Zero-dollar deficit likely

With state senators set to meet Wednesday evening to hammer out a budget deal, Huntington Beach Sen. Tom Harman expected the final product to meet Republicans’ goal of a zero-dollar operating deficit.

When the Assembly approved a budget with a $700 million deficit, GOP senators rebelled and created their own budget that sliced $842 million from a welfare program, public transportation and other areas.

Harman said earlier Wednesday whatever senators approve probably will go straight to the governor, who may change where cuts come from but is expected to stick to a zero deficit.

“The governor has indicated that he has the power to blue-pencil, or veto, line items and he has indicated to both sides that he’s going to do that,” Harman said. “Both sides are more or less relying on the governor to make those cuts…. Will they be the same cuts [as Republicans made]? No, they won’t.”

Funding for Calworks, the welfare program that Republicans wanted to cut by $300 million, probably will be restored, Harman said.

Republicans wanted some other concessions, such as changes to language on state infrastructure bonds and environmental law reforms, but whether they’ll get those is unclear.

“We’ve received assurances that those things will happen, but we’re in an atmosphere where one side sort of doesn’t trust the other,” Harman said.

While the budget impasse means the government has stopped cutting checks to contractors and schools, at least the Huntington Beach Union High School District won’t be affected by the stoppage right now, board Trustee Brian Garland said.

“Sometimes they don’t pass that state budget till the end of September,” he said. “Sometimes they go even into October. The funds for the current running of the programs are already in the tubes, so to speak.”

But Ocean View School District Interim Supt. Ed Sussman said the lack of a budget meant his district can’t plan its own finances properly.

“The longer it goes on, the worse it is for us,” he said. “We’re not sure what the money’s going to be. We’re not able to really prepare and plan for the school year. If there’s a disagreement or there are problems politically, school districts should not be held hostage.”