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Current DateTime: 05:11:20 01 Dec 2009
LinksList Documentid: 31388230
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Current DateTime: 05:11:23 01 Dec 2009
LinksList Documentid: 31388237
Expiration DateTime: 12/1/2009 5:12:17 AM
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Feb.19
3:55 PM ET
Thursday, 19 Feb 2009
The Saga Of The "West Coast John Thain," Part Two
Posted By:Jane Wells
Sectors:Media

John Chiang
Source: sco.ca.gov
John Chiang

One of the little reported details in the horse trading that went on to pass a California budget overnight involved office furniture.

Republican State Senator Abel Maldonado, heavily courted to provide the third and final GOP vote necessary to push through a budget, demanded several concessions, including the suspension of funding for new office furniture for State Controller John Chiang, a Democrat. I blogged about Maldonado's outrage earlier this month, when he provided invoices showing the Controller was spending millions of dollars to upgrade cubicles. The Controller shot back that he'd actually cut the original furniture budget, which was approved before he took office. Chiang also said the new furniture is needed for safety reasons.

Still, despite Chiang's anger at being essentially accused of emulating former Merrill Lynch [BAC  Loading...      ()   ] CEO John Thain, the Controller offered to skip the final $1 million payment for furniture if it would bring in the necessary votes to pass a budget.

In a letter dated Feb. 4th, Chiang warned foregoing the last payment "is fiscally irresponsible in the long run," but he would do it "to keep the State from plunging over the fiscal cliff." State Senator Maldonado insisted on the cut, and last night the Governor and legislative leaders relented. Now, the Controller will have to do without.

His office isn't happy.

It released a statement saying, "Although it may save the state $996,000 this year, it will cost the State $1.35 million a year for the next six years, as we will be forced to pay rent on two places." That's because the Controller will have to pay rent on a new, second office space he no longer has the money to completely furnish, meaning some workers will have to stay in the old office, with the old cubicles.

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