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Legislators have 30 days to fix the California budget


By Hoa Quach, SDNN

Monday, June 1, 2009 22 comments  |  read comments  |  post a comment
San Diego: Gov. Arnold Schwarzenegger, left, talks with Assembly Speaker Karen Bass, D-Los Angeles, right, before the start of his meeting with legislative leaders concerning the state budget at the Capitol in Sacramento, Calif. Facing an projected $24.3 billion budget deficit, Schwarzenegger and Democratic lawmakers are pressing the Obama administration and members of Congress for federal loan guarantees to help the state out of a desperate, mulitbillion-dollar jam. (AP Photo/Rich Pedroncelli)

Gov. Arnold Schwarzenegger, left, talks with Assembly Speaker Karen Bass, D-Los Angeles, right, before the start of his meeting with legislative leaders concerning the state budget at the Capitol in Sacramento, Calif. (AP Photo/Rich Pedroncelli)

Full budget coverage

The dreariness of June may have some Californians wishing this was simply another Hollywood drama. Unfortunately, this isn’t another gig for Gov. Arnold Schwarzenegger, and he’s not acting when making statements about budget cuts.

But state legislators are buoyant that the sunny state will devise a new budget by the year’s end and brighter days will appear immediately.

Since the propositions flopped on May 19, the Golden State governor has said he will respect the “will of the voters” but will have to bring forth the consequences surfaced from the voters’ rejection. After a week-and-a-half of budget meetings - Schwarzenegger will discuss what programs will be terminated in a joint legislature session this week.

While the governor has discussed ways to solve the deficit, the legislative level is expected to resume its budget action meetings on Monday after a series of “special” meetings. Immediately after the special election, the state’s budget committee held meetings gathering thoughts from several state offices. Included were: State Treasurer Bill Lockyer, who said the federal government is shying away from the Californian can of worms; State Controller John Chiang, who said the California was low on cash; and the Legislative Analyst Office representatives, who gave the legislators many various tips.

In addition, the committee added four members to its budget team - bringing the total to 10. This, they said, will allow for more feedback from the legislature.

“The budget process will be completed quickly to help prevent a potential cash-flow shortage in July and to reassure the federal government and private investors that California is a safe investment,” said Assembly Speaker Karen Bass (D-Los Angeles) after the elections.

Other than hearing the opinions of different financial gurus on how to solve the $24.3 billion deficit, the committee also opened up a meeting for public comment. Numerous Californians concerned with the cuts stepped forward, including a 24-year-old woman who told the committee’s members if health cuts were made, she would die.

Health care cuts

The health cuts, discussed by Schwarzenegger, include reducing funding for the state’s Medi-Cal program by at least $1 billion in the next fiscal year. It also imposes stricter eligibility requirements.

However, according to the California Budget Project, the governor’s plan, in these terms, may not be feasible because of President Obama’s American Recovery and Reinvestment Act (ARRA).

“The [state] administration would need permission from the federal government to make eligibility cuts, due to provisions in the American Recovery and Reinvestment Act of 2009,” the left-leaning think-tank’s report stated. “In the past year, the governor has proposed three eligibility changes that could cause nearly 1 million Californians to lose access to health coverage. While the Legislature previously rejected these proposals, all three could be included in the Administration’s proposed $1 billion reduction - a cut that would cause the state to lose an estimated $1.6 billion in federal funds in 2009-10 under ARRA’s enhanced matching rate of 61.59 percent.”

Other state health-care reductions include the elimination of the Healthy Families Program by Aug. 1, a move that would affect up to 942,000 children. The move would also save the state about $366 million. Other health-care cuts for low-income families could affect up to 2 million people, 1.5 of which would be children.

In addition to health cuts, the lay-offs of 5,000 state employees and a five percent salary cut for remaining employees are on the table. The five percent cut would affect state employees, who have already been forced to take two-day furloughs in February. However, state legislators and court workers will not be taking the same cut.

In his weekly radio address last Saturday, Schwarzenegger said he wouldn’t impose cuts on state legislators because it wouldn’t be effective as it would only save $14 million.

“Think about that, $14 million versus a $24 billion deficit,” Schwarzenegger said. “So you can see it’s very little.”
In addition, each legislator is considering its own cuts in its budget.

