Posted on 06/19/2009 8:31:02 AM PDT by NormsRevenge
California lawmakers passed a budget in February, but as the nation's economic downturn continued, so did the state's balance sheet.
Over the past several months, state analysts predicted that in the 2009-10 fiscal year - which begins July 1 - the state would receive between $21.3 billion and $24.3 billion less than what it needed to cover spending in the February budget.
That sent Gov. Arnold Schwarzenegger and the legislature back to drawing board to find ways to spend less or bring in more money. On Wednesday, about a month after Schwarzenegger announced his budget proposal, the Democratic-controlled legislature released a plan of its own.
Spending cuts
The Democrats' plan includes about $11 billion in spending cuts, mostly from the 2009-10 budget, but with some trimmed from the current year's budget. Cuts affect nearly every state-funded program.
Cuts listed here do not reflect reductions in spending from 2008-09, but reductions from the 2009-10 budget approved in February.
Education cuts:
• $4.5 billion from K-12 schools.
• $2 billion from the University of California and California State University systems.
• $490 million from community colleges.
Health care cuts:
• $323.2 million from Medi-Cal, the state's health care system for children, the poor and the disabled.
• $1 billion from Medi-Cal if the state can secure more money from the federal government.
• $64 million from state mental health programs.
• $25.6 from county health services.
• $18 million from the state's immunization program.
• $4.1 million in funding for domestic violence shelters.
• $3.1 million for Alzheimer's research.
Human services cuts:
• $240 million from CalWORKs, the state's main welfare program.
• $155 million from supplemental security income grants - cuts grants for individuals by $5 per month.
• $90 million from Substance Abuse and Crime Prevention Act.
• $26.6 million from group homes and foster family agencies.
• $7.7 million by cutting support for statewide fingerprint imaging system.
Public safety cuts:
• $1.2 billion from Department of Corrections and Rehabilitation - in part by deporting illegal immigrants serving prison terms.
• $169 million from judicial branch - in party by closing courts one day a month.
• $40 million from state Department of Justice.
Tax and fee increases
The Democrats' plan calls for bringing in about $2.1 billion by reducing corporate tax breaks and creating or increasing four taxes:
• A 4.8 percent charge on property insurance will create $119 million to help fund state firefighting operations.
• A $15 addition to vehicle license fee will pay for state park operations.
• A 9.9 percent tax on oil extracted from California will bring in an estimated $830 million in 2009-10.
• A $1.50 per pack tax on cigarettes will bring in about $1 billion, with 85 percent of the proceeds going to the state's general fund.
"Other solutions"
Along with cutting spending and increasing revenue, the Democratic budget proposal calls for shifting around state funding, taking money from local governments and putting spending off until the 2010-11 budget year.
The plan includes the following changes:
• Delay state workers' June 30, 2010, paycheck until July 1 - that pushes about $1.2 billion in spending into the 2010-11 fiscal year.
• Take about $1 billion in gas tax revenue from local governments, using it to pay down the state's transportation bond debt.
• Take $350 million from local redevelopment agencies and give that money to schools.
• Increase payroll withholding amounts by 10 percent starting in January, giving the state an additional $1.7 billion in the 2009-10 fiscal year.
Source: California Department of Finance, Assembly Budget Committee
They were doing great, then they got to raising taxes which their constituents have already said “no, you need to cut stuff instead”.
Amazing that they’re going to deport illegals that are serving terms. Huzzah for that.
I bet if they just cut another 2 billion out of pointless spending they wouldn’t have to raise taxes and fees at all. Let the state parks go au’naturale for a little while; they’ll be just fine.
Why was the state spending 3 mill for Alzheimer’s research?! That should have been a private investment through non-profits or donations.
Hahah, that oil extraction tax is hilarious.
Way to drive away energy independence and money.
“• Delay state workers’ June 30, 2010, paycheck until July 1 - that pushes about $1.2 billion in spending into the 2010-11 fiscal year.”
No cut, just a typical democratic slick maneuvers..............God help us!
You’re seeking logic in a realm that is completely lacking in the same.
“Amazing that they’re going to deport illegals that are serving terms. Huzzah for that.”
Amazing that that’s the largest savings. If they had any cajones, they would have continued along those lines.
Don’t give illegals medical care
Don’t give illegals welfare
Don’t give illegals education
Use the savings and deport the illegals. That alone should bring in 10 billion. Now Americans take those jobs and pay taxes on it. They put money back into the economy and taxes into the treasury.
Problem solved.
Was, rinse and repeat nationally.
Uh.. That sucks.
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