Steinberg outlines Democrats' bottom line

By Jim Sanders
jsanders@sacbee.com
Published: Tuesday, Jun. 9, 2009 - 11:58 am

Senate Democrats laid many of their cards on the table today, unveiling the parameters of what they will push as a budget-balancing deal.

Senate President Pro Tem Darrell Steinberg called for using much of the state's proposed $4.5 billion budget reserve next year to save key health, welfare and college scholarship programs.

"The purpose of a rainy-day fund is to provide funds for a rainy day," Steinberg said at a news conference. "It's thunder and lightning in California right now."

Specifically, Steinberg proposed using reserves as an alternative to Gov. Arnold Schwarzenegger's proposals to eliminate the state's CalWORKs and Healthy Families programs and to end future Cal Grant awards.

CalWORKS, an acronym for California Work Opportunity and Responsibility to Kids Program, is the state's primary welfare program. Healthy Families provides health care to low-income children, while Cal Grants provides financial aid to college-bound students.

Steinberg also said Democrats are determined to retain a viable program of in-home supportive services, helping the frail elderly remain independent rather than in nursing homes.

Steinberg said Democrats are willing to trim such essential programs, but not to eliminate or decimate them.

"It's a matter of degree," he said. "But degree matters."

California faces a projected $24.3 billion shortfall by July 2010 and can find itself unable to pay all its bills this summer unless it adopts a plan that bridges the massive gap.

Schwarzenegger has proposed his own budget-balancing plan, which calls for about $3 billion more in cuts than the framework unveiled by Steinberg.

The governor's plan also would borrow nearly $2 billion from local government coffers, while Steinberg's proposal would not.

To help make up the difference between the two plans, Steinberg would tap $3.5 billion to $4 billion of a proposed $4.5 billion reserve.

If bolstering the reserve fund is necessary, Steinberg suggested revoking various corporate tax breaks approved as part of past budget negotiations.

Steinberg declined to characterize his new budget proposal as a "line in the sand" with Schwarzenegger, but he said his Democratic caucus is firm in its resolve to save key health and human service programs. Assembly Speaker Karen Bass and he have worked together closely, he said.

Steinberg said the Senate is committed to striking a deal by July 1. Budget proposals require a supermajority vote of the Legislature, thus two Republican votes in the Senate and four in the Assembly.

Senate Minority leader Dennis Hollingsworth, R-Murrieta, said he is willing to consider Steinberg's plan but that he does not support stripping the state's reserves or eliminating tax incentives that could stimulate the economy.

The Democrats' new plan, like that of Schwarzenegger's, calls for deep cuts to public education, higher education, corrections, health, human services and other programs, Steinberg said.

Specifics of the cuts are not identical in the two plans, however. Steinberg said details will be unveiled in coming days in the Legislature's joint budget conference committee.

Cuts to public education next year largely would be backfilled by federal stimulus funds, the Senate president said.

Steinberg declined to say whether his plan would cut state worker pay. The governor has proposed a 5 percent pay cut to workers who already are taking twice-a-month unpaid furloughs. Steinberg said the issue would be part of budget negotiations.

Contact Darryl Steinberg here:

http://legplcms01.lc.ca.gov/PublicLCMS/ ... trict=SD06

http://www.sacbee.com/topstories/story/1932325.html