State parks and other assets

The sale and closure of state parks are also being heavily considered by the state government. Schwarzenegger proposed the closure of up to 220 state parks, among them some of the state’s most popular natural attractions that draw millions of annual visitors.

Schwarzenegger this week recommended eliminating $70 million in parks spending through June 30, 2010. An additional $143.4 million would be saved in the following fiscal year by keeping the parks closed.

“This is a worst-case scenario,” said Roy Sterns, a spokesman at the state parks department. “If we can do less than this, we will try. But under the present proposal, this is it.”

Among the parks that could be closed, the parks department said Thursday, are Lake Tahoe’s Emerald Bay, Will Rogers’ Southern California ranch and Humboldt Redwoods State Park, which boasts the world’s tallest tree, a giant that tops 370 feet. Even the governor’s mansion in Sacramento is on the list.

The legislature last year rejected the governor’s proposal to close 48 state parks. But lawmakers said that with California’s budget deficit now at $24.3 billion, the situation is so dire that it is likely some parks will close.

“Things that were previously dead on arrival are a lot more viable in a crisis like this,” said Democrat Jared Huffman, chairman of the Assembly’s parks and wildlife committee. “I think some cuts are coming to the parks, and they’ll be cuts I won’t like and the public won’t like.”

The state parks department said a $70 million cut would leave it with enough money to run just 59 of California’s 279 state parks.

The Del Mar Fairgrounds is also on the table for a possible sale. Although, state officials have not made an official statement declaring they will sell the property, Del Mar officials are keeping a close eye on it.

Del Mar Mayor Crystal Crawford, who recently announced her run for state assembly, said if a decision to sale was made the process would be very long. But, she and the city council have considered different scenarios that could play out.

The city, which may have to give the state up to $400,000 in revenue if legislators decide to suspend Proposition 1A from 2004, has already balanced their budget for next year. For now, Crawford said the city is just waiting.

“We’re holding our breath,” Crawford said. “But, we’ve told the governor and declared this would be a hardship for the city.”

Prison budget excesses

Despite the number of cuts explored this past week to save the state, a revelation also surfaced: the state’s prison receivership has spent about $500 million more than what was budgeted this fiscal year.

Uncovered by KQED’s The California Report, Receiver Clark Kelso confirmed the amount last Wednesday. According to Kelso, they went over-budget in the medical services area — having too many inmates requiring medical attention outside the prison system.

The governor has not yet addressed the $500 million figure.

Associated Press writer Samantha Young contributed to this report. Hoa Quach is the political editor. She can be reached at Politics(at)SDNN.com

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Comment by: r. rasmussen Posted: June 1, 2009, 1:10 pm

Wow! Now this governor really shows leadership and brainpower. When was the last time he actually talked to you, the regular guy? His cronies sitting around the table are part of the pretty people and they won’t be touched. After all the money difference is really chump change. Still no one is talking about gutting the dozens of regulatory boards and commissions that cost the tax payers millions, drive business out of the state and have results that can be measured on a knat’s ass with room left over.

Comment by: R.Bryson Posted: June 1, 2009, 1:26 pm

I agree, why are the legislators immune from pay cuts, they’re a major part of the problem we ALL face, I’ve had a 5% cut since Jan 1st. And I don’t see it coming back this year at all. They need to suck it up and take the pain along with the rest of us.

Comment by: Sophia Posted: June 1, 2009, 1:46 pm

You can decide what to do about the state budget using the California Budget Challenge. The nonpartisan Challenge allows you to craft your own version of the state budget-deciding what to spend and what to tax. You can then alert your legislator of the policy choices you made. It’s a great way to learn the ins and outs of the budget. Try it! http://www.next10.org/challenge

