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Schwarzenegger declares budget emergency in California

Discussion in 'Political Discussion' started by DisgruntledTunaFan, Jan 8, 2010.

  1. DisgruntledTunaFan

    DisgruntledTunaFan Rookie

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    Schwarzenegger declares budget emergency in California - Politics AP - MiamiHerald.com

    Gov. Arnold Schwarzenegger unveiled an $82.9 billion state spending plan today that calls for no tax hikes but envisions pay cuts for state workers, reductions in services to California's neediest residents - and on the benevolence of the federal government.

    The governor also declared yet another fiscal emergency, and called for yet another special session of the Legislature, designed to keep a projected $19.9 billion budget deficit from growing by another $2.4 billion.

    "We must begin our work immediately," Schwarzenegger said in his message to legislators. "If we fail to take action in the special session that I have called, our problem will only grow, and the decisions that will be required to make up for lost savings will grow even more difficult than those now before us."

    • Temporary increases of sales and income taxes that were approved last year by the governor and lawmakers would be allowed to expire on June 30 and December 31, respectively. Last May, voters rejected proposals to extend the 1-cent sales tax hike and 0.25 percent income tax until 2012.

    • The state's current 6 percent sales tax on a gallon of gasoline would be dropped, and replaced by a 10.8-cent increase in per-gallon excise taxes. Administration officials estimate the overall impact would be a 6-cent-per-gallon reduction in gas prices. The seemingly arcane switch would allow the state to legally cut the money it must currently pay to local governments for transportation programs, and to schools. That's because the sales tax revenues from gasoline are part of voter-approved formulas that determine how much the transportation and schools get from the state.

    • About 200,000 state employees who currently must take three unpaid days off each month - equivalent to a 14 percent pay cut - would go back to work full time. But the furloughs would be replaced by a 5 percent pay cut; a 5 percent increase in contributions to retirement plans and a directive to all state departments to cut overall payroll costs by 5 percent through layoffs, attrition or hiring people at lower salaries.

    • Spending on most elementary and high school programs would be kept at current levels. But a $1.2 billion cut would be sought in school district level administration. None of the cuts could be shifted to classroom reductions.

    • The fastest-growing segment of state spending over the past decade - prisons - would be cut by $1.2 billion, most of it through reducing medical costs to prisoners. That could trigger even more legal battles with federal judges and a court-appointed federal receiver who are overseeing California's prison health system.

    • Funding for Medi-Cal and services to Californians whose ability to care for themselves is limited would be reduced.

    • Nearly $7 billion in federal funds are counted on to help balance the budget, including increases in money for health care and paying for undocumented immigrants in state prisons. If the feds don't come through with the extra money - and indications are that they are not likely to - social service and health programs from CalWORKS (the state's welfare-to-work program) to Healthy Families (which provides medical insurance to children of low-income families) would be eliminated or severely slashed.

    Read the complete story at sacbee.com
  2. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    Hopefully this will work. As I have said before, I am willing to pay more taxes if spending is reduced so it's a real program to fix the problems. But increased taxes just to support more and more spending isn't going to ever get my vote.
  3. Real World

    Real World Moderator Staff Member

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    The state needs to collapse. It needs to go bankrupt. It's the only way a true correction will ever occur there. Let California be a warning to all the other states, and to the fed.
  4. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    The theme of prisons once again rears its ugly head, the 3 strikes rule and its unintended consequences, but there are plenty of atta boys to go around.... no one talks about the legacy costs of these systems...
  5. BelichickFan

    BelichickFan B.O. = Fugazi PatsFans.com Supporter

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    #24 Jersey

    I'm not thrilled about repeat offenders being out on the streets either. Taking a good look at how it costs so much per prisoner is another option.
  6. Real World

    Real World Moderator Staff Member

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    We need to start hanging people publically, like they did in the wild west. Public hangings would make people think twice about committing heinous crimes, and last I checked, 20' of rope is alot cheaper than a lifetime in prison. Oh, and I almost forgot. Think of the money that could be raised if the hangings were televised, and advertising slots were sold. cha-ching!
  7. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    As everybody probably knows "I'll go along with that"
  8. fleabassist1

    fleabassist1 Rookie

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    #12 Jersey

    As the great Maynard James Keenan once said...

    "The only way to fix it is to flush it all away.. Any f*****g time. Any f*****g day.
    Learn to swim, I'll see you down in Arizona bay."
  9. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey


    atta boy Harry ... I'm with you ... let's send them some rope.
  10. efin98

    efin98 Rookie

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    But but but it's cruel! It's inhumane! It's against the Constitution! What about their rights! :rolleyes:

    What about the rights of murders! :rolleyes:


    Won't be long until someone trots out the tired old statistics claiming it's not a deterrent to criminals and that if they have nothing to lose they will do worse than they would otherwise do since they have nothing to fear anyway etc. etc. etc. :rolleyes:

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