Schwarzenegger: Immigrants not cause of budget woe

By MICHAEL R. BLOOD, The Associated Press
8:53 p.m. April 15, 2009

LOS ANGELES — Gov. Arnold Schwarzenegger said Wednesday that health care and other services for illegal immigrants cost California taxpayers as much as $6 billion a year, but that's not the reason for the state's financial mess.

While acknowledging the huge burden that comes with millions of illegal residents, the governor said the source of a $42 billion budget hole is a broken system in Sacramento. He urged voters to support six ballot proposals in next month's special election that he says will repair it.

At an appearance at the Los Angeles Times, the Republican governor estimated that education and other services for illegal immigrants could carry a $4 billion to $6 billion price tag each year.

But to place blame there for the ongoing budget mess – or any other single factor – "would be the wrong thing," he said.

He added that Washington holds the power to resolve immigration issues, not California, and comprehensive reform is on President Barack Obama's agenda.

Schwarzenegger is trying to sell skeptical voters a sextet of ballot proposals that are the heart of a Sacramento deal to increase taxes, slash spending and borrow to fill the record budget gap. The agreement also includes hundreds of millions of dollars in corporate tax breaks.

Surveys show voters uneasy with much of the plan. The sinking approval ratings of the governor and Legislature, paired with resentment about higher taxes on the middle class, will make his job more difficult.

Thousands of protesters were at the Capitol on Wednesday calling for the defeat of the centerpiece, known as Proposition 1A, which would extending sales and income tax increases while creating a state spending cap and strengthening a special fund the state could dip into during financial emergencies.

Schwarzenegger referred to the sour mood of voters, but said the ballot package would set the stage for a more prosperous future and an end to the boom-and-bust cycles in Sacramento that typically end with tax increases and spending cuts. He disputed that the plan would cut funds for mental health services.

"It's a very bad time now. People are angry in general," he said.

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