Thread by @johnmyers

With no indication yet of whether #CABudget deadline day ends with a deal or a pro forma vote and ongoing talks between Newsom and legislative Dems, there's this thorny issue: the budget bill to be voted on today assumes a gubernatorial action that hasn't happened. (Thread)

The main #CABudget bill, #SB74, relies on the use of cash reserves from the state's "rainy day" fund. But under the provisions of Proposition 2 (2014), those funds can't be used without a gubernatorial declaration of a budget emergency. But... wait for it...

There's been no such emergency declared by Newsom.

An agreement on a budget plan could easily include such a proclamation. But suppose there's no deal today?

While #Prop25 only required a budget bill to be passed by midnight, this is the first time #Prop 2 cash is being used.

It stands to reason that if the #Prop2 money relied on in today's #SB74 can't be spent because there's no gubernatorial emergency declaration, then the budget bill isn't balanced -- again, a thin but existing mandate in the CA Constitution.

So... would Newsom need to veto?

Certainly no one expected a full #CABudget agreement to not be in hand by 6/15, thus no real reason to assume there would be a hiccup in using cash reserves.

But the need for a declaration from Newsom sure does seem like it offer him some leverage in hammering out a deal. -30-