Schwarzenegger Proposes Billions in Cuts (No new taxes)

AP ^ | Jan 9, 2004 | TOM CHORNEAU

[TheDon]

By TOM CHORNEAU, Associated Press Writer

SACRAMENTO, Calif. - Gov. Arnold Schwarzenegger (news - web sites) unveiled a $99.1 billion budget plan Friday and proposed cutting billions of dollars from public health and welfare programs to help pay for it.

AP Photo

Without cuts or higher taxes, California is expected to face a $14 billion deficit by June 30, 2005, the end of the upcoming fiscal year.

Schwarzenegger did not include any new taxes in his budget plan Friday, but in addition to the cuts, he requested higher state park fees and tuition increases of as much as 40 percent for college students.

"For the past five years, the politicians have made a mess of California's budget," Schwarzenegger said. "Now it's time to clean it up."

The biggest hits are aimed at the state's Medi-Cal program, which would lose close to $900 million next year under the governor's proposal. The state's program to bring welfare recipients into the work force is also targeted in his plan with a $800 million cut.

City and county governments, already upset by the loss of about $4 billion they were expecting from a car tax increase that Schwarzenegger repealed, also would lose out.

The governor proposed taking an additional $1.3 billion that the local governments are counting on and instead use it to pay state expenses. The move is a shift from Schwarzenegger's previous pledge to protect the local governments, though he said Friday that he would still find a way to replace the lost car tax revenue.

"We need to know what else is piled on top of it," said Pat Leary of the California State Association of Counties.

Schwarzenegger's budget is built on a rosy economic picture next year, projecting $2.9 billion in additional tax revenue to be available in 2004-2005.

Getting support for the spending plan won't be easy. Democrats, who control both houses of the Legislature, have said the burden of the state's fiscal crisis shouldn't fall on the poor and disabled.

The hit to public health under Schwarzenegger's plan would include caps on enrollments for the state's health insurance program for the poor and elderly and the elimination of some medical benefits for the poor and disabled.

University students would see higher fees under the proposal, with undergraduates paying 10 percent more, graduate students paying 40 percent more, and middle-income students being offered less financial aid.

Community college students would be asked to pay $8 per unit more — from $18 per unit to $26.

Some social service advocates say tax increases should be used instead of spending cuts to solve the state's problems.

"I expect that there will still be hard hits on health programs that will hurt children and working families very hard," said Catherine Teare, spokeswoman for the Oakland-based advocacy group, Children Now. "I just don't see how this all gets done."

According to estimates updated this week, the state will have a deficit of nearly $27 billion by June 2005 — created by an existing deficit of $12.6 billion run up over the past three years and a projected shortfall of $14 billion by the June 30, 2005.

Schwarzenegger and the Legislature have put a $15 billion bond issue on the March that would pay off the existing deficit, but the $14 billion projected deficit for next year remains.

A key underpinning of his plan to balance the state's budget without raising taxes had been backed by educators, who agreed to accept $2 billion less next year than they are owed.

But even if legislators approve Schwarzenegger's budget plan, which will be revised in May, it will mean little if voters don't approve the $15 billion bond deal in March. So far, administration officials said, early polls indicate voters don't like the measure and may not pass it.

[Hodar]

Community college students would be asked to pay $8 per unit more — from $18 per unit to $26.

That's still quite cheap. Considering that I paid $46 to go to SDSU (So. Dakota)almost 20 years ago. My wife is presently paying $50-something here in Austin's Community College. I don't see why they are crying.

[Naspino]

"I expect that there will still be hard hits on health programs that will hurt children and working families very hard," said Catherine Teare, spokeswoman for the Oakland-based advocacy group, Children Now. "I just don't see how this all gets done."

This mindset is so annoying. You shouldn't have had the money in the FIRST place. Amazingly other people in this country do just fine without the overboard California spending programs.

[Grampa Dave]

You need to multiply the number of so called consultants by at least a hundred in the Rat's main industry of welfare or quagmire war on poverty.

"several hundred "consultant jobs" eliminated"

[Only1choice____Freedom]

Let the whining begin.

[cpst12]

>>I haven't seen much contrition from all the Freepers who "just knew" Arnold was going to raise taxes.

No he hasn't raised taxes yet...but has jacked up many fees, some several hundered percent, which to me, is the same thing as a tax increase....

and lets not forget, the key to getting his whole plan to work is to BORROW $15,000,000,000 to pay for what CA couldn't otherwise afford....

Now if he had not planned on BORROWING money to pay for things, then maybe, just maybe, I'd have an ounce of respect for what he is trying to do. Every dollor borrowed today is a future tax dollar that needs to be collected (plus interest).

