http://www.bakersfield.com/24hour/nation/story/1998415p-10016377c.html
By TOM CHORNEAU, Associated Press Writer
SACRAMENTO, Calif. (AP) - Already having promised he wouldn't raise taxes, Gov. Arnold Schwarzenegger is releasing a budget plan expected to include broad spending reductions to close an $8 billion shortfall.
However, legislative Democrats and others who oppose cuts to education, health care and other government agencies say the proposal to be announced Monday is only the opening salvo in a long debate over the spending plan for the fiscal year beginning July 1.
"Hopefully this is a worst-case scenario," said John Laird, chairman of the Assembly's Budget Committee, of the governor's proposal.
The Schwarzenegger administration has kept most of the plan's details secret. However, the governor outlined some details during his State of the State speech Wednesday, and state Finance Director Tom Campbell has provided details on some aspects of the plan in interviews.
Schwarzenegger's proposal to reduce California's budget shortfall includes borrowing $1.5 billion from an account set aside for transportation programs.
He also plans to use $1.7 billion of $3.5 billion left over from last year's record $15 billion bond deal and is counting on continued economic growth to produce more revenue next year.
But most of the solutions are expected to come from spending cuts. Some Democrats who are calling for a tax increase instead.
Teachers, school administrators and other education employees have accused Schwarzenegger of breaking a promise last year to provide schools with money guaranteed under a 1988 ballot initiative that says schools will receive 40 percent of all general use tax money raised.
But many education officials say they expect the administration will again suspend Proposition 98 and cut the education budget.
Advocates for the poor say they, too, are worried.
The state's $25 billion public health and welfare system will take even bigger hits than education under the proposed budget. Next to schools, they say, health and human services is the second largest consumer of the state's general fund.
"All we know is that it will be ugly," said Anthony Wright, executive director of Health Access, a coalition of health care organizations. "There's nowhere else to cut to get the savings that they need."
I just want to thank you for posting CA politics. You keep me up to date on what's going on in my own state. Actually, you do the work I'm too lazy to do. I'm not sold on AHnold. Time will tell, I guess.
Its also California's first ever E-Budget. What was once a telephone-size book released to legislators, State Capitol insiders and special interests is now available for every Californian to view online for free. The days of budget secrecy are gone forever. Now you can at the click of a mouse button, see how the budget affects you and your family and California's future. A much needed step to bring our state's government into the Information Age and here California joins a handful of state with an E-Budget.
If Schwarzy can get the Democrat controlled legislature to enact serious spending cuts and stay away from raising taxes, he will have made tremendous strides in getting Cal's fiscal house in order. OTOH. This shell game that Arnie's been playing, can only go so far. Somebodies got to pay the bill, by either cutting services, or raising taxes. Maybe a bit of both. California remains in economic meltdown.
If they could get the illegals off the dole (in its various forms including pubskewlz) CA would be a much more golden state
So this year's budget will be less than last year's $105 billion budget? This I gotta see....
What? "Spending cuts" doesn't really mean "spending cuts" but rather means only lower increases in spending??
Maybe Mac should email RINOld "The 13 Percent Solution"
I heard they were "cooking the books" in Saco
Isn't this why Gray Davis was put out of office and Ahnold was elected?? They should expect cuts!! They need to get rid of the Socialists in the state house and clean it up. Get rid of the Illegal Aliens and all of the goodies the Socialist passed on to their pals in FAT retirements and benefits packages. I'm sure there is a lot of FAT on that calf!! Maybe they should have a panel of Taxpayers from various income levels to recommend cuts!