Thread: Schwarzenegger: $42B deficit weighing down California

Schwarzenegger: $42B deficit weighing down California

SACRAMENTO (AP) — California Gov. Arnold Schwarzenegger on Thursday called the state's massive budget deficit a "rock upon our chest" and said the crisis must be resolved before other policy issues are addressed.

"The truth is that California is in a state of emergency. Addressing this emergency is the first and greatest thing we must do for the people," the governor said in his State of the State address before a joint session of the Legislature. "The $42 billion deficit is a rock upon our chest and we cannot breathe until we get it off."

California's budget deficit is expected to soar past $40 billion over the next year and a half, the financial and construction industries have been decimated by the housing collapse and unemployment is on the rise.

Legislators have been at odds for months over how to close the gap, and state financial officials say California will have to start sending IOUs to state contractors and taxpayers expecting refunds next month if the budget is not fixed.

In that climate, the Republican governor's annual address was more austere than usual. Such speeches often are lengthy, filled with new policy ideas and held in the evening; this one took less than 20 minutes and was over before 11 a.m.

Schwarzenegger warned that California, which would be the world's eighth-largest economy if it were a country, faces insolvency within weeks if lawmakers fail to close the widening deficit.

Schwarzenegger said the state's financial problems are so pressing that no other issue — including education, water policy or health care — can be addressed until its budget problems are resolved.

"Let me tell you, I have big plans for this state. They include action on the economy, on water, environment, education, and health care reform, government efficiency and reform, job creation, and the list goes on and on," Schwarzenegger said. "But our first order of business is to solve the budget crisis."

Closing California's deficit will require billions in spending cuts. Schwarzenegger has ordered state workers to take two days off a month without pay, starting in February, while departments have been asked to take 10%, across-the-board cuts.

Public works projects have ground to a halt because the state no longer can pay for them, and teachers in some school districts have received layoff warnings as the state runs low on cash.

The sticking point in budget negotiations has been raising taxes. Schwarzenegger and Democrats have proposed raising a variety of taxes, but have not agreed on the form those should take. Legislative Republicans — a minority in both houses but powerful enough to block tax hikes — have refused any tax increase but have yet to show how they would cut $42 billion over the next two fiscal years to balance the budget.

The governor's latest budget plan proposes $17.4 billion in spending cuts, $14.3 billion in tax increases and $10 billion in borrowing to close the deficit through June 2010.

On Thursday, Schwarzenegger said lawmakers were engaged in "serious and good faith negotiations" but also criticized them. He said they were more devoted to party ideology than working for the people who elected them.

In the future, he said, lawmakers and the governor should not receive their salaries or daily expense money for each day they miss the constitutional June 15 deadline for producing a budget. Schwarzenegger, wealthy from his previous movie-star career, does not take a salary from the state.

"If the people's work is not getting done, the people's representatives should not get paid either. That is common sense in the real world," he said.
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You can post your comment about this article at the USA TODAY Online site, there are many about illegal immigration there now:

http://www.usatoday.com/news/nation/200 ... icit_N.htm

CALIFORNIA IMMIGRATION CRACKDOWN FOR BALANCED BUDGET

SACRAMENTO, CA (KGO) -- State lawmakers unveiled a package of 20 bills, aimed at saving money and balancing the state budget by targeting illegal ailens.

Assembly members want to chip away at the state deficit by checking the immigration status of those getting state-funded social benefits and jobs. They especially want to crackdown on those who have committed crimes.

"California is on a financial life raft that is sinking, but at the same time, we continue to pull on more and more people on board," said Assemblyman Jim Silva (R) of Huntington Beach.

Many of the proposals concentrate on criminal activity because in 2006 - 2007, it cost the state roughly $850,000,000 million dollars to incarcerate more than 17,000 illegal immigrants.

Among the proposals:
- Adding ten years to prison sentences for felonies if the illegal had been previously deported.
- Checking the immigration status of DUI offenders
- Requiring local law enforcement to cooperate with INS
- Denying bail for gang-related or violent crimes
- And reporting dangerous juveniles to Immigration and Customs Enforcement for deportation.

"To the extent we have criminal activity in our state, we should address it very, very vigorously" said state Senior Gil Cedillo (D) of Los Angeles, Vice-Chairman of the Latino Caucus.

"I think the law enforcement agencies in my city should be focused on crime and violence, which is starting to creep up," said San Francisco Mayor Gavin Newsom.

Assemblyman John Benoit(R) of Bermuda Dunes is a law enforcement veteran-turned politician, who says it's time cops are part of the solution.
"I have been involved in stopping, finding, and in some cases, deporting people here illegally. I think the rule of law is the reason the United States stands out among nations," said Assemblyman Benoit.

The federal government is supposed to help pay for jailing illegal immigrants who commit crimes, but California got reimbursed only $100,000,000 dollars last year, less than 13 percent of the actual costs.

http://abclocal.go.com:80/kgo/story?sec ... id=6042094

More empty words from that asinine Austrian and his merry band of reconquistas. Let's make Mexifornians suffer even more by cutting more benefits as medical care and other programs but continue to fund illegal alien health care. welfare, food stamps, in-state tuition, other benefits and ensure all work sites are fully manned by illegal aliens while citizens continue to join the unemployment lines. The insanity will end when the US becomes one large third world day labor center..........

The Governator is a big time illegal alien hugger.......giving them everything at the cost of CA taxpayers. He's getting his just desserts.

This so-called budget deficit is really more like a scam. The real deficit is between 7 and 8 billion. That is still a pretty big number. But the state has almost that much setting around in funds not being used for whatever reason. Why do they talk about a 42 billion dollar deficit when there isn't one? Because the politicians and the unions want to raise taxes so they can pay their members more and give gigantic contracts to pet businesses. The only real question is are we going to be dumb enough to give in to them?

Schwarzenegger warned that California, which would be the world's eighth-largest economy if it were a country,

CA used to have the worlds fifth largest economy, that's what happen when you bring in illegal labor your economy goes DOWN!!! Thanks for nothing Arnie.

Originally Posted by Bowman

Schwarzenegger warned that California, which would be the world's eighth-largest economy if it were a country,

CA used to have the worlds fifth largest economy, that's what happen when you bring in illegal labor your economy goes DOWN!!! Thanks for nothing Arnie.

California's economy didn't decrease, the economies of some countries increased enough to make them larger than California.

Govenator Numbnuts will go crying to the Feds for a loan, Obama will print more money.........Illegal aliens will continue to get their funds, more legal tax payers will move to other states creating massive revenue shortfalls, california will collapse, its that simple.

These so-called leaders of this state need to deeply examine where the money goes. I heard today on the radio, a woman who works for the state prison system said she often slept on the job and was paid. Plus I heard the prison guards earn triple digit salaries. The Unions are a lot of the problem, most the Dems are bought and paid for by them. Also heard we pay our teachers some of the highest salaries in the country but do test scores show how good the schools are doing??? Last I heard we rank around #49 in education and we once were a top state in that area. And having the most illegals, as in people who should not be here, is draining us also. If our tax dollars went where they are suppose to and spent wisely we wouldn't be in this mess. Infuriating how many things are wrong with this once wonderful state. Pounding on keyboard....grrr....

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