[Solson]

Did ANYONE see Letterman last night with his "Unfair Edit"?? They were hillarious, especially the two of Schwarzenegger!!

[Phantom Lord]

Are these actual cuts, or just reductions in the previously proposed increases? I suspect the latter.

[commish]

But But But how can this be. We were told by so many that AHNOLD was just a RINO and he would tax tax tax and be just horrible as Governor.

How can it be that he is asking for real cuts, and not raising taxes. Although, I am sure to save face the naysayers will start bloviating about how raising park fees, and tuition costs is "the same thing as raising taxes"

At the moment I would rather have "RINO" AHNOLD than lets see how much we can raise taxes "Conservative" Bob Riley as my Governor.

[N. Theknow]

SACRAMENTO, Calif. - Gov. Arnold Schwarzenegger (news - web sites) unveiled a $99.1 billion budget plan Friday and proposed cutting billions of dollars from public health and welfare programs to help pay for it.

GASP!

When I first saw this thread I said to myself, "I wonder if he will cut the places that NEED cutting, or wimp out and cut only the services that benefit the people who pay the bills, aka the taxpayers."

[Grampa Dave]

In California your later part of your statement is more accurate: "or are in the study of unnecessary crap that somebody shouldn't have even gotten an undergraduate degree in to begin with."

Thirteen years ago when our oldest son was graduated from college, there were many college graduates who couldn't buy a job.

He told me not worry. He said these were the sons, daughters and its of liberals who had Instant Unemployment Degrees.

Then, he made a prediction on 6 of these individuals that we knew. He said that they would stay in college and get a Masters in their Instant Unemployment Degrees and then a Phd in their Instant Unemployment Degrees. Then they would be hired by some university/college to teach basic Instant Unemployment Degrees.

He was correct on 5 of them. The sixth got pregnant and dropped out of her phd program. She will be returning to azWomen's Studies Phd program sometime this year.

[commish]

Oops my prediction on Post 28 was too late, the "raising fees is the same as raising taxes" mantra has already begun on post 25.

[BreitbartSentMe]

I think Arnold's been studying stratergey from Dubya. I found this gem buried in this thread: http://www.freerepublic.com/focus/f-news/1054810/posts

From the SacBee: "By law, the state is not allowed to reduce pension benefits already granted to current state workers. But Schwarzenegger will propose offering new workers reduced benefits, sources said, similar to those in place before the Legislature sweetened pensions in 1999."

This puts the unions in an untenable position. They have to oppose it, that same issue was one of the main things that lead to the grocery strike, that's still ongoing. If they don't come out with guns blazing, the rank and file will crucify them. If they do come out against it, the general public will see them as a big part of the problem, and not willing to give a little to get out of this mess (like the education unions have already agreed to.) How's that for a poisoned pill??

[Tempest]

Which fees have been increased several hundred percent??? And aren't these fees all privilage uses and not entitlements??

As far as the borrowing goes you can thank your liberal buddies for the neccesity of that.

So let me get this straight?

You don't want borrowing?
You don't want increased fees?
You don't want higher taxes?

Hmmmmm.....

So what you want is bankruptcy??? Which would then definately lead to all 3 of the above things that you're crying about?!?!?

Oh boy! That's logical.

[RightWhale]

California may benefit substantially from the new NASA moon program. Bush may make the formal announcement in California, next week, perhaps at JPL. California could get a boost from the space industry as early as next year.

[elbucko]

Amazingly other people in this country do just fine without the overboard California spending programs.

Exactly. However Calif is a state that attracts and creates activists seeking constituents in order to feed at the public trough.

[Bonaparte]

Right on the mark! Papering over the debt with a $15B bond just gets us further into debt. I can see why he's doing it though. Without the enticement of all that bond money pouring into Sacramento, the democrats won't even consider his current budget plan. Hopefully, the democrats' budget concessions won't be tied to the success of this insane bond measure.

[Ernest_at_the_Beach]

Very clever!

Pete Wilson must know where all the bodies are buried, having done much battle with the socialists!

[Cyber Ninja]

Billions in Cuts (No new taxes)

I think this was etched on the sword of Conan the Barbarian.
It is a powerful double edged sword.

Swing it mightily Govertator!!

[mrs tiggywinkle]

**No he hasn't raised taxes yet...but has jacked up many fees, some several hundered percent, which to me, is the same thing as a tax increase.... **

What fees are he raised several hundred percent?

[zbigreddogz]

But I thought Arnold was a RINO who wouldn't cut anything and raise taxes on everybody! The McClintiacs told me so! Is it possible they were WRONG?!?!?! HMMMMMMMMM?!?!?!?!