Governor’s May Revise

Thursday May 15, 2008
“Gov. Arnold Schwarzenegger attempted to forge a path out of the state’s financial mess Wednesday by offering concessions to both Democrats, who are demanding that schools and other services not be cut, and Republicans disdainful of new taxes,” writes Evan Halper and Patrick McGreevy in the Times.

“Both sides immediately declared that they wanted little to do with the governor’s budget proposal, suggesting that Sacramento is in for another long, unproductive summer.

“The $144.4-billion spending plan would restore $1.8 billion for schools while making deep cuts in welfare and healthcare for the infirm, legal immigrants and impoverished parents.”
 
We like to call those the “non-voters.”

“It would steer an $828-million windfall of gas tax revenue — the result of soaring prices at the pump — away from public transportation programs and into patching California’s $15.2-billion budget gap.

“The challenge that the governor and lawmakers face is daunting. The state has dropped $6 billion further into the red since January, when California was already struggling financially.

“The centerpiece of Schwarzenegger’s budget is a novel plan to ask voters for permission to borrow $15 billion from Wall Street against future earnings of the state lottery, and to temporarily raise the state portion of sales taxes — now 6.25% — by 1 percentage point if voters reject the proposal in November.

“As the deficit grew these past few months, I knew that we could not solve this crisis by cuts alone,” the governor said in presenting his proposals. ‘We had to get creative.’
 
“But state Senate leader Don Perata (D-Oakland) called the revised budget ‘beneath a governor of this great state. It’s telling our citizens: This is it. Our best years are behind us.’”

Fighting Against the Governator’s Budget

About 100 parents, mostly mothers, gathered near the Los Angeles County Museum of Art this morning to protest potential cuts to education funding.

Gov. Arnold Schwarzenegger’s proposed budget contains about $4.8 billion in education cuts this year and next, and school districts throughout the state have issued preliminary layoff notices to employees, cut programs and closed schools to prepare for the shortfall.

Fiscal Crisis in Cali

With an estimated 14 billion dollar state budget deficit, Californians are worried about their future. Seven in 10 residents say California is in a recession and three in four expect the state to have bad economic times during the next 12 months. This comes at the height of a housing crisis, a record high unemployment rate, and major spending cuts in social services. Moreover, nearly half of likely voters say they prefer to deal with the budget gap through a mix of spending cuts and tax increases. Solid majorities say major changes are needed in the state’s budget process. However, the Governator has proposed major budget cuts to all state departments except the department of corrections and the department of business. The future of California is grim, as the youth are predominantly of color and low-income, meaning they are at the heart of the cuts to education, health services, and more. Please contact your State legislators today and voice your opinion! To find your elected official click here.