Talk of the state budget crisis permeated the Metro Chamber’s State Legislative Summit on Wednesday.

In meetings with legislative staff on 39 regional issues, a typical comment to state officials was “We have stepped up to the plate—please help us out,” as regional entities asked for promised state matching funds that are being held up by the budget shortfall.

But in remarks during lunch to the summit participants, Sen. Denise Ducheny and Sen. Abel Maldonado indicated that massive, broad cuts in spending were on the way. Below are some of the points the senators made…

Sen. Ducheny, D-San Diego:

• The citizens of the state largely don’t understand what the state government does or where their tax dollars go.

• Over the last few years, the state has let people believe that all things are possible as far as money goes by papering over spending with gimmicks because business grew and thus revenues grew. That ended this year.

•The passage of the property tax relief measure Prop. 13 in 1978 created a cascade of other ballot initiatives over the next two decades that boxed up state revenues in spending in specific areas.

• Cutting the vehicle license fee directly reduced revenues to city and county police and fire services. “Everyone wanted to cut it; no one acknowledged what it paid for was local police and firefighters.”

• The state government is actually only run on 10 percent of the state budget—at least half goes to other elected entities to spend and the rest is constitutional mandates.

• Revenues for this budget year are equal to those of 2004-05, yet caseload growth for prisons, in-home services and schools have all continued to rise.

• What is the impact on local economies if state parks are closed or if support for 450,000 single working mothers is cut entirely. We have to figure that out and not make matters worse.

Sen.Maldonado, R-Santa Maria:

• The budget compromise by the Legislature in February was “the best we could do under the circumstances we had."

• As a result of the May 19 election when state voters turned down tax increases, Maldonado said he has “signed on” and will not raise taxes. “I’m the octo-dad of tax increases."

• I have faith in the state when times get good the money comes in quickly—but then spending goes up. • In the next couple of days, the legislature is going to prioritize budget cuts and there are three choices available: cut, raise taxes or deficit spend.

• Although the current budget crisis presents an opportunity to put budget reforms in place so the crisis won’t repeat itself, Maldonado said he doubted the reforms would be made.

• An upcoming ballot measure for an open primary may help reform the state budget process in that open-minded, pragmatic and reasonable legislators would likely be elected. • The state capital is driven by fear—fear by elected officials of the small blocks of special-interest voters that get them elected.

Assemblyman Roger Niello, outgoing Vice Chair of the Finance Committee, also spoke to delegates at breakfast.

Among his comments:

• “We find ourselves in a true crisis situation…The budget has been the never-ending story.”

• The key problem is a “structural deficit.” “We are struggling with a disastrous economy that is widening our deficit. Even if we didn’t have the (economic) situation, we would still have a structural deficit.”

• Over an 18-month period, the budget deficit amounts to $66 billion in a $150 billion budget. “That is a serious imbalance.”

• An even more pressing concern is that by the end of July, the state will have a cash flow problem—with more going out than coming in. It will have to borrow money, but Wall Street is not looking kindly on the state’s budget situation.

• “We must move quickly because we have a cash crisis.”