California Budget Crisis Diaries: Day 12 of the budget impasse
California’s elected leaders had little to celebrate at the close of business on Friday, because they had to spend their weekend at the Capitol. But a new week has begun, and legislators are confident progress has been made. Here’s a recap of what happened in Sacramento while the rest of the state’s residents were soaking in the great weather.
Schwarzenegger talks with reporters during a break in budget meetings at the Capitol on July 10, 2009. (AP Photo/Rich Pedroncelli)
Days away: The Big 5 (Gov. Arnold Schwarzenegger and party leaders) held a series of closed-door meetings during the weekend - and they now say a budget agreement may be reached as early as Friday. This is good news considering financial experts estimated last week that a balanced budget may not be reached until August or later.
Herculean reforms: Schwarzenegger - channeling his “Hercules” movie character - is demanding massive reforms. Although some of his proposals caused frustration with Assembly Speaker Karen Bass (D-San Diego), who went as far as to boycott meetings, the Governor is still proposing them. His proposed reforms include changing California’s welfare, also known as CalWorks.
“Our welfare program is based on joint responsibility,” said Schwarzenegger in his weekly radio address. “We in government give people the bootstrap but they have to pull themselves up. The only problem is that right now, nearly 80 percent of California’s recipients are not meeting simple federal work requirements but the families still receive the checks and the benefits.”
“California’s policies are actually encouraging people to stay on welfare.”
Schwarzenegger is also proposing to reform health care and in-home support systems. He said these changes could save California “millions of dollars.”
One more furlough day: Schwarzenegger has proposed that state workers be required to take a fourth furlough day. At the moment, state workers taking three furlough days, have experienced a 20 percent salary cut (this includes benefits). Experts say this possible move, which doesn’t require a legislative vote, will allow Schwarzenegger to exercise his immediate power to save the state some bucks.
But Bass isn’t happy with the possible move.
“More furloughs mean more foreclosures,” Bass said in a statement. “That’s the wrong direction on a day when the federal government has announced there are already more homeless families than ever before. More furloughs mean a loss of revenue for already hurting local businesses who are struggling to hang onto customers in this recession. More furloughs mean fewer services for the public.”
“How are state workers supposed to be effective helping root out waste, fraud and abuse for taxpayers if they are being locked out of their workplaces 20 percent of the time?”
Bass talks with reporters as she and Assembly Minority Leader Sam Blakeslee, R-San Luis Obispo leave Schwarzenegger's Capitol office on Calif., Friday, July 10, 2009.(AP Photo/Rich Pedroncelli)
Proposition 98: Education cuts have become inevitable as legislators work to reach an agreement. However, Schwarzenegger’s proposal to suspend Proposition 98, an education bill, is at the center of the table. The bill guarantees a certain amount of funding to California schools and a suspension of it will require approval by two-thirds of the legislature, as with any fiscal bill. His proposal saw major opposition last week when the California Teachers Association, a union representing 340,000 education employees, launched a TV ad against the Governor.
“In the past year alone, education spending has been cut by $12 billion, forcing districts to cancel summer school, dramatically increase class sizes, close libraries, and eliminate art and music programs,” said CTA president David A. Sanchez. “Suspending Proposition 98 would make matters even worse for our students and their future.”
Related Links: California’s Budget Crisis Diaries | Fool’s Gold
California State University: Higher education is taking a big hit from the state’s budget woes. Last week, the University of California system announced major cuts. Now, the California State University system has announced that it has taken a $584 million reduction for fiscal year 2009-2010. The cuts have caused the CSU system to no longer accept student applications for the winter and spring terms.
According to CSU, its 23 campuses typically accepted 35,000 students during the spring term. As a whole, the changes will reduce enrollment by 40,000 students for the 2010-2011 school year.
In addition to enrollment changes, the CSU board of trustees is considering to raise fee increases by 25 to 30 percent.
The CSU board of trustees will discuss the fiscal changes at a board meeting on July 21.
Associated Press writer Samantha Young contributed to this report.
