When voters reject the ill-conceived ballot measures in a couple of weeks, there will be an immediate need to work through yet another massive overspending-created budget shortfall of close to $15 billion (give or take).
First and foremost, the rejection of the measures by the voters should be seen as a rejection of the idea that in a recession, taxpayers should be forced to pay more.
Beyond that, I believe it should be seen as a rejection of the “Big 5” system of budget negotiations that delegates to a small number of people all of the responsibility to come up with a budget solution. On top of it, Big 5 clearly ends up being focused on wheeling and dealing, and literal back-room politics.
I will let others give advice to Democrats, but I would strongly counsel Senate and Assembly Republicans to reject the “Big 5” budget process as a failure, and offer to facilitate public meetings with their selected budget team (note that I suggest that each Caucus be represented by a group of conferees).
Frankly, the budget committee process would be useful and helpful as a vehicle for ongoing dialogue and decision making — IF (and it is a big IF) Democrats amend the rules so that the budget committee (and subcommittees) operate under the same 2/3 vote requirement as the budget vote takes to pass each legislative chamber.
Finally, no solution to the state's woes will work if it doesn't include the long-term reforms needed to keep us from experiencing “Groundhog Day” over and over. For starters that includes eliminating any parts of state spending that “automatically increase” from year to year without specific authorization annually (yes, I think this will require a ballot measure). Also, defined benefit pensions for state employees need to stop (understanding that you can't do that retroactively). Going forward it should all be defined contribution benefits like 401k plans.