It has been a quiet weekend and day as staff work to prpeare dozens of trailer bills for floor votes, likely on Wednesday. Rumors persist that some or all of the bills may only require a majority vote for passage. The state met its constitutional deadline for a budget already and thus some argue that only trailer bills with appropriations for new or different spending will require a two-thirds vote.

Of particular interest is whether the tax provisions will require a two-thirds vote. Many of the provisions deal with who must pay taxes, not the level of taxation. Thus changes to withholding do not trigger a two-thirds vote while increases in the amount of the tax (tobacco or oil severance) will likely require a two thirds vote. If Republicans demand more concessions, aqll but a certainty, Democrats may attempt to move most or all of their package via majority vote.

The key issue appears to be the funding of the resrve. The Governor, treasurer Lockyer and Controller Chang are all asking for a $4 billion reserve. Democrats have said that a reserve of that size without new revenues would result in deeper cuts to health and human services that they oppose. Democrats may choose to send the Governor enough new revenue in majority vote bills as possible and if the wants a reserve of $4 billion he can sign the revenue bills.

Please find attached our summary of the human service actions taken by the Conference Committee.