Last week Senator Jeff Denham presented a bill, AB 207, in the Senate, for the purpose of a special appropriation.

The purpose was to have the State continue to pay the costs of health care, as well as vendors--people who have provided products or services to the State. Unfortunately the Democrats in the Assembly and the Senate said NO. Democrats did not, and do not, want to pay legitimate bills.

They demand that taxes and spending be raised--if not, they are holding their breath and harming the people of the State.

Late this afternoon, the Governor released a statement--in support of the Democrat position--he, too, wants tax increases, or no budget.

Here are his words:

Gov. Schwarzenegger Sends Letter to Legislative Leaders, Responds to Senator Perata on Continuing Appropriations

Governor Arnold Schwarzenegger today sent the following letter to legislative leaders:

September 2, 2008

Dear Speaker Bass, Senator Perata, Mr. Villines and Senator Cogdill,

It is irresponsible not to have a budget more than two months into the fiscal year and 80 days past the legislative deadline. California is now headed into unknown territory, but what we do know is that some state checks will not be cut and that state services will be impacted.

We cannot afford a temporary fix. Legislators should not be devising band-aid solutions like continuing appropriations. What legislators should be focused on is passing a budget - the best way to ensure that state payments are made.

This delay in the Legislature could cost California more than a billion dollars, because we are losing another month of budget solutions included in the compromise budget I proposed. Assembly Bill 207 would require the state to take out a short-term loan that would cost hundreds of millions of dollars - maybe more than a half-billion - and would dig our budget hole that much deeper and make our cash situation that much worse.

The best way forward is to vote on and approve the compromise budget I proposed two weeks ago.

Sincerely,
Arnold Schwarzenegger

Senator Jeff Denham immediately issued a statement.

Here is his comments:

Denham Responds to the Governor's Letter of Opposition to AB 207

Sacramento - Senator Jeff Denham (R-Merced) responded today with the following statement to the Governor's letter of opposition to AB 207:

"AB 207 is not a 'Band-Aid' approach. It would fund life-saving medical treatments and other vital services to thousands of California's most vulnerable.

"Senate Democrats and the Administration know the budget system is broken. They waited over two months to present a real budget proposal and continue to hold the state hostage.

"AB 207 could be amended to at least allow federal funds to be released to those in need.

"People's lives are at risk. We need to put partisanship aside on this issue and fund these vital services now."

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What do you think, should the State pay its bills or should we be held hostage to those who demand tax increases? We have grown the State budget by 44% in five years, that is why Sacramento does not need more money.