Chiang Halts Pay For Lawmakers

State Controller Says Math Doesn't Add Up

SACRAMENTO (CBS13) -- California lawmakers are losing their paychecks after passing a budget that just doesn't add up.

It was a simple math test and the legislature flunked. They got failing grades from Governor Jerry Brown, Treasurer Bill Lockyer and now State Controller John Chiang, who controls their paychecks.

"The budget is not balanced," Chiang told me today in a one-on-one interview in his Sacramento office.

Chiang said his decision to halt paychecks under Prop 25 was based on addition – and subtraction.

"When we checked if they crossed their T's and dotted their I's, we found that the math did not add up," Chiang said.

The budget that Democrats passed last week on a straight majority vote was out of whack because spending exceeded revenues.

"They did not complete their work," Chiang told me. He added, "There were multiple bills where there were revenue solutions that were brought in, revenues into the budget to help balance it, those bills had not been enacted."

In other words, lawmakers counted on revenues that could not be counted.

"This was simply a math examination," Chiang explained. "And there were greater expenditures than estimated revenues." Chiang added, "They had this budget done by June 15th but it was incomplete as we determined, so they are not being paid from June 16th until they come up with a balanced budget."

Chiang also noted the budget shortchanged education.

"The voters passed Proposition 98 a couple of decades ago. It provides a minimum guarantee for education funding. Under the budget that was passed they did not provide sufficient funding for education as required by the law," Chiang stated.

The bottom line is that California lawmakers won't get paid until they pass a balanced budget – saving taxpayers close to $50,000 a day in salaries and expenses, Chiang estimated.

Capitol visitors CBS 13 talked to were overjoyed – without exception.

"Who would know that it's Governor Brown who's the real Governator and not Schwarzenegger," said Seth Front, a visitor from Los Angeles.

"I'm very surprised," noted Tracy Veltenaar of San Jose. "I'm happy actually that they're finally doing something about checking the paychecks of some people. I think that's great," she added.

But lawmakers, who huddled behind closed doors much of the day, were not happy about losing their pay, which they conceded, would put more pressure on them.

"Most of the legislators by far, the majority here if not all of us we rely on that paycheck to survive so to speak," noted Senator Lou Correa. The Santa Ana Democrat told me, "We're all hard working individuals. Does this create pressure? I think so."

Governor Jerry Brown issued a statement today saying, "The Controller has made his determination. We should all work together to pass a solid budget."

The fiscal year ends June 30th, with Democrats and Republicans still miles apart on the issue of extending the higher sales tax and vehicle license fees.

As for John Chiang – he may not be popular with politicians at the Capitol – but his decision is paying political dividends on Twitter, where some people are tweeting, "Chiang for Governor."
While Chiang's decision may resonate with voters – it has also upset Democratic Party insiders, who could potentially block his path to a nomination down the road. But in the end, the Controller believes he did the right thing for the right reason.