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Gov. Arnold Schwarzenegger (center) listens to Sen. President Pro Tem John Burton, D-San Francisc

By Natalie Banach

BRUIN SENIOR STAFF

nbanach@media.ucla.edu

As politicians and their families left the capital over the weekend to celebrate the nation’s independence, the state’s budget remained on the bargaining table, unresolved.

Gov. Arnold Schwarzenegger met with legislators throughout last week with the hope of coming to a timely agreement on the budget, but local governance issues caused a rift between the two parties.

On July 1, the state’s new fiscal year began without a budget for the ninth time in 11 years. And the repetitive delays have made the passage of the budget a priority for the governor.

The main issue still waiting to be resolved regards the financing of local governments, which in particular deals with $2.6 billion in savings that can help balance next year’s budget.

In May, local officials consented to $2.6 billion in cuts over the next two years, in exchange for Schwarzenegger’s support for an amendment aimed at permanently protecting the treasuries of cities, counties and special districts.

But, the Democrats drew up an alternate plan which is designed to give the state broad new powers to allocate money to cities.

When lawmakers return to the capitol on Tuesday they will be expected to smooth over all their issues by both sides as soon as possible.

Last week, one of the poignant disagreements dealt with state universities. And while the governor and the Legislature came to an agreement over the state universities, specifics are being withheld until the whole budget is agreed on.

Concerning the state universities, many lawmakers are disappointed and angered over the fact that this is the first year that the Master Plan for Higher Education was not met.

The Master Plan was instituted in 1960 in an attempt to plan the future of California’s state universities with a specific commitment to ensuring accessibility.

“The speaker made it clear to the governor that adhering to the Master Plan for Higher Education is a priority. ... The governor is aware of that,” said Nick Velasquez, a spokesman for Assembly Speaker Fabian Nuñez, D-Los Angeles.

Furthermore, Assembly Democrats said funding to help the state universities meet the Master Plan could be found.

“Various things can be done and it’s a priority for the Speaker for all qualified students to go to college,” Velasquez said.

While lawmakers work toward finalizing a budget, members of the University of California are skeptical about the real advantages that will come to students.

The university entered into a compact with the governor in May, which stated that the universities’ budget would be cut by about $372 million in exchange for Schwarzenegger’s promise that funding would increase at the start of the 2005-06 academic year.

Due to stipulations within the May compact, “the Legislature is under no obligation to allocate money under the compact,” said George Blumenthal, vice chair of the UC Academic Senate.

Therefore, university officials say they believe that the budget delays will not have a serious affect on the UC.

“It is unlikely that any delays in enactment of the state budget will have an impact on the UC this year,” said Vice Chancellor for Finance and Budget Steve Olsen, in an e-mail.

Because the university’s procedures are more insular than state agencies the delay does not matter very much, Blumenthal also said.

“Basically, the money being discussed for the UC is what’s in the compact plus enough money to enroll Guaranteed Transfer Offer students,” Blumenthal said.

In the fall, the Democrats insisted that money go to fund Guarantee Transfer Offer students, who were previously eligible to attend a UC but were directed toward community colleges.

And while the UC may not be severely affected by the budget delays, lawmakers hope to iron out the wrinkles in the budget soon.

“Until now, he’s (Schwarzenegger) really been the cheerleader for bipartisan cooperation,” said Barbara O’Connor, director of the Institute for the Study of Politics and the Media at California State University, Sacramento.

“It’s breaking down because, occasionally, you also have to take positions that are not popular. He’s at the point now where he’s going to anger one side or the other,” O’Connor added.

With reports from wire services and Menaka Fernando, Bruin senior staff.