Comment by: Marie Trejo Posted: June 1, 2009, 1:56 pm

I hope that the budget he came up with is just a rough draft. Was the governor even thinking correctly when he thought about eliminating Healthy Families?? This is a program throughout the united states, not just CA. So I dont think that he can cut it. It is not his program. This great program is for children whom do not qualify for Medical and who can not afford private insurance which cost approx. $500.a month per person. Without Healthy Families these children will end up getting sick and going to the Emergency rooms because they dont have any ins. Who is going to pay those bills?? It will put CA. in a bigger hole. All of us are not as fortunate as Schwarzenegger and make thousands of $$ a month and can afford to buy private ins. for the family, drive big cars, live in fancy homes and dress in expensive clothes. People who live like this are the ones who should be taxed more instead of cutting Healthy Families, Community Mental Health Programs…. Let them take furloughs and combine some of their offices to save money. As for Cal Works yes thay should revamp that program so parents dont just sit around in their home and receive money. They should be volunteering time in these places that are getting cut. For the prisons, if they sent every one in prison who are here illegally, to their own countries to do their time and stay home when they get out that would lower the prison population.
Arnold needs a new job. He is not thinking well.We voted on these propositions already and they didnt pass and it seems like he wants to take the money any way. Did he not hear us when we said NO!!!
Arnold you need a new job.

Comment by: Lynn Posted: June 1, 2009, 3:55 pm

All city and state workers should receive the same decrease in pay (this should include the legislators and courts). For the over crowded prisons they need to start cleaning house immediately with the non-citizens by way of immediate deportation and/or transfer them to the federal penatentaries. This need to be done prior to early releases and no illegal immigrant once their time is served should be released back into the general public (this alone should make a big dent in the over crowding and the budget they just went over). They should also stop giving out hormone drugs for the transgender people only treat what is medically necessary (and continuing with your sex change while behind bars is not a necessity). Leaving prison addicted to or still addicted to drugs is dumb. Go over every open welfare case (food stamps, cash grants, general relief medi-cal, etc) with a fine tooth comb. There are people walking around with food stamp cards (who shouldn’t) that they have bought from someone or they are getting them directly from the state. They can also combine or close ineffective state agencies. If you truly want to ever have a rainy day fund you do not increase spending. Go through the budget line by line and get it done. The same things that are mentioned over and over (education, healthcare, first responders, prisons, law enforcement, welfare) cannot make up the entire budget and if it does something is terribly wrong. I also do not understand how we have to make up the difference for local and state pension funds. What ever was lost on Wall Street (billions) due to mismanagement (traditional pension plans should be in an interest/money market account that is not touched by anyone but the retiree) is just lost/gone like mine and a lot of other people (especially the ones that Madoff stiffed). It is time for this continuous safety net for local and state workers to end we cannot afford it (could never afford it). They must also retire with Medicare only and be offered maybe a discount with AARP as a secondary insurance period (we cannot maintain a traditional healthcare policy because the health insurance industry is also a rip off that is not really monitored (by neither the state or federal governments). These costly unrealistic benefits and retirement packages must end now.

Comment by: Smuckh Posted: June 1, 2009, 4:18 pm

Socialism has failed us. Stealing from the working class to pay for the losers will always fail. Stop throwing good money after bad. Cut taxes and make credit hard to get. Easy credit is the greatest evil in the world, and is the same as deficit spending by our stupid government.

Comment by: Maria Rempfer Posted: June 1, 2009, 4:35 pm

I’m amazed, and probablly shouldn’t be, that the state legislators and court workers won’t be affected by the 5% reduction to “State Workers”. When did they stop being state workers? Also, $14 million dollars is 14 million we don’t have to generate. Imagine if we were so flippant about our own home budgets and the revenue we generate as the Gov.is about the money we could be saving? Have they thought of ways to generate money instead of cutting wages to come up with needed revenues?
1)One way would be to make the state prisons work for us instead of the people’s taxes going to keep them open. The products we send to China to manufacture, could and should be sent to the prisons to manufacture. Reduce the amount of tax payer dollars it takes to keep prisoners behind bars, with nothing to do but weight train, and watch TV, and make them a productive part of the society. Rehabiliattion is about making someone care enough about what he or she is doing so that they will take pride in the work they are given and will change the person that they have become. Give them something to care about.
2)Cutting Health Care for Families who depend on this for their children is “unconscionable”. We’ve opened our borders to anyone who wants to come here and if they can’t afford health care we give it to them. If they can’t afford and education, we give it to them. We allow them to work without documentaiton and without paying into the system. We give out State Aide to just about anyone with a good story.
3)visitors spend upwards of $2Billion dollars annually buying camping gear, passes, supplies, etc. in the outlying communities. If these are closed, what happens not only to the maintenance workers who will lose their jobs, but the businesses that depend on the tourism surrounding the parks. The number of unemployed will will become staggering.
The governor and the budget team seem to see only the NOW and not TOMORROW.

