Posted by: Kim_Hamilton on 05/15/2009 12:38 AM
Updated by: thepinetree on 05/16/2009 11:10 AM
Expires: 01/01/2014 12:00 AM
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Gov. Schwarzenegger Unveils Two May Revision Proposals to Address California's Budget Deficit....Proposes Solutions to Shore-up California’s Deficit, Find Further Savings in State Government
Sacramento, CA...."A strong believer in a government that is transparent and accountable to the people, Governor Arnold Schwarzenegger today unveiled two May Revision Budget proposals to address the state’s pending deficit that has grown as the global economy has continued to deteriorate. Just months after the Governor and state lawmakers solved a $42 billion deficit, the worldwide economic slowdown has produced a new multi-billion dollar deficit and our state is looking at some unprecedented actions to bring our budget back into balance. Both of the Governor’s proposals contain painful actions that will affect all Californians".....
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“Californians have a right to know the truth about the size of the problem our state is facing and the steps we will take to solve our deficit. That is why I am proposing two May Revision Budgets today to ensure the people of this state are informed and are not surprised by what is coming,” said Governor Schwarzenegger. “With the continued global recession we face a certain $15.4 billion shortfall and, if $6 billion in February budget solutions are rejected on May 19, that number will increase to $21.3 billion.
“To solve our immediate cash crisis, we simply cannot avoid deep and painful cuts in spending. Some of these solutions are things I would never have considered in the past but, unfortunately, our state could be in a worst case scenario if the propositions fail.”
Regardless of the May 19 election, California has a multi-billion dollar budget deficit that must be addressed with difficult but necessary actions that the Governor is pained but prepared to take. The Governor is proposing a mix of cuts, borrowing and other measures to balance the budget:
* Obtain up to $6 billion through a Revenue Anticipation Warrant that will help the state avoid deeper cuts to vital state programs and services.
* Health and Human Services makes up the second-largest part of California’s General Fund, meaning the state must find savings in social, developmental and health care services. Examples include reducing funding for Healthy Families, rolling back the rate increase for Family Planning Services and reducing Medi-Cal payments to private hospitals by 10 percent.
* When California’s revenues fall, so does the formula for education spending, translating to a $3 billion reduction in education spending. This could mean a school year shortened by five days.
* Delay all repairs to the State Capitol for one year.
Additionally, the Governor is proposing measures that will help root out waste and redundancy in government, allow the state to take advantage of its real estate assets to help balance the budget and improve government efficiency. To achieve additional savings within government, the Governor is proposing the sale of seven state-owned properties including San Quentin State Prison and the Los Angeles Coliseum; making government more efficient through eliminating and consolidating some state functions including streamlining the state’s energy functions, eliminating the Integrated Waste Management Board and seeking a private entity to take over operations of the California Science Center; and, reducing the state workforce by 5,000 General Fund employees to help get our budget in balance. These measures will help ensure that state government is cutting back and making the necessary sacrifices to balance its budget like every other Californian.
If the measures on the May 19 ballot fail, California’s budget problem will grow by $5.8 billion - forcing even more painful cuts on top of those already proposed to solve the $15.4 billion shortfall. The Governor would be forced to make even deeper cuts to state programs and services including:
* Education funding would be cut by an additional $2.3 billion. A $5.4 billion cut would force schools to shorten the school year by 7.5 days, increase class sizes and layoff even more teachers to absorb the reduced funding levels.
* Outreach funding for UC and CSU would be fully eliminated.
* Funding for public health and social service programs would be cut event further. These cuts would cut off approximately 225,000 children from the Healthy Families Program and entirely eliminate funding for Substance Abuse Treatment and Crime Prevention and HIV Education and Prevention.
* Borrow $2 billion from local governments. The Governor has fought to protect the coffers of local governments throughout his administration, but a $21 billion budget deficit leaves the Governor no choice.
* Release thousands of undocumented immigrant inmates. With an additional $5.8 billion problem, the Governor would be forced to release thousands of undocumented immigrant inmates directly into federal custody.
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