CFA GOVERNMENTAL RELATIONS OFFICE WEEKLY REPORT
"LEGISLATURE NO CLOSER TO REACHING A BUDGET AGREEMENT"
2002 EDITION - Issue No. 18
June 28, 2002

CONTENTS:


LEGISLATURE NO CLOSER TO REACHING A BUDGET AGREEMENT

A Democratic proposal to increase taxes by $4.8 billion to help
close the state's $23.6 billion shortfall failed in both houses
of the Legislature this week. The proposal included an increase
in the tax rate for high wage earners from 9.3 to 10 percent -- a
tax level that has been in place for most of the past 25 years.
If the bill had passed, the net tax for an individual earning
$200,000/year in taxable income would have increased by only
$318.  For a married couple with a joint income of $1.5
million/year, the bill's passage would have caused an $11,346 tax
increase.

Additionally, by a 48-29 vote along party lines, the Assembly
failed to approve a budget bill (SB 1830, Peace-D) that would
carry over $1.7 billion in unspent 2001-02 Prop. 98 funds to the
2002-03 budget year. Although the legislation was approved
unanimously by the state Senate, Assembly Republicans are
demanding that $400 million be set aside to "equalize" K-12
district funding allocations prior to their support of the bill.
Democrats are arguing the equalization issue should be dealt with
in the overall budget discussions, and are frustrated the issue
was never brought up as a priority during 2002-03 budget
deliberations. If the budget bill is not approved by Sunday the
state will need to make additional cuts -- or institute higher
taxes -- to compensate for the additional $1.7 billion shortfall
in next year's budget.

Senator Steve Peace, who is chairing the Joint Budget Conference
Committee that is working to develop a budget that can attain the
required two-thirds vote from both houses, reconvened the
Committee this week.  The legislative deadline to approve a
budget plan was June 15th.


AB 2549 CLEARS ANOTHER HURDLE

AB 2549 (Nation) passed out of the Senate Committee on Public
Employment & Retirement on Monday by a 3 - 2 vote.  Under AB 2549
part-time faculty who teach six weighted teaching units for two
consecutive semesters or three consecutive quarters would qualify
for retirement benefits through membership in CalPERS, subject to
the collective bargaining process.  George Diehr, Chair of CFA's
Contract Development/Bargaining Strategy Committee, testified on
behalf of CFA at the hearing. The bill now awaits a hearing
before the Senate Appropriations Committee.



REGIONAL HEARINGS ON MASTER PLAN WIND DOWN

The regional hearings on the draft of the K-University Education
Master Plan culminated with a flurry of activity this week.  Six
regional hearings were scheduled this week and CFA had
representatives at five of the six events.  We would like to
specifically thank Kris Kouri (Northridge), David Bradfield
(Dominquez Hills), Victor Garlin (Sonoma), Craig Flannery (Los
Angeles), and Margaret Costa (Long Beach) for their participation
in the regional hearings.

On July 2nd, Eloise McQuown, Chair of the CFA Legislative
Committee, will testify at the State Capitol during the hearing
on general comments regarding the master plan.

To review the draft master plan, just log onto
www.sen.ca.gov/masterplan.


SAN FRANCISCO, HUMBOLDT AND HAYWARD CHAPTERS LEAD DIEHR
FUNDRAISING DRIVE

Chapter fundraising for the George Diehr campaign is running at
full speed.  George, Chair of CFA's CD/BS Committee and Chapter
President at San Marcos, is running for the state active seat on
the CalPERS Board of Administration.  The election is currently
scheduled to be conducted by mail ballot between October 1 and
November 25, 2002.

Each chapter was asked to raise at least $500 from their
membership.  San Francisco, Humboldt and Hayward are leading the
way by collecting over 50% of their goal, with seven other
chapters close behind meeting nearly half of the goal.  In total,
CFA has collected nearly $3,600 to help elect George.

It's not too late to send in your checks!  Checks should be made
payable to "George Diehr for CalPERS Board" and mailed to the
Government Relations Office at 400 CAPITOL MALL, SUITE 1950,
SACRAMENTO, CA 95814.

Thanks again to all of you who have made this fundraising a priority.

ONWARD TO VICTORY!

Fundraising by Chapter:

  Chapter            Total Raised           % of Goal

San Francisco            $400                  80%
Humboldt                 $324                  65%
Hayward                  $290                  58%
Dominguez Hills          $245                  49%
Pomona                   $240                  48%
San Jose                 $225                  45%
Long Beach               $225                  45%
San Diego                $220                  44%
San Bernardino           $215                  43%
Northridge               $210                  42%
Los Angeles              $120                  24%
San Marcos               $110                  22%
Stanislaus               $100                  20%
Sonoma                   $ 75                  15%
San Luis Obispo          $ 50                  10%
Chico                    $ 30                   6%
Fullerton                $ 30                   6%
Fresno                   $ 30                   6%
Monterey Bay             $ 25                   5%

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