Thread: California & Indiana Governors To Unveil Cuts On Tuesday

Gov Schwarzenegger to Unveil New State Budget Cuts Tuesday

6/1/2009

Governor Schwarzenegger on Tuesday plans to address a joint session of the California Legislature, to update his efforts to deal with the state's projected $24-billion budget deficit. Previously announced reductions include another $680-million less for schools, plus further cuts for in-home care and children's health programs. Schwarzenegger has also proposed a 5-percent pay cut for some 235-thousand state workers who are already being forced to stay home two days each month without pay.

(CA. may cut all school buses, sports activities, art and music classes, bands, etc.)

http://www.ksro.com/LocalNews/Story.aspx?ID=1098580
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Indiana Gov. Mitch 'The Blade' Daniels brandishes sword Tuesday

By Patrick Guinane
patrick.guinane@nwi.com, (317) 637-9078 | Monday, June 01, 2009 | (39 comment(s))

INDIANAPOLIS | The conservative punditocracy of late has been fawning over the former federal budget director once dubbed "The Blade."

But Northwest Indiana interests more likely will be fuming when Gov. Mitch Daniels -- or his chosen emissary -- goes before state lawmakers Tuesday to deliver a blueprint for the next two-year state budget.

Daniels, wielding a samurai sword in a caricature of himself gracing the June cover of the conservative magazine, "National Review," is at war with majority Indiana House Democrats over state spending. And there could be plenty of casualties.

After all, the budget proposal the Republican governor offered in January would have more than cut in half funding for English-as-a-second-language programs that provide more than $500,000 a year to schools in Hammond, East Chicago and Portage.

Per-pupil state funding for local schools would have been frozen at current levels. State universities faced 4-percent cuts. And the panel responsible for building Little Calumet River flood-protection levees was in line for only $2 million of the $13.5 million needed to complete the two-decade-old project.

To some, it seemed the only item not facing the blade was the $1.3 billion the state holds in reserve funds. Heading into a budget-writing special session of the General Assembly, the surplus remains a target for Democrats and a source of pride and security for Daniels.

"We're one of the few (states) that has not raised taxes and that still has a healthy reserve fund to protect taxpayers against any increase," Daniels said Friday. "The budget we'll present next week will preserve Indiana's special position as a place of fiscal prudence and security."

However, school officials argue that flatlining education, as the governor previously proposed, amounts to a cut for school corporations juggling inflationary increases in insurance, utilities and labor costs.

"Flat line is a real cut. It's a loss of funding," said Merrillville schools Superintendent Tony Lux. "I don't know what you're saving the surplus for. Everybody knows it's the next two years that are the problem."

After school funding, debt-financed construction projects labeled "job creation" are a top priority for Democrats.

The legislative budget plan that failed in late April included $33 million to replace Tamarack Hall, the Indiana University Northwest theater building ruined by fall flooding. But Daniels previously proposed a near-moratorium on new projects.

"We have placed Tamarack Hall at the top of our priority list," said IU spokesman Larry McIntyre. "The building is a disaster, and we've got to do something with it. It's our hope that somehow we'll find an acceptable way to replace that building in the state's (next) budget cycle. It's just a huge crying need."

Indiana's public broadcasting stations, including Lakeshore Public Television (Channel 56), also hope the governor reverses his push to cancel their $3.5 million annual state subsidy. The failed legislative budget would have provided $3.2 million, an 8 percent reduction on par with state agency cuts.

"Both sides of the aisle, both chambers of the General Assembly are very supportive of public broadcasting here in Indiana," Lakeshore CEO Thomas Carroll said. "It's my hope that the governor will see that and essentially do the right thing."

In January, Republican Gov. Mitch Daniels proposed an austere, $28.3 billion, two-year state budget that provided no increase in school funding and suggested a litany of cuts elsewhere. That was before state tax collection really began to tank -- they're down about 7.5 percent from last year -- and before Indiana knew it would have about $2 billion in federal stimulus money to inject into the state budget.

