It's an annual rite. As the start of the fiscal year nears, the state controller sends out a statement warning what will happen if lawmakers don't agree on a budget by July 1. This year's statement, from Controller John Chiang, came today:

“As the State’s chief fiscal officer, I have the authority to pay for some essential services in the absence of a budget,” Chiang said. “But without a signed budget in place, I am legally prohibited from making necessary payments to school special education programs, community colleges, local governments, and vendors doing business with the State.”

Specifically, if there's no budget in July Chiang said he could not pay school districts for categorical programs, such as special education and summer school; community colleges and local governments. State vendors would also not be paid for services provided after July 1. And state elected officials and their staff could not collect salaries and per diem checks.

Most Capitol observers expect a prolonged budget fight this year as lawmakers struggle to close a $15.2 billion deficit for the fiscal year that begins Tuesday.

But Assembly GOP leader Mike Villines of Clovis told me the other day that Democrats and Republicans might reach an accord quicker than most people think. He expects leaders to be able to quickly agree on getting the deficit to about $4 billion -- and then the real fight will start. He said the four legislative leaders are scheduled to meet on Sunday.

Republicans are digging their heels in against tax increases, while Democrats have said tax hikes may be the only way to preserve essential state services.

What I'm wondering is how many people out there follow state budget talks. If you do, what do you care about in particular? Send me an email at eschultz@fresnobee.com

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