative would let the Legislature approve any tax increase with a 55% vote. The state Constitution requires a two-thirds majority. That means that under the current makeup of the Legislature, at least eight Republicans must join the slim Democratic majority for a tax increase to pass. Fabian Nunez, also of Los Angeles, agreed. "If you don't have a budget, it helps Democrats," he said. While a delay might serve the tactical advantage of Democrats, its consequences are already being felt by students, vendors and the poor: Since the new fiscal year began July 1 without a budget, the state has already begun to cut off money to some programs. Republicans noted that many caucus members have charged the GOP with holding the budget process hostage. Yet, those same Democrats are now caught on tape discussing ways to hold things up. Assembly Budget Committee Vice Chairman John Campbell (R-Irvine) said he listened to about 20 minutes of the meeting on the squawk box in his office. "It sounded like they were hoping to create a crisis at some point to further their political gains in other areas," he said. "I thought that was outrageous." Campbell said Democrats also discussed whether delaying the budget would increase the chance of a union-backed initiative that would lower the threshold for new taxes to a 55% vote of the Legislature. The state Constitution currently requires that budgets pass by at least a two-thirds majority, which today would require that a few Republicans join a united Democratic majority. Campbell said that the Democrats discussed leveraging the public's distaste for the Legislature. "They were worried that if the Legislature appeared to have dealt with the budget crisis, the initiative may not play well," he said. "This is very surprising, considering they are in charge." After about 90 minutes, a staffer interrupted to alert lawmakers that their meeting was not private at all: "Excuse me, guys, you can be heard outside," an unidentified staff member said. "Oh [expletive], [expletive]," Goldberg said. "The squawk box is on," the staff member said. "You need to turn it off right there." "How could that happen?" Goldberg said. Democrats who attended the caucus session included Patti Berg, Eureka; Judy Chu, Monterey Park; Mervyn Dymally, Compton; Loni Hancock, Berkeley; Hannah-Beth Jackson, Santa Barbara; John Laird, Santa Cruz; John Longville, Rialto; Alan Lowenthal, Long Beach; and Patricia Wiggins, Santa Rosa.
Goldberg made no apologies about her comments with regard to the timing
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