Tags: california budget mess, california deficit, california furloughs, california health care, california state university, california teachers association, calworks, darrell steinberg, dennis hollingsworth, education cuts, karen bass, proposition 98, sam blakeslee, Schwarzenegger, SDNN
READER COMMENTScomment rules | moderation | privacy
BlogsBlogsMedical marijuana: Time to get rules in place and follow will of voters16 hours, 1 minute ago BlogsMedical marijuana: The law is the law and should be followed16 hours, 2 minutes ago Eat Drink San DiegoCooks Confab, Little Italy Mercato do street food16 hours, 8 minutes ago Classical-OperaPianist Yuja Wang the ‘wow’ in Shanghai Symphony concert17 hours, 41 minutes ago Eat Drink San DiegoChampagne at the Wine Festival - cocktails on The Bubbly Girl18 hours, 36 minutes ago Eat Drink San DiegoFestivities continue, Sam the Cooking Guy makes holiday brunch18 hours, 59 minutes ago |
|
- So-called patients are hijacking medical marijuana
52 - Neo-Nazi group rallies in Riverside as hundreds of counter-demonstrators protest 46
- Darren Sproles needs a nickname: Any ideas? 29
- Jarka case: Murrieta man expected to be sentenced today for murder of wife 27
- Jarka trial: Murrieta man sentenced to life in prison without parole for murder of wife 24
- Marines could lose 'family members' after Camp Pendleton bans pit bulls 18
- What does Maine's rejection of gay marriage mean for California? 17
- Judge says La Jolla seals can stay 17
- Marijuana task force makes recommendations to City Council 14
- Palin backs 3rd-party candidate in NY House race 13
Sections
Blogs
Extras
Comment by: Justin Case Posted: July 13, 2009, 2:49 pm
I saw this coming back in 2005, and moved to Myrtle Beach, South Carolina. Everything is cheaper here…..low taxes, including property taxes under $1,000 per year on my new 3 bedroom, two bath townhome. We have everything California has except the surf. There is no traffic, the air is clean, and we have very few illegal aliens, primarily because we don’t shell out freebies to the freeloaders. Californians are drowning from the excesses of liberalism. Somebody better put a hose in their mouths. Get out while you can people.
Comment by: Chun Posted: July 13, 2009, 3:55 pm
Again, why all the fuss over cutting spending in California? The state has the highest tax rate in the country, yet provided one of the lowest services in the country. It proves the state government is not efficient. Those inefficient state workers and their managers need to be fired and without pensions. We need to cut tax, cut state spending, and give the money back to the working family.
Comment by: John Craig Posted: July 13, 2009, 4:54 pm
Check out the cost of a moving van on U-haul from Sacro to any city (say Dallas); and that same van from Dallas to Sacto.
You will find that the cost from Cal to Tx is about $600; from Tx to Cal about $2,200.
They can’t keep trucks in Cal. Since the population is relatively stable, I can only conclude that those with the wealth to fit in a moving van are moving out while those with the wealth to fit in the trunk of a car are moving in.
good luck with that kind of a tax base.
john
Comment by: hoa.quach Posted: July 13, 2009, 5:36 pm
John,
You read The Economist article too, it looks like. Good stuff.
For those that haven’t read the latest Economist feature story, check out budget diaries day nine and scroll to the bottom. Interesting article comparing Texas to California.
Hoa
Comment by: Kev Posted: July 13, 2009, 5:49 pm
CARB is the answer.
Get rid of it.
Comment by: Lynn Posted: July 13, 2009, 5:59 pm
I understand money was promised for education but look at the result. Either we make teachers responsible for educating their students and preparing our kids for the work force and/or college or find another job. A big chunk of the states money is for education (but the teachers are not classified as state workers) and the current results are not worth it. Karen Bass not wanting to cut any of the social services should go and personally take care of the slackers that are taking advantage of us. We must cut spending and wipe out the mismanagement and fraud (shouldn’t have to pay out millions in fraudulent claims to Medi-cal before we know there is a problem).
Comment by: United States Citizen Posted: July 13, 2009, 6:06 pm
Before you make a comment make sure you know what your talking about Chun. Example: You say inefficient state worker(s). Well then by assuming your name is Chun you must be an illegal immigrant from China? Do you get my drift?
