IN JULY I REPORTED how the last-minute impasse staged by Senate Republicans to derail stopgap measures already approved by the Assembly added $7 billion to the state's deficit.

Now it has been widely reported that the recalcitrant "Just Say No" crowd, including our own State Sen. Tony Strickland has just added to the pain our cities will feel as the state takes $2 billion in property tax revenues away from local governments  to balance its own budget. These gaps will leave cities scrambling to plug holes they thought they had already filled in their own budget-balancing woes this year.

While the state is obligated to pay the money back in 2013 through provisions in 2004's Prop. 1A, most local officials I talk to don't really believe it will happen. 

So cities and counties were counting on Senate Bill 67 to pass in the whirlwind of the last legislative session which ended Sept. 11. This was "cleanup" legislation which would allow a consortium made up of the League of California Cities and the California State Association of Counties to accept the state's IOUs for the borrowed property tax and issues bonds to local governments to make up for the loss.

But this legislation, along with other bills which required a 2/3 passage, got hung up in a political snit over several unrelated matters, including a vote sought by Republicans on behalf of Intuit, the makers of Turbo Tax, to deny tax preparation services to low-income people through a program called ReadyReturn. The Santa Rosa Press Democrat and the Los Angeles Times took Strickland to task for his part in this scheme. Strickland has accepted $1 million in campaign cash from Intuit, the Times pointed out. And this OpEd piece points out just how wrong Intuit is in pursuing this matter.

Also lost in this power play by the No Crowd was money for battered women's shelters, federal money for swine flu preparations and a bill allowing the state to renegotiate letters of credit with banks, saving the state about $850 million this year.

Sen. Abel Maldonado, R-Santa Maria, was the only one to break from his party and vote for the measures. "At the end of the day we were sent to Sacramento to govern, not play politics," he told the Lompoc Record.

BY THE WAY: If you are looking for more Republican non-responsiveness, look no further than Mike Stoker, Tony Strickland's aide and big-time polluter Greka Energy's spokesperson, who is running for the 35th Assembly District seat along with Susan Jordan and Das Williams. I watched him in action at a forum put together at a Gold Coast Hispanic Chamber of Commerce breakfast last week by The Paladin Principle, Republican Assembly District 37 candidate Jeff Gorell's firm. The press was of course alerted to this breakfast forum, attended by 18 people. 

Stoker's idea of debating is apparently interrupting and shouting over his opponent's voice. He isn't much of a listener.

AT JUST A FEW MINUTES before midnight last night in one of the most critical state budget votes in history, Sen. Dave Cox (R-Fair Oaks) just couldn't contain himself. He needed to poke fun at President Pro Tem Darrell Steinberg's admonition to all senators to sit down before voting on three stopgap measures designed to keep our state from running out of money.

"I'm just checking, Mr. President. I'm not trying to be a pain in the butt," he joked.

And then came the 25-14 party-line vote, with Sen. Abel Maldonado (R-Santa Maria)  abstaining, which turned down three stopgap bills passed by the Assembly last week, which would effectively keep the state from issuing IOUs to contractors, the disabled, elderly and the poor. Passage of these bills, containing $3.3 billion in cuts, mostly to education, needed to happen before the end of the fiscal year that ended Tuesday. As the cuts were allocated to the previous fiscal year, the opportunity to save was lost at midnight. According to the Los Angeles Times, issuing IOUs will cost the state another $3.4 billion in interest.

The moment of levity at a time of fiscal calamity irked Sen. Mark Leno (D-San Francisco)  "We're about to lose $7 billion in 6 minutes. ... Folks are joking and it's really just beyond belief."

Later, Assemblymember Sam Blakeslee (R-San Luis Obispo), who helped seal the bipartisan deal in the Assembly  told John Myers of KQED-Radio that he was disappointed in the outcome in the Senate. "The Assembly acted responsibly..."

ON A SIDE NOTE: The governor of course vetoed the two budget bills presented to him yesterday. (See below) No surprise.

A QUICK UPDATE: The record-setting 45-and-a-half-hour death match between our State Senators is over and they agreed on a $41-billion package of spending cuts and revenue measures. Yet ... there is still work to be done. Seven ballot measures will soon be in the hands of voters.

Sen. Abel Maldonado provided the swing vote, invoking the name of Ronald Reagan, of course. (Reagan raised taxes as governor). Maldonado claimed he was defending California from his fellow Republicans. But he got his open primary on the ballot in 2010 and managed to insert a dig at State Controller John Chiang in the budget, too.

The proposed additional gas tax is gone, replaced with cuts and offset by federal stimulus dollars.

Gov. Arnold Schwarzenegger signed the budget on Friday, but not before whacking 10 percent from the budgets of the attorney general, treasurer, secretary of state, insurance commisioner, superintendent of public instruction, controller, and Board of Equalization. Lt. Gov. John Garamendi's budget took the biggest hit, going from $2.78 million to $1.04 million, which will force him to lay off staff. The Department of Corrections also got hit with a last-minute cut of $400 million.

It was not an ideal budget for anyone. It provided $700 million in corporate tax cuts yet took away $8.6 billion from our schools. Sound suggestions by our Legislative Analyst's Office to cut special-interest tax breaks were ignored. Other suggestions, such as those by the Consumer Federation of California were abandoned.

"This has been a long, painful journey," Assembly Speaker Karen Bass said.