Thread: Schwarzenegger lays out bleak California budget

Schwarzenegger lays out bleak California budget

By JUDY LIN, Associated Press Writer
Friday, May 14, 2010 at 1:35 p.m.

SACRAMENTO, Calif.— Gov. Arnold Schwarzenegger on Friday called for eliminating California's welfare-to-work program, one of the deep cuts he proposed to close a $19 billion budget deficit in the coming fiscal year.

Slashing the welfare program would affect 1.4 million people, two-thirds of them children.

In releasing his revised budget plan, the Republican governor laid out the most severe cuts to health and welfare programs since the state tumbled into recession nearly three years ago. He said cuts to government services over the past few years have done away with the "low-hanging fruit."

"We now have to use the ax to eliminate some of those programs," he said.

The Republican governor announced his revised budget plan for the fiscal year that begins in July, as the state's 12.6 percent unemployment rate ranks among the highest in the nation and tax revenue remains low. In April, personal income tax was $3 billion less than projected.

The state's general fund spending will be $83.4 billion for the new fiscal year, the lowest level in six years. The deficit accounts for more than 20 percent of all projected spending.

Among the options Schwarzenegger presented is eliminating CalWORKS, the state's welfare-to-work program. In part, the program helps single mothers find child care while they go to school to learn new skills.

The governor and Republican lawmakers have vowed not to raise taxes, as the Legislature did last year, ensuring that spending cuts will be the main solution. That could leave single mothers, foster youth, children from low-income families, the disabled and seniors who rely on state services feeling most of the pain from the recession's continued effects on California government.

"We are left with nothing but tough choices, as you can see," said Schwarzenegger, who appeared somber and at times frustrated in presenting his updated budget plan.

http://www.signonsandiego.com/news/2010 ... ia-budget/

A lot of anchor babies with non-working mothers are going to loose their welfare.

The EU has been adding on socialist handout programs for many years now. Recently they started cutting a lot of them because they are going broke.Now California who also have added many new progressive programs over the last 20 years is going the same way for the same reason.Mr. Obama please look at europe and california before you hoist more beurocracy and socialist programs upon us.

Originally Posted by Rebelrouser

:? The EU has been adding on socialist handout programs for many years now. Recently they started cutting a lot of them because they are going broke.Now California who also have added many new progressive programs over the last 20 years is going the same way for the same reason.Mr. Obama please look at europe and california before you hoist more beurocracy and socialist programs upon us.

Welfare is a FEDERAL program administered by the states.
The federal government makes the rules as to who MUST receive welfare. If any state doesn't follow the federal rules they loose all of their welfare money.

Following the 1930s, federal programs were established that provided additional welfare benefits, including medical care (MEDICAID), public housing, food stamps, and Supplemental Security Income (SSI).

Read more: Welfare - Federal Social Security Programs, A Brief History Of Welfare Reform, Food And Food Stamps, Public Housing http://law.jrank.org/pages/11271/Welfar ... z0nwRmCgxy


Welfare - Federal Social Security Programs, A Brief History Of ...
Providing welfare benefits has been controversial throughout U.S. history. ... These state efforts paved the way for radical changes in federal welfare law. ... separate plans previously administered by the states for these recipients. ...
law.jrank.org/pages/11271/Welfare.html

Governor's spending plan cuts welfare, boosts colleges
Marisa Lagos, Chronicle Sacramento Bureau

Friday, May 14, 2010

California would eliminate its welfare program, most state-subsidized child care and make deep cuts to prison spending, health care and human services programs under the governor's revised budget proposal unveiled today.
Gov. Arnold Schwarzenegger said the budget plan - which he said includes no tax increases - reflects the dearth of options left to the state. He also revised the projected deficit from $20 billion to $19 billion.

But while there were many proposed cuts, the governor did proposed increasing funds for the University of California, California State University system and community colleges, saying the money should help stop tuition hikes. He also plans to fully fund parks.

He said the state has tackled all the "low, middle and high hanging fruit," and must now "take the ladder away from the tree and shake the whole tree."
And he warned that he will not sign a budget unless the Legislature tackles reforms of the state's tax, pension and budget systems that he blamed for the current woes.