Comment by: Kim Gilgenberg Posted: June 1, 2009, 5:12 pm

I urge the Governor to drop his proposal to eliminate Adult Day Health Services. This is not a money saving proposal.

Adult Day Health is not the typical “senior center.” We work with thousands of elder adults a year to maintain health, safety and independence. Our skilled nursing, occupational and physical therapy services intervene to reduce the number of ER and doctor visits, prevent disabling falls and malnutrition. We supply flu vaccinations and monitor TB to protect our clients and the community as a whole. Our social workers provide cost effective relief to the overburdened Adult Protective Services system by reducing risk factors for elder abuse, neglect and fraud. We provide a chance for family caregivers to keep their jobs so they can continue to support themselves and their families.

Reducing our services will have negative effect on California’s ecnomy. Our centers employ over hundreds of full time and part time staff members and contract with multiple local vendors,rent building space and stimulate local tax revenue.

Cutting ADHC services does not make economic sense. It means more pressure on beleaguered county services, greater local job losses, and places an unfair burden upon seniors.

Our clients have contributed their lives to building our communities and deserve to be protected in their time of need.

Thank you for your attention.

Comment by: cut Posted: June 1, 2009, 6:07 pm

CUT, CUT, CUT! I Planned and made sure I had saved enough money before having children. Why should I have to pay for other children.

Comment by: Bart Posted: June 1, 2009, 8:03 pm

People who are screaming cut, cut cut have no imagination. They can’t see all the ways these cuts are going to effect them. Try increased crime, increased emergency health care, loss of tourist revenue, cuts in local budgets, increased unemployment, increased homeless on the streets. Do you want to live in that California? Well welcome to it. It’s time people woke and faced the fact that taxes are the cost of civilization. You get what you pay for.

Comment by: Orlando Lopez Posted: June 1, 2009, 8:17 pm

The last time I checked legislators work for the people of the State of california and they are responsible for out budget mess.

Arnie should be cutting their pay as well as the rest of us state employees. I am willing to accept that but can’t swallow his lame excuse for not cutting theirs !

I am a law enforcement officer and cutting our individual department by 5% would be a lot less than the 14 million he says is too small as the reason for not cutting the legislators pay liker the rest of us !

I say recall !

Comment by: Obama is the Messiah Posted: June 1, 2009, 9:40 pm

What they should do, they won’t do. Cut all services for non-english speaking. Cut all support for illegals. I mean, duh, if they aren’t here legally, why are we paying for them ?? Why ?

So we can stay broke ?

I agree with other poster. I didn’t ask you to have those kids, don’t ask me to pay for their care…Please

call me cruel, but your way of la-la land economics is a miserable failure. But go ahead, blame it on republicans, feel good for hating them, you will still be broke and CA will still be the laughing stock of the world

Comment by: KS Posted: June 1, 2009, 11:35 pm

Why should all of us suffer for the poor decisions that have been made. What bothers me most are the inmates receiving top medical care while other innocent children and families are going to be cut. The state is so afraid of being sued by an inmate for not receiving medical attention. Why should they even have the right to sue? I believe all rights should be taken away once you are an inmate.
Why are the children suffering from the poor decisions of the leaders of California. The children are the future and deserve the best of education.
I just don’t understand the thinking of the California government. None of the layoffs or cuts seem to be made from the right areas of the general budget.

Comment by: Most popular stories on San Diego News Network Posted: June 2, 2009, 7:30 am

[...] Staff // 1. Legislators have 30 days to fix the California budget [...]

Comment by: Smuckh Posted: June 2, 2009, 8:16 am

Hi everyone!!!! I”m back!!!

Please continue to pay your taxes, on time, and also approve the Governator’s increases in taxes. I need a new County Car/Hybrid so I can impress my friends. I wish they’d let us have jets. I want one of those new Citation Mustangs!

