Legislature Looks to Reassert Its Power in Budget Negotiations

At a State Senate hearing Monday, lawmakers seemed ready to reassert themselves as budget negotiations get underway with Gov. Gavin Newsom.

In mid-March, before recessing due to COVID-19, the Legislature gave Newsom broad authority to spend more than $1 billion responding to the pandemic.

In his recent May budget revision, Newsom is asking for similar leeway on nearly $3 billion for future coronavirus expenses. He would have to give lawmakers 72-hours notice before spending any money, but wouldn't need their approval.

At the hearing, Senate Budget Committee Chair Holly Mitchell, D-Los Angeles, seemed skeptical Newsom needed this additional power when speaking with his budget representative.

“You’re suggesting that the administration feels that, even with the Legislature back in session, that you still need broad authority, with 72-hour notice, in terms of your ability to spend almost three times the amount that we approved March 16?” she asked, somewhat incredulously.

Vivek Viswanathan, chief deputy director for budget at the state's Department of Finance, said it’s important the governor be able to act quickly.

"We do think that it is important in case we see, whether it's an upsurge in COVID 19 cases again, or a need to stand up hospital capacity if there is a second wave," he said, "or some other type of related emergency related to the pandemic."

Newsom's administration has faced scrutiny over several contracts it quickly entered into for personal protective equipment in the early days of the pandemic. Three separate deals were either delayed, not completely fulfilled or, in one case, canceled after the state was alerted it was likely a scam. Newsom's team maintains they had to act fast in a hugely competitive marketplace. They stress no money was actually lost. But it raised questions about the Legislature's responsibility for oversight and whether it needed to be more engaged than it was.

The nonpartisan Legislative Analyst's Office — which as the name implies works for the Legislature — has cautioned lawmakers about giving up too much control to the governor. In a review of Newsom's May budget revision, the LAO urged "the Legislature to jealously guard its constitutional role and authority."

That may be just what is happening now.