Controller Chiang on the Budget

I just chatted a bit with John Chiang about the ongoing budget stalemate. He was unaware that Gov. Schwarzenegger remarked yesterday to the SacBee that he would be fine with a budget in November or December. Chiang's reaction was that it would cost the state hundreds of millions of taxpayer dollars to wait that long. Basically, there are two types of borrowing systems - one that assumes an imminent budget, with a discount rate, and one that does not, which has the normal rate. If we keep delaying the budget, we will be funneling hundreds of millions of dollars to the financial services industry, and in the words of Chiang, "put Wall Street above Main Street."

This is another aspect of the Yacht Party's holding hostage of the budget process - enriching a key constituency.

On the coming lawsuit over the slashing of state employee pay to the minimum wage, the hearing is scheduled for September 12. Chiang has asked for the case to be moved to federal court, which would delay it a couple months, but the main reason is because California would have no immunity if the state upholds the wage cut, and the federal courts overturn it.

About speaking at the convention yesterday, Chiang felt pretty good about it, and he offered a little secret that may explain why a lot of people are speaking over their applause lines. Apparently the speakers get a very strict set of time at the podium. After they go over, they start beeping and flashing lights at the podium speaker to get them to wrap up.