(California)Governor's plan means big cuts (Schwarzenegger to slash 18% from budget)

Contra Costa Times ^ | Nov. 20, 2003 | Daniel Borenstein and Andrew LaMar

[FairOpinion]

Gov. Arnold Schwarzenegger's recovery plan will require slashing at least 18 percent from the state's budget for programs such as higher education, social services, welfare and corrections, according to a Times analysis.

After three days in office, Schwarzenegger has provided few details about where he plans to cut. But his comments and proposals so far suggest drastic reductions in almost every state-funded agency except kindergarten through twelfth grade and community college education.

Now, if voters reject his borrowing plan, he faces a $26 billion shortfall. If they accept it, about $12 billion in cuts still will be needed.

H.D. Palmer, the governor's finance spokesman, said there's no alternative to making cuts.

"If we don't start making the difficult but necessary decisions to finally get this state's fiscal house in order, life as you know it is going to change dramatically and for the worse," he said.

"It is not outside the realm of the possible that the state will run out of cash to pay its bills. We're running out of places to borrow.

[FairOpinion]

Arnold is doing the right thing: he is cutting the budget, but clearly the budget can't be cut overnight by $40B, so he needs the bond issue, to avoid having the raise taxes.

[HarleyD]

"After three days in office, Schwarzenegger has provided few details about where he plans to cut. But his comments and proposals so far suggest drastic reductions..."

In other words, we don't really know but we need to mobilize the troops.

[JakeWyld]

H.D. Palmer, the governor's finance spokesman, said there's no alternative to making cuts.

my emphasis

I like to read things like this. This says to me that the Gov and his team have their heads set right from a fiscal perspective. I sincerely hope that Arnold can succeed in making a positive turn to the state's economy with minimal burden to the taxpayers.

[goldstategop]

Its not going to happen - the Democrats will NEVER vote for cuts that deep and to be fair Republicans will also blanch at the prospect.

[RKV]

Line item veto.

[RKV]

Regulatory and tort reform can be accomplished with initiatives since the RATs in the legislature are unlikely to cooperate.

[Ernest_at_the_Beach]

Right on Arnoold!

[janetgreen]

Proposition 187 must be revived. This would save billions.

E-mail him about this at: governor@governor.ca.gov

[Ernest_at_the_Beach]

More Recalls coming!

[Cobra64]

Arnold seems to be doing what the stand-in president did in the movie: Dave

It was a great movie. Every Conservative should see it. Actually, especially the liberals should see it.

[NormsRevenge]

Are the prison guard unions willing to discuss renegotiation of contracts? I thought I heard something about that somewhere.

Workers Comp had a bandage applied by the dems, there is still much work to do. What about stealing AZ's plan, as youknowwho had said he would? ;-)

[FairOpinion]

"In his press conference, Schwarzenegger estimated his (workers comp)plan would save $11 billion by instituting an independent medical review, adopting objective, nationally recognized guidelines to identify disabilities and allowing employers 24-hour health insurance for workers’ compensation care that focuses only on injured employees.

"My (workers’ compensation) plan will provide $11 billion in savings and let the world know that California is serious about improving (its efforts) to attract business investment and new jobs," Schwarzenegger said.

"It is extremely important to know that everything I do I never want to hurt anyone, workers or the people that get benefits," Schwarzenegger said.

But he added that something is wrong in a system with the nation’s highest costs but not its highest benefits."

http://www.thedesertsun.com/news/stories2003/state/20031119000912.shtml

[WOSG]

Dang -- 18% cuts -- we need more Liberals like him in Washington DC! Teach those big spenders about how to fix our deficit.

[Caleb1411]

[William Tell]

The linked article suggests that the shortfall requiring spending reductions will include $8.2 billion described as: "Unsold bonds originally planned to cover the deficit from the end of the 2002-03 fiscal year. Schwarzenegger plans to replace them with a voter-approved bond issue. "

This seems to suggest that the portion of the soon-to-be-illegal "deficit bonds" which have already been sold will remain on the books. I can see no reason that these bonds would not have to be immediately refunded. Otherwise, it would suggest that Kalifornia can issue bonds without voter approval as long as they can be sold prior to a judge's ruling.

These additional billions of presumably already sold bonds are probably the reason that the state has not already run out of cash. Without this, I doubt that the state can hold off default for days let alone a couple of months to decide what spending cuts to make.

The Demoncrat quoted in the article who complained that she was being rushed is still living in fantasyland. There has been more than enough time to know that the state is overspending and more than enough time to know that the "deficit bonds" are illegal if there has not been a vote of the public.

[scannell]

If he is going to cut higher education, he can start by banning "tenure" in state run colleges and forcing the professors to work only 20 hours per week instead of 6 and then firing about 2/3rd of them that won't be needed.

[.cnI redruM]

What he needs to start with is The Schwarzenegger Circumcision Principal. You can take 10% off the top of anything.

[calljack]

He fired the head of California Veterans Affairs this morning. DMV head a couple of days ago was fired. His budget director walked out of a meeting yesterday because they waited an extra hour to call her up to talk. She talked for a while and said, because I was called late I cannot finish now,I have an appointment with the governor. They were all shocked that she would just leave. Things are changing here in california.

[FairOpinion]

"Things are changing here in california. "

===

They sure are, for the better. And we "ain't seen nothing yet", this is only Arnold's third DAY.

[SteveH]

Wow, that's not the spin I saw last night on TV. On TV, her action was portrayed as somewhat arrogant and disrespectful (please don't shoot the messenger). The reporter overdubbed the video saying that she "left in mid-question." Maybe she said something along the lines of what you suggest, rose to leave, and they continued to ask her questions as she was leaving after she had excused herself? In that case, the report would have been misleading... but what else is new... I could not find anything about it in one of my papers this morning...