Posted on 02/18/2008 7:03:41 PM PST by NormsRevenge
State officials grappling with a $14.5 billion budget deficit could find they have a bigger problem than they thought.
The legislative analyst's office is scheduled to release its evaluation of Gov. Arnold Schwarznegger's budget proposals and projections on Wednesday amid continuing signs of a deteriorating economy and lower-than-anticipated state revenue.
When he released his budget plans last month, Schwarzenegger proposed across-the-board cuts and more borrowing to deal with a deficit then projected to reach $14.5 billion over the next 18 months.
But he conceded Saturday that the deficit could end up being larger than expected.
"You can only project," he said after signing a series of bills that begin to chip away at the state's red ink through a series of cuts and spending delays. "It could be that those numbers ... are off by $1 billion, and so the (legislative analyst's office) is going to come out with new numbers and with new information, and we are going to look at that."
Also this week, lawmakers face a Friday deadline to introduce bills for this year's session, and several legislative committees have scheduled fact-finding hearings on topics ranging from obesity to teen driving to sexually transmitted diseases. Here's a rundown on some of those hearings:
TEEN DRIVING - Two Senate committees will hold a hearing Tuesday on the link between teen traffic fatalities and cutbacks in driver education programs at California high schools. According to the committee, teenagers are involved in an inordinate number of fatal accidents despite adoption of increasingly stricter licensing requirements for young drivers over the last decade.
OBESITY - Another Senate committee will look Wednesday at the status of Schwarzenegger's obesity prevention program.
PRISON CROWDING - The Senate Public Safety Committee will question administration officials on Tuesday about efforts to reduce prison overcrowding. The committee's chairwoman, Sen. Gloria Romero, D-Los Angeles, is holding up legislation that could add to the crowded conditions by creating new felonies or increasing sentences.
OUTSIDE CONTRACTORS - The Assembly Utilities and Commerce Committee wants to know if the state Energy Commission's use of outside contractors is leading to redundant or unread reports that waste taxes. The hearing is on Tuesday.
SEXUALLY TRANSMITTED DISEASES - The Assembly Health Committee will meet Tuesday to look at the causes, costs and ways to control what it calls an epidemic of sexually transmitted diseases.
LIFE INSURANCE - On Wednesday, the Senate Banking, Finance and Insurance Committee will examine the growing life settlement market, which involves the sale of life insurance policies from the original buyer to a new beneficiary for more than the cash value offered by the insurance company.
Among other things, the committee wants to know if senior citizens, who are the primary targets of life settlement investors, are getting raw deals when they sell their life insurance. The committee's chairman, Sen. Mike Machado, D-Linden, is drafting legislation to regulate the market.
I don’t think he really knows what effect the illegals are actually having on the State Budget.
Tom MCClintock and Senate Republicans have been warning that the $14.5 billion estimate is too low. Expect something like 18-20.
Scwartzenneger has been living with the snakes for so long, he is one by now (although that wasn't such a long road to travel). Now, he would have us believe that "reducing" the projected deficit by 7% (and, assuming 6% inflation, this means by 1%) by stiffing doctors (who we need) by $500M and by reducing the gargantuan payola to California's utterly and miserably FAILED public "education" establishment (with which I have no argument, but don't believe will ever happen) will solve the state's piggish spending addiction. God, I hate these people.
Just increase taxes. That'll fix it.
Someone introduce the Musclehead to the Line Item Veto pen in his desk and lets get on with it!
” I don’t think he really knows what effect the illegals are actually having on the State Budget.”
and he doesn’t care...three more years of this clown and we’ll have one hellofa mess to clean up after he’s gone!
Not only is this costing the state more money than necessary housing prisoners that have done their time, but the state has had to fork out about $500,000 to settle lawsuits!
And they say they can't find 10% savings here and there!
And I heard just the opposite. They are contemplating early release for several thousand prisoners...
But it shows you just how screwed up California government is: they're asking us to support early release of potentially dangerous criminals, but they can't even manage to properly release the criminals who ought to be released.