First of all I am a United States Citizen. Second of all I am a United States Military Veteran (United States Marine Corps.). This means I put my life on the line so you can do whatever you do throughout your day, and this includes posting your comment on this blog. Third I have two college degrees and I consider myself intelligent enough to respond to your negative comment on this blog. Fourth I am a state worker (correctional officer) and I am proud to do what I do.
People like you have no clue of our daily work duties. I put my life on the line again so these hard core killers don’t break out and decide to kick in your front door and rape, or kill your family. Don’t believe me? You better turn on the news. Before you ridicule state workers and you want them to be fired and go away, make sure you have someone in line to step up and take on this vicious, lifeless job. I’ll tell you first hand there’s not very many people willing to do it and from the time I spent in the Marine Corps I’ll tell you first hand this job is the worst job I have ever worked. If you don’t believe me then why is the overtime so abundant? Because they can’t find intelligent, mentally tough people to work as a Correctional Officer, or as the Sacramento Bee or other Liberal newspapers report, GUARDS. If people like you would educate yourself (please take the time - http://www.cdcr.ca.gov/Career_Opportunities/POR/Pay.html) it takes over 6 years for an officer to reach $72,000 a year. Last year I took home $51,000, which included all of my overtime. So what does this mean? This means with the 15% pay cut in force I will take home $43,350 this year. Subtract the Governors newly proposed 5% and I am at $38,250. After doing the math this job is not very appealing anymore and I think I’ll take my college degrees and leave the state. Don’t worry! I’m not leaving quite yet. I never was a person to quit, or be beaten. I’m going to make sure I am vested in my pension so I walk away with some kind of financial compensation before I move to the state my heart truly loves. But before you run everyone out please be sure you fill them with mentally tough, educated people who don’t mistreat inmates and cause the state to be sued to no end. If you really want to know why the state is going broke it’s because the inmates are getting free college educations, free unnecessary medical care.
Inmates are being transported out to sleep apnea centers. Inmates are having moles and warts removed for cosmetic reasons, and not life threatening. Inmates are getting injections so they can grow breasts and look like women. Don’t believe me, then you better educate yourself. I see it first hand daily and it makes me ill. Before I close, I want you to know that I don’t hold a grudge against you if you are an immigrant. I do hold grudges against the legislators and other people who have allowed illegal immigrants into this state and are taking away from people who truly deserve it. These are the reasons this state is falling apart. Quit blaming the state workers who put their life on the line. Before you take a stab at me, A STATE WORKER, be sure you have all your facts straight! God Bless America and all of the state workers who put their lives on the line!
Comment by: jp Posted: July 13, 2009, 9:22 pm
The IOUs, if this keeps going on and on, will drop in value. It is inevitable. you would have to print 50 billion in IOUs to get 25 Billion in spending. Rome is burning. They should cut all programs. Raising taxes is what got us deeper into the depression. I think that the elected officials are so scared of these liberal groups, they are not capable of making ANY choices, let alone, the tough ones. I think Arnold is right on the money. Dont raise taxes.
Comment by: John Clark Posted: July 13, 2009, 10:11 pm
State workers are Lazy..I worked for the prison system for one year so I know..They bank there hours, furloughs..there is no furloughs, State Workers have found loopholes in the system, They use furlough days and bank there hours to get paid vacation..solution: California just go backrupt, and start over with the Unions, also there are too many State workers for the job, I seen 8 secretarys for a one secretary State Job..and to lay them off takes 6 months
Comment by: LCD Posted: July 13, 2009, 10:39 pm
I am reading with great apprehension the evolving news about our State’s budget.
I cannot believe that Sacramento is starting to talk about suspending prop 98, for the second time in 2 years.
Education, the corner stone of our democracy, is once again made the scapegoat.
A bill is currently being discussed in the Senate which would lower the majority requirement necessary to raise a parcel tax, benefiting school districts. The bill is called SCA 6.
This bill is not a tax increase, rather, it would restore the democratic process, giving communities the opportunity to make local choices, benefiting local schools without going through Sacramento.
Please consider signing an on line petition in support of this bill
http://www.gopetition.com/petitions/save-california-schools.html
Comment by: Grey Deitrich Posted: July 14, 2009, 11:25 am
California state workers were examined for efficiency by the GAO. The results were startling. California state workers abuse sick and vacation days, file for fraudulent overtime, and have the lowest productivity of any state in the nation. Arnold is on the right track according to GAO.Gov. Other abuses include extended lunch, personal use of state equipment, and being paid for days not actually worked. There are a few exceptions to every circumstance, but the evidence is overwhelming.
