Thread: California Requests Billions From U.S.

By STU WOO and JIM CARLTON
SACRAMENTO, Calif. -- Republican Gov. Arnold Schwarzenegger asked for $6.9 billion in federal funds in his state-budget proposal Friday and warned that state health and welfare programs would be threatened without the emergency help.

Mr. Schwarzenegger's proposed $82.9 billion general-fund budget for the 2010-11 fiscal year would close a $19.9 billion gap over 18 months. In addition to the federal aid, he called for $8.5 billion in cuts and $4.5 billion in alternative funding to balance the budget.

"It's time to enact long-term reforms that will change the way the most populous state and the federal government work together," Mr. Schwarzenegger said. He and state legislative leaders plan to visit Washington to lobby for bailout money. White House budget officials weren't available for comment on the governor's request.

Mr. Schwarzenegger said that without the federal aid, he would propose cutting $4.6 billion from state assistance programs and raise another $2.4 billion, largely by extending the suspension of tax breaks.

The governor said California deserved the federal help because the state sends far more tax money to Washington than it receives in return. Federal mandates, he added, "force us to spend money that we do not have."

The budget proposal said the federal government should reimburse California $2.8 billion for costs related to the state's Medicaid program, as well as more than $1 billion for special-education spending and $2.1 billion in federal-stimulus money.

Mr. Schwarzenegger called the state legislature into a special budget session. He proposed cutting $2.4 billion from health and welfare spending and $1.2 billion from prison spending. He also called for cuts in salaries and pensions for state workers.

Republicans praised the plan. "It's a good first step," said Bob Dutton, vice chairman of the state Senate's budget committee.

State Senate President Darrell Steinberg, a Democrat, said: "I have one reaction: You've got to be kidding me." He and other legislative leaders said they opposed any more cuts to welfare and health programs. Instead, they said they preferred federal help or taxes on, for example, oil drilling and tobacco sales.

"These cuts would come at a bad time because there is growing demand from families who are struggling to make ends meet," said Jean Ross, executive director of the nonprofit California Budget Project, which studies policy impacts on the poor.

Mr. Schwarzenegger has been mired in a budget crisis for much of the past two years. California revenues have plunged amid double-digit unemployment and high foreclosure rates. The state has delayed billions of dollars of payments and issued IOUs to keep the government from defaulting.

The return of partisan statehouse clashes over the budget is likely to revive worries on Wall Street over the state's ability to resolve its fiscal troubles. "My concern at this point is that the negotiations could go on longer than the amount of cash the state has on hand," said Gabriel Petek, analyst at Standard & Poor's Corp., which has California on a negative ratings outlook.

A deeply divided legislature finally closed a cumulative $60 billion shortfall last year -- long after its budget deadline.

There are signs California is beginning to slowly emerge from recession. Housing sales have been growing for several months, and state Controller John Chiang on Thursday released his December cash report that showed the month's receipts rose above estimates by $481 million, or 5.7%.

"December receipts showed signs of improvement, but the state continues to face tremendous fiscal challenges," Mr. Chiang said. "At best, this is the beginning of a long and gradual recovery."

http://online.wsj.com/article/SB126297948893221947.html

Instead of bugging the U.S. gov't, Calif. should start bugging Mexico and Central American countries. Guaranteed that a large part of the budget deficit is due to the needs of their citizens here illegally.

Mr. Schwarzenegger's proposed $82.9 billion general-fund budget for the 2010-11 fiscal year would close a $19.9 billion gap over 18 months. In addition to the federal aid, he called for $8.5 billion in cuts and $4.5 billion in alternative funding to balance the budget.

And someone remind me again how much California spent on illegal invaders in fiscal year 2009? Wasn't it something like 15 billion??

Seems as if the illegal invader expenditure is directly related to California's economic crisis!

Originally Posted by NoBueno

Mr. Schwarzenegger's proposed $82.9 billion general-fund budget for the 2010-11 fiscal year would close a $19.9 billion gap over 18 months. In addition to the federal aid, he called for $8.5 billion in cuts and $4.5 billion in alternative funding to balance the budget.

And someone remind me again how much California spent on illegal invaders in fiscal year 2009? Wasn't it something like 15 billion??

Seems as if the illegal invader expenditure is directly related to California's economic crisis!

your right, NB, but still he refuses to blame the "immahgrahnts"...says it's a federal thing. I say it's a tax payer thing. If you live in CA and get the chance - vote with your feet and get out of here. Wish it was possible for us. Screw the weather (it's been a balmy 72 degrees during the day! )
I'd be outta here in a heartbeat if I could!

No more bailouts! California needs to weed out the illegal aliens and send them home. That will save them billions of dollars.

Originally Posted by SicNTiredInSoCal

Originally Posted by NoBueno

Mr. Schwarzenegger's proposed $82.9 billion general-fund budget for the 2010-11 fiscal year would close a $19.9 billion gap over 18 months. In addition to the federal aid, he called for $8.5 billion in cuts and $4.5 billion in alternative funding to balance the budget.

And someone remind me again how much California spent on illegal invaders in fiscal year 2009? Wasn't it something like 15 billion??

Seems as if the illegal invader expenditure is directly related to California's economic crisis!

your right, NB, but still he refuses to blame the "immahgrahnts"...says it's a federal thing. I say it's a tax payer thing. If you live in CA and get the chance - vote with your feet and get out of here. Wish it was possible for us. Screw the weather (it's been a balmy 72 degrees during the day! )
I'd be outta here in a heartbeat if I could!

Believe me when I say SNT that i'm currently seeking opportunities in other states! As a life long resident of California, I have witnessed first hand how this state went from first class, to a third-world toilet bowl over the past 25 years.

It's a shame I should have to leave my state of birth and life-long residence. However, the powers that be in this state have made their decision as to who they support, and it's not the American citizen!

It's the illegal invader from mexico!

Don't bail out CA!! Better to let the State go Bankrupt.