"I believe a budget should be a reflection of what we in California value most, and what my administration stands for, in good times and in bad," he said. "It should still provide a safety net for our most vulnerable citizens, but we are not because our budget system is broken. I now have no choice but to stand here today and call for the elimination of some important programs."

In addition to eliminating CalWORKS, the state welfare program that serves 1.4 million people - two-thirds of them children - Schwarzenegger's proposal includes the elimination of all child care programs except after school and preschool programs. That program subsidizes child care for about 142,000 children.

The governor's plan would also shift a number of costs to counties and cities. He is proposing a 60 percent cut to community mental health programs. That $435 million in costs would fall to counties. And he wants to move 15,000 state prisoners to local jails to save $244 million. The budget also includes a $750 million cut to the In Home Supportive Services program, which provides home care to 430,000 elderly, sick or disabled Californians and employs 376,000 people.

CalGrants, the state's popular college assistance program, would be left intact under the proposal. But recipients of many public health programs would see their services shrink and costs increase under the proposal.

The budget was immediately praised by Republicans and anti-tax groups but slammed by Democrats, public unions and those who rely on health and human services.

"With today's revision of the state budget, Gov. Schwarzenegger has accelerated his slash-and-burn cuts to vital services into an all-out scorched earth campaign," said California Labor Federation Executive Secretary-Treasurer Art Pulaski in a written statement. " At a time when joblessness and recession continue to batter California families, the devastating cuts the Governor proposes would choke off any hope of economic recovery."

But Assembly Republican Leader Martin Garrick, D-Carlsbad, praised the proposal as a "serious spending plan that prioritizes funding and makes difficult but necessary decisions."

http://www.sfgate.com/cgi-bin/article.c ... .DTL&tsp=1

Reaction to Schwarzenegger's revised budget

By The Associated Press, None

Friday, May 14, 2010 at 5:21 p.m.

Reactions to Gov. Arnold Schwarzenegger's revised budget proposal for the 2010-11 fiscal year:

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"If this reflects the vision and values of the governor of the state, we are in trouble. To tell 500,000 families that they should be homeless in lieu of tax breaks is just sort of an anomaly that is hard to understand." -

Senate Budget Chairwoman Denise Ducheny, D-San Diego.

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"This lean budget proposal has something for everyone to hate, but you can't spend what you don't have." -

Sen. Bob Huff, R-Diamond Bar.

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"The governor's suggestions are clearly more reflective of a hyper-partisan political agenda than in finding real solutions to our problems. Putting Californians back to work is the fundamental priority for Californians, and we do not have the luxury of another bruising summer of ideological warfare." -

Assembly Speaker John Perez, D-Los Angeles.

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"This budget reflects decades of overspending on entitlement programs and gold-plated state worker benefits, a failure to address fraud in social services and a complete avoidance of responsibility for the long-term health of our state. The public employee unions and Democrat lawmakers howling about proposed cuts should look no farther than the nearest mirror for the cause of this crisis." -

Assemblyman Chuck DeVore, R-Irvine, who is seeking the Republican nomination for U.S. Senate.

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"California's budget focus must shift from extracting dollars from families and employers to putting people back to work in high-wage jobs. Everyone wins when more Californians are working." -

California Manufacturers & Technology Association president, Jack Stewart.

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"When you propose to lay off teachers, close domestic violence shelters and take away critical social services and health care, there is no doubt you have a revenue problem. I have opposed and will continue to oppose all budgets that are balanced on the backs of our students, elderly and working poor." -

Sen. Leland Yee, D-San Francisco.

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"The state's fiscal problems are a direct result of the Legislature's failure to help the small-business community of California that creates the bulk of jobs in the private sector. Until we get serious about job creation in the private sector, California's fiscal problems will continue." -

Sen. Bob Dutton, R-Rancho Cucamonga, vice chairman of Senate Budget Committee.

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"The governor's proposals cut far past the muscle and into the bones of our state's safety net - the health care, job placement, child care assistance, and other services Californians have turned to in greater numbers for help during the recent downturn." -

Jean Ross, executive director of the California Budget Project.

http://www.signonsandiego.com/news/2010 ... ed-budget/

California would be only state without welfare-to-work program

http://www.sacbee.com/2010/05/15/275232 ... z0o1DxeT12