Thanks for the research on that "California Budget Project"... not exactly an objective group ;-)
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Schwarzenegger's three-prong fiscal reform plan
http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/11/25/state2038EST0145.DTL Tuesday, November 25, 2003
(11-25) 17:38 PST (AP) --
Here's a look at new Gov. Arnold Schwarzenegger's three-prong plan for breaking California's boom-bust spending cycle:
= Immediately cut spending by about $1.9 billion. Use executive orders and new budget-cutting powers to trim as much as an additional $2 billion from current spending. Present additional cuts during his Jan. 10 budget address.
Among the $1.9 billion in cuts he proposed to legislators:
-Postpone transportation projects. Savings: $530 million.
-Cut higher education. Savings: $160 million.
-Reduce Medi-Cal provider rates 10 percent. Savings: $152 million.
-Eliminating state wage assistance to the staff of long-term care facilities. Savings: $46 million.
-End respite care and recreational activities for the developmentally disabled. Savings: $69 million.
-Postpone vehicle license fee reimbursements to local governments: Savings: $475 million.
-Postpone flood control reimbursements to local governments. Savings: $105 million.
= Persuade voters to borrow $15 billion to replace about $13 billion worth of bonds approved by the Legislature in the current budget, but which face court challenges. The administration says the remainder also would replace unspecified current borrowing.
= Change the Constitution to cap spending at the rate of inflation and population growth. The governor could spend the resulting "rainy day" fund in a fiscal emergency, and could trim spending midyear unless two-thirds of lawmakers approved an alternative.
With the spending cap in place... lawmakers have to cut spending 20% to meet the constitutional limit. I can already hear the Democrats' death scream.... ;-)