Friday, 08/24/2007GOVERNOR: Well, I can’t say good morning anymore, it’s good afternoon. But it’s great to have you all here at the Rotunda. And let me just say that some things are worth fighting for and a good budget is one of those things. Now, we all know that the negotiations were tough, and it took a little bit longer than expected, but the fact of the matter is that I am very proud of this budget and I’m very proud to sign it here in front of you today.
I want to first of all say thank you to the Legislators ...
And I can’t overlook my amazing staff, who is right over here, especially my Chief of Staff, Susan Kennedy ...
And of course also the people in the Finance Department under the leadership of Mike Genest, who worked very, very hard. As a matter of fact—where is Mike Genest? He’s right over here—you don’t see it, but he had shoulder surgery. He worked so hard and kept cutting down, and cutting, and cutting, and bringing --
SPEAKER NÚÑEZ: From all the arm twisting.
GOVERNOR: —exactly, from all the arm twisting, that now he had to have shoulder surgery the day the budget passed. ...
Now, three and a half years ago when the projected budget deficit was 16.5 billion dollars, I don’t think anyone envisioned that we would be standing here today with a budget that has zero deficit—-zero deficit. That is an extraordinary accomplishment. And the only way that was possible is because of Democrats and Republicans working together. Every year we cut it down, the budget deficit, from 16.5 billion dollars down to 12, down to 8, down to 4, and this year down to zero. ...
SPEAKER NÚÑEZ: Thank you, Governor, very much. It’s a pretty noisy Rotunda this afternoon. The Governor says, “Stop complaining.” It kind of reminds me of the noise surrounding the budget impasse. But I want to say something about this budget, because this budget has had critics to the left and to the right. I want to say that given the tools and the limitations that we have to work with here in the state of California, this is—make no mistake about it—the best budget that we could craft. And I, as the Speaker of the California State Assembly and a Democrat, am here today to stand by this budget.
First, everybody knows that obviously the budget we deliver the Governor had the highest reserve in the history of California. Ours put 3.4 billion dollars in the California savings account. With the Governor’s blue pencil, it’s even going to be higher than that. ...
And that is why we all need to be proud of this budget. ... A budget that is balanced, a budget that puts lots of money in the California savings account, a budget that protects law enforcement and education, is a budget that Californians ought to be very proud of.
Governor, thank you for the work that you have done and the leadership that you have brought to keep us together, to making sure that we have a fiscally sound budget, tightfisted budget, for the people of California.
Q: Governor, there’s a projected deficit next year of 5 billion dollars, and some of the legislative leaders are saying that they should begin work on it early. Do you agree? Would you expect that to happen?
GOVERNOR: Well, first of all, I think that it will be again zero next year. I think that’s what we always should shoot for, from here on out. And I think that, yes, there’s a projected structural deficit, and we’re going to deal with that. You know, if we see the revenues go up, then we don’t have to deal with it early. If we see that our revenues are coming in lower than they anticipated, then we can again all sit down and start looking at it in a fiscally responsible way.
Did you mean this thread?
Yes, I’m back inside now. Sorry...had to go for a smoke LOL. I’ll read it now.
Same old bad news... and it’s going to get worse.
Beware of the “solution” that is ultimately proposed.
It may not be new taxes, but it will surely cost just as much! (IMO)
I posted a snip from the McClintock article on the other thread
(the one whining about mandates)
http://www.freerepublic.com/focus/f-news/1972581/posts
One of his solutions are to delay payment to the Counties for 6-9 months for services already rendered like Medi-Cal mental health services, public health and social services. The small rural counties just don’t have the cash float to shoulder this. Look for some doors to close and programs to be turned back to the state if they try that.
The state is in the red to the tune of $500 million a month.
You have it wrong. They are getting ready to release prisoners early (22,000 of them) and they will also not automatically return probationers to prison that commit a new offense.
I said they want to release prisoners early, but they are also not currently releasing prisoners that by law must be and are causing us to pay into lawsuits from those who aren't being released at the proper time.
So the are screwing up in every way possible.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.