Comment by: Conor Posted: July 14, 2009, 12:21 pm
Does progress mean addressing school funding and welfare or coming up with new and creative accounting gimmicks? Californians need to hold the state’s leaders accountable. Using stopgap measures to “address” the budget will not get the job done. In fact, these measures, like the proposed three percent withholding on independent contractors, will actually leave the state in worse shape next year. Hopefully the big 5 are taking aim at the meat of the problem because stopgap measures are not solutions.
Comment by: Clint Posted: July 14, 2009, 1:06 pm
How about state employees who are worried about losing wages that are being paid them with TAX money join the real world: get a part time job! It’s high time that politicians and everybody else sucking on the public teet got a good dose of how people trying to make it in the real workforce live.
Comment by: Mike Posted: July 14, 2009, 3:23 pm
How about listening to the economics, if pot sells and makes government and produces enough revenue to create an army then guess what - time to say hello to pot. If gays want to marry - then say hello to the extra tax (excuse me) marrige income of 100$ each couple !!!
Comment by: Susie Posted: July 14, 2009, 4:22 pm
Amen United States Citizen!! Thank you for serving our country and our state. Correctional officers are at great risk. Day rooms are fill with triple bunk beds and angry inmates just waiting to attack the 2 officers in charge of all of them. My husband worked his way up from C.O. and is now an administrator. You wanna hear about waste. Legislative hearings demanding progress, progress gets going and is 70% complete, unions crying foul about the progress taking place, then legislators halting progress and forcing admin to start over, but not without firing the Secretary and a few others. Nothing gets done, but plenty of money gets spent. Now let’s talk about the MANY jobs starting at figures per year that Arnold has created for his “friends” to work in admin for corrections. People who have no experience, but are owed favors from the Governor. I can name names but won’t because it would be traced back to my husband.
Did you know that CHP hasn’t had to do any furloughs. Because the governors security staff is CHP.
Not all state workers are lazy. There are a few bad apples in every work force, State and private, and it is frustrating to see. My husband works 60 hours per week but get paid for only 40. (salary) Now with the furlough, he has to work even harder to make up for the lost work.
My advise is to visit a local level 3/4 prison and see for yourself. Officers don’t get breaks or lunch hours. They have to constantly watch thier backs and many of them die from heart failure before they see retirement due to the stress level at work. You try doing that kind of job at that kind of pay. My guess is that c.o.’s will quit when they get the chance and the state will have a hard time filling the positions and be forced to pay more.
Comment by: Dumpthebums Posted: July 18, 2009, 10:54 am
I think the rest of the country would like to grab California by the shoulders and shake them back to reality as one would do a hysterical child…….guess that’s what earthquakes are for.
Pathietic socialist trash.
Comment by: Dumpthebums Posted: July 18, 2009, 11:05 am
United States Citizen and Susie. Enough with your posturing and noblesse. Get off the government teat and get a real job in the private sector. Like all the rest of governmentia, you think it’s all about you. You’re just the hired help. If criminals bother us, we’ll be happy to shoot them as needed provided your bosses haven’t totally negated our right to do so. You are not the solution. You are part of the problem.
Comment by: Courtney Posted: August 4, 2009, 2:25 pm
The CHP has not been given furlough days, not because they are the governor’s security staff… Its because the CHP are the first responders for the thousands of traffic accidents that happen everyday in CA. They are the ones who start CPR and pull you out of your burning car before the paramedics get there.I wouldn’t want a single one of these officers to have a furlough day.
Comment by: jack nichols Posted: August 5, 2009, 11:04 pm
California is a sinking ship. I moved here because of the construction boom 20 years ago. I made money in real estate and sold in 2005. I have been helping rearange the deck chairs on the California Titanic. I am going to pack up all my cool stuff and move away. You fools that continue to stay can fight it out with the illegals, the minorities, and the lay abouts, as you get taxed into poverty. I will be sitting in the beach of an undisclosed location drinking an umbrella drink, and shaking my head. Good luck ya’ll