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already upset by the loss of about $4 billion they were expecting from a car tax increase that Schwarzenegger repealed, also would lose out.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

[Tempest]

"Tempest, you'd have an argument if Anie CUT TAXES by the same amount he raised the fee. I wouldn't have a problem with that. "

???!??Huh?!?!

Errr.... So you feel entitled to some form of a tax reimbursment from education fees which is a service fee and not specific to all individuals?!?!?

Uhhhhhmmm so I guess that if I didn't own a car. Would you think that I should be entitled to part of the reimbursement for the vehicle license fee hike?!?

What is your point?

[Amerigomag]

"It's not FAIR. We said he was a RINO but so far he's gotten rid of driver's licenses for illegals, the car tax increase, is passing a spending cap of 55%, and is proposing steep cuts in the California budget."

One out of four ain't bad.

The "car tax" remains unchanged since 1948, no spending cap of any kind has been "passed" in the last several years and Schwarzenegger proposed a small increase in the California budget today.

[ridesthemiles]

When the bond fails, Arnold declares the state bankrupt. All contracts are canceled and every union must renegotiate. Billions will be saved.

WORKS FOR ME!!!!! EVERY TIME HE GETS IN FRONT OF THE MICROPHONES AND STARTS SAYING THINGS THAT MAKE THE DEMS CRINGE, ARNOLD MAKES MY DAY!!

[ridesthemiles]

Perhaps you didn't notice a couple FR's asking you about raising fees. I'd appreciate knowing which fees have been raised several hundred percent, as you claim. Thank you kindly.

Why do I think that this poster knows how to do simple math as well as a fish knows how to ride a bicycle????
Probably breaking his pencil tip trying to figure out how he got the first calcs he posted with.

[ridesthemiles]

The problem is that $99B is still 40% more than five years ago, and revenue growth hasn't caught up yet.

At the rate business is leaving Calif and the immigrants are coming in, the "revenue growth" may NEVER catch up with the spending.

[Mudboy Slim]

"Schwarzenegger has proposed a 5% increase in spending for health and human services."

The ol' cut of a proposed increased, eh? You gotta parse everything ya read these days...MUD

[Hoverbug]

go bullshit somwebody else.

Hb

[ridesthemiles]

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.

If we all knew the details of the spending for "the poor and the disabled" we would vomit.
The devil is in the details. One program "for the poor" is free dental care for "poor" students the minute they enroll in Calif schools.
I have enough trouble paying for my own dental care. I am 64, born in USA, and worked here since 16 y/o. Why should I pay one red cent of "poor student's dental care"? Not my kids. Not my responsibility. Schools are overrun with illegal immigrants, and teachers won't turn in any parent, since every body in a seat gets them a job. They are hypocrites.
Disabled is a term you and I would not apply to a self indulgent drug user, but that's what it is here in Calif. Break all the drug laws, drive while loaded, with or without a license, steal to support your drug habit, etc, and then get special category status as "disabled".Junk science. JMO

[Hoverbug]

The rate of taxes were set for those services. If you increase fees, you lower taxes, of yiou have a revenue increase.

Hb

[Tempest]

Now that's strange.

Private companies typically increase there service charges in order to cover cost. Yet in the case of the UC system even with increased fees he state will still be subsidizing the UC system.

So how do you figure again that fees gained for individual services should be returned to the masses when there is no real revenue gain????

[Tempest]

Awhhhh now. You're so teste! I was hoping for some form of a coherent contradiction to my assertions but if that's the best you could conjure up. So be it.

[Hoverbug]

You'll get coherent discussion when you become coherent. Are you saying that going from paying no taxes to paying taxes ISN"T a tax increase?

How do you explain the $2 billion cut in education? It's actually a $2 billion dollar increase. The $2 billion dollar cut was from an EXPECTED $4 billion increase.

So tell me, be coherent, is a $2 billion increase actually a $2 billion cut?

And I'm the one not making coherent arguments?

Hb

[Hoverbug]

Let me make it easy for you.

If the government used to collect a dollar, but now it collects 2 dollars, did the government just increase revenue?

Hb

[Tamzee]

Waving back atcha! :-)

[Tempest]

"If the government used to collect a dollar, but now it collects 2 dollars, did the government just increase revenue? "

Errr.... Ok so if it use to cost one dollar to make an item that retails for 2 dollars. But now cost 2 dollars to make that same item which sells for 3 dollars is that a revenue increase????

NO.

Accept in the case of the states education system it's more reminiscant of the service costing 10,000 dollars to provide yet the recipient is still only being charged $10!!!

Are you actually under the concept that the state is making or has ever made a huge boon off of the UC system?!

[Tempest]

Well ge you managed to jump all over the place with that reply. I'm not quite sure if you're refering to indian gaming now or the UC system?!?!?

I am amused though that you really, really seem to believe that the state does not face a deficit yet is actually bursting from the seams with so much surplus cash that we should all be entitled to tax return from some arm of goverment revenue that we may or maynot be contributing too.

[Tamzee]

I'm waiting to see how Freepers are going to defend Arnold when he initiates more gun control.

He won't, he is not anti-gun. The only quotes where he advocates gun control are from interviews when he was being questioned about youth violence and teens having guns.

Arnold Schwarzenegger 1998 - "Outlawing guns is not the right method of eliminating the problem. If you outlaw guns, people will still have them illegally. In Europe, they're outlawed everywhere. They have very strict gun control in Italy. Yet the Pope was shot. They have very strict gun control in Germany. Yet you see pimps shooting one another."

http://209.157.64.200/focus/f-news/968440/posts

[Hoverbug]

So they were deficit spending, which got us where we are now?

I'm not in disagreement with you at all that people should pay for the services they get.

Cut out ALL taxes used to subsidize state parks and charge a fee, but ya can't have it both ways.

Hb

[Hoverbug]

That's not it at all! I'm saying you can't claim Arnie isn't raising taxes while fees go up.

Hb

[Lancey Howard]

Disabled is a term you and I would not apply to a self indulgent drug user, but that's what it is here in Calif. Break all the drug laws, drive while loaded, with or without a license, steal to support your drug habit, etc, and then get special category status as "disabled".Junk science. JMO

It is an obscenity, and that is one reason why it is IMPERATIVE that ANY legislator who votes for ANY tax increase gets tossed out of office on his sick, sorry behind. No excuses, no second chances.