With a budget accord having failed last month on the final night of the four-month legislative session, Daniels will go before lawmakers Tuesday to present a spending blueprint to shape the budget-writing special session of the General Assembly expected to start June 15.

http://www.nwi.com/articles/2009/06/01/ ... 78980a.txt

Two republican governors.....one a real republican with common sense, and the other a rino with NO common sense.

Originally Posted by CitizenJustice

Two republican governors.....one a real republican with common sense, and the other a rino with NO common sense.

And they both start their cuts with the schools ?

Governor sees pain, promise in budget crisis

'Opportunities' ahead despite cuts, he tells Legislature

By Steve Wiegand
MCT NEWS SERVICE
2:00 a.m. June 3, 2009

SACRAMENTO – Declaring that “California's day of reckoning is here,â€

The 2 most powerful groups in California are the Prison Guards Union and the Teachers Union. Neither cares what anything cost as long as it benefits their members.

That's why he wants to switch to private prisons. Cut the money and the power of the Prison Guards Union.

The school money has to be cut to take away some of the power of the Teachers Union.

The Teachers Union wants the illegal aliens to stay in the state so that the teachers have more jobs teaching them, ESL classes, etc.

Message from William, Please read!

http://www.alipac.us/ftopict-158152.html

Hot Seat: Christine Kehoe
2:00 a.m. June 3, 2009

Sen. Christine Kehoe, D-San Diego took, our questions on the state budget crisis.

What do you think was the main message of the May 19 special election vote: that Sacramento needs to live within its means or that Sacramento needs to overhaul how it adopts budgets?

I believe that there are many different explanations for the vote – not one main message, but several mixed messages. Some voters clearly want less spending. Others want programs protected. Still others want the budget process reformed. And finally, the vast majority, over 80 percent of our eligible voters, expressed their views by staying home entirely. Regardless of the message, action must be taken now by the Legislature to reduce spending immediately. We must do so for two critical reasons: 1) to avoid a cash crisis in July that would result in stopping construction projects that are already under way, and 2) to prevent a cash crisis that would us make us unable to sell our bonds on Wall Street. Either eventuality would paralyze California.

Under what circumstances would you agree to additional increases in state taxes?

The voters expect us to make due with the money we have. Our near-term goal is to reduce spending in order to prevent the deficit from growing. State revenues are $25 billion lower right now than they were last year at this time. So first, and foremost, we must reduce spending. Our goal is to accomplish that by July 1. At that time we will have an accurate measure of our true cash flow.

Former Legislative Analyst Elizabeth Hill used to complain that the Legislature saw all state programs as of equal value and didn't set priorities. Do you buy this critique?

Both philosophically, and statutorily, certain programs and services, such as our K-12 public education system, receive priority for state funding. California is a diverse state, and the members of the Legislature reflect that diversity. Rural legislators will fight to protect the interest of their constituents, just as fiercely as those who represent cities will fight for services for their constituents. State beach lifeguards and adequate fire protection for East County that are critical to San Diegans, are of little importance to the residents of the San Francisco Bay Area. We were each elected to represent the various interests of our communities, and we would be remiss if our work didn't reflect the needs, demands and priorities of our cities and counties.

Is hope of some sort of federal bailout of California realistic? Is such hope leading lawmakers to delay making tough decisions?

The state budget was adopted in February, nearly five months before our constitutional deadline. Tough decisions were made then, and more are being made now as the economy worsens. No one is waiting for a federal bailout, nor do we have illusions about receiving federal money. High unemployment and the housing crisis have led to a severe decrease in income tax, sales tax and property tax revenue. We are working diligently to address the needs of the state within the constraints of the current economic reality. We expect to reach final agreement on cuts by the end of the month.


http://www3.signonsandiego.com/stories/ ... ?uniontrib