Hasta la Vista Baby!

Comment by: BillfromCovina Posted: June 2, 2009, 11:55 pm

I have a solution. Lets cut services to the poor so that more people have to turn to crime. Lets make laws tougher, hire more prosecutors and judges. Lets hire more police and build more prisons. In LA County we can’t afford to give someone General Relief but we can afford to pay a judge over $200,000 in yearly wages. We are laying off teachers and trying to hire more police. We do not have a crime problem. The real problem is trying to maintain the police state.

Comment by: GR Clemens Posted: June 3, 2009, 1:14 pm

There is a very simple and doable solution to the crisis. Tax gas for the next year at $1.00 per gallon. People are use to paying the extra dollar and just recently too - when oil went to $145 a barrel. Do this just for a year - people will complain but reluctantly will pay (because frankly they had to do this recently anyhow - they will complain but they will pay). Then balance the budget and reduce the $1.00 for 2011. No programs are cut, the environment benefits and when the tax is rescinded in 2011 they will think the governor and legislature are heroic - is a total win/win.

Comment by: Lydia Posted: June 8, 2009, 7:16 am

To GR Clemens - Duh!
The better answer would be to take the “little guy” who seems to understand the situation much better than the current legislators and have them balance the budget. Then allow the legislators who are able to live within the cuts and are able to do the will of the people and not “their thing” (ie. no special interst packages)back into office. Replace all the rest with SERVANTS who CAN DO THE JOB!

Comment by: Malificent Page Posted: June 16, 2009, 12:24 pm

I am writing to you to ask you to take action to rescind the cuts proposed by Governor Schwarzenegger to the IHSS program. This is a critical program to so many disabled and elderly individuals in California. We are one such family. I am the single mother of 5 young children, 2 of whom have autism. I am a care provider to my 6 year old twin sons Peter and Luther whose severe autism and the dangerous behaviors that are so common with this disorder prevent them from being able to attend day care so that I might try to replace the hours that could be lost by these cuts.These proposed cuts would be financially as well as emotionally devastating to my family. We would not be able to make ends meet without this crucial program and my sons would probably have to be sent to an institution in order for me to provide for my family. Institutional care costs the state so much more than home care. I can’t even imagine the pain of being separated from my children. Our lives are already so difficult and we don’t have very many options because of the challenges autism brings to our family. My sons are only 6 years old. I am not ready to give up. These proposed cuts have the potential to ruin so many lives not only in my family, but in so many other Californian families as well .Our disabled, our elderly and our children are the citizens who need the most protection and assistance. Please take action to rescind these unconscionable proposed cuts to the IHSS program. Please help to protect the quality of life for my sons and so many other of our most vulnerable citizens.
Sincerely,
Malificent Page

Comment by: Fool’s Gold: California’s budget crisis Posted: June 19, 2009, 12:52 pm

[...] State legislators are still optimistic that a new budget will be passed by the end of June. [...]

Comment by: Vicki Medley Posted: June 30, 2009, 6:48 pm

I just heard on the news that a committee proposed that the legislators salaries be cut by 18%, as well as their car allowance and $173 per day that they receive for lunch. Who needs $173 per day for lunch and why are we the taxpayers putting up with this? Does anyone give my husband money for lunch or buy his gas? Speaking of which, all of us have to continually put up with the never ending tax increases, fare increases for transportation, and parking rate increases. We are all having to do without, tighten our belts, and give up little luxuries. When will they have to? They should be grateful they get a salary considering how poorly they have managed the budget. I say take away the car allowance and the lunch money and decrease their salary by 25% until we are back in the black. If they don’t like it, let them go pound the pavement with all of the poor guys out there who have been laid off. I’m sure there are a lot of qualified men in our golden state that could do a better job than some of those that hold office in Sacramento. Aren’t you all fed up with the free handouts?!!!?

Comment by: paul Posted: July 14, 2009, 5:32 pm

I read a article were Calif. could start a state run bank using our assets as backing and thus filling the void of banks that are not lowning to small busin. and consumers alike, this would raise hundreds of billions of dollors for calif. and fix all our state budget problems including ious

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