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Governor signs budget, cuts additional $489 million
July 28th, 2009, 12:43 pm · 53 Comments · posted by BRIAN JOSEPH, Sacramento Correspondent
Ending California’s latest fiscal crisis, Gov. Arnold Schwarzenegger signed the budget this morning, but used his line-item veto authority to cut an additional $489 million in spending.
Schwarzenegger said the additional cuts were necessary because the State Assembly did not approve an oil project and the borrowing of local gas tax funds, two key components of a budget agreement worked out by the governor and leaders of the Legislature. Without those measures, the budget fix approved by the Legislature was $156 million in the red.
Through the vetoes and savings from the previous year, the new budget now has an emergency reserve of $500 million — “skimpy” as Finance Director Mike Genest described it, but better than nothing.
The additional cuts centered mainly around social programs, some of which are administered by the county, meaning the county may end up footing the bill for some expenses the state once covered.
We’ll be posting a full story on the budget signing soon.
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DENA BUNIS, Washington bureau chief, 202-628-6381 or dbunis@ocregister.com
BRIAN JOSEPH, Sacramento correspondent, 916-449-6046 or bjoseph@ocregister.com
JENNIFER MUIR, County government reporter, 714-796-7813 or jmuir@ocregister.com
JOEL WALSH, Washington bureau intern, 202-628-6381 or jwalsh@ocregister.com
MARTIN WISCKOL, Politics reporter, 714-285-2867 or mwisckol@ocregister.com twitter.com/MartinWisckol
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so Sad so Sad we need to really get people in office who work for us. there are people who are mentally ill there meds will be cut what is sad some people without there meds are suicidal and others are so psychotic they will kill with out there meds not that government really cares they dont. They cut from the poorest and some of the people who need help the most instead of cutting from the top down. Just very sad. Hey they dont care they have all the money they need.
Margaret, I understand your feelings, but to be realistic the well-to-do residents of this state do not receive state handouts, so there is nothing there to cut.
It is sad that the legislature failed to address the real issue, that is they continue to budget expenses that exceed current revenues with hopes that the economy turns around. The prudent thing to do would to budget for less expenses than projected revenue, and build up a reserve. When revenue streams continue to dwindle, the ensuing budgets must also get smaller. This is not a foreign concept to private enterprise, and should not be a foreign concept to government either.
You can’t keep taxing the upper class to support the pet projects of a few. This will drive even more business from our state, and the problem (decreasing revenue) will worsen.
That’s where you are wrong TimP, they do get state handouts in massive tax cuts, special laws and it’s proven that the richest use the most government resources from the courts to our infrastructure.
This is the BS you’ve been fed but there’s a reason why people use the phrase “Corporate welfare”.
Someone making $50,000 pays the same rate as someone making $900,000. Raise the taxes to where it was when Reagan was Governor. Is that extreme? I didn’t think so, both Wilson and Reagan raised taxes during recessions. And it’s a myth that people are fleeing the State.
is that why company after company continues to leave CA, taking all the jobs with them never to return? the low taxes, “massive tax cuts”, “special laws” and feeding of the rich?
c’mon……… over 30% of the people in this state are on welfare!! many of which do not even have legal residency status.
Margaret…if you are so worried about the needy contribute to charities don’t steal from someone else to pay for what you think should be done.
ALL the MORE reason why we need to solve the current illegal immigration problem! That way OUR tax paying citizens and loved one will not have to suffer anymore.
My girlfriend though her job was safe on Friday, but found out today that with the line item cuts to social services, her agency no longer exists. Thanks Arnie!
My job was cut because the taxes on businesses were so abusive. Thank you socialist democrats.
But at least Arnold finally is acting the way he should have 5 years ago.
Sorry, if that was the reason you were given when losing your job, you were lied too. The lack of demand is what causes people to lose jobs NOT TAXES.
you really do not understand Economics 101 with your oversimplified view of the world (which really isn’t all that complicated, but yet you’re just not grasping why the state is broke).
back to school for you.
I agree Arnold is just finally starting to “get it”. but just a little. and it’s almost too little too late…
No need to thank Arnold from afar, as I am sure there are numerous illegal residents and their wealthy employers, right within your own neighborhood, you can thank in person!
GOOD!!!!! MORE PLEASE…..
Oh come on Margaret. I’m so tire of people thinking that people that earn money should be robbed so people that don’t can benefit.
This is what Charity is for. The government shouldn not be taking money from private citizens and playing Robin Hood. We have many charitable organizations and individuals in this country that will gladly help the truly needy.
If these cuts bother you so much Margaret no one is stopping you from donating as much of your own money as you like.
Maybe some of these people who receive government assistance will be motivated to get a job. Time to sink or swim people and control your own destiny!
These cuts to social programs are going to effect so many people. What a shame. CA kind of stinks right now.
Cmon: Don’t be so hasty. Wait until something happens to you one day and you are in need of these social services. You talk like that because you are clueless. Have a heart and think first before you say that kind of dumb thing. I work full time, pay taxes, and still need these programs.
I’m mad, my employers have been paying into the state unemployment fund for the past 20 years. and yet our unemployment program is totally broke. if I was laid off tomorrow, there would be no state funds to pay me to look for another job.
yes that makes me mad. and no I’ll never need WIC or free school lunches for illegals or anything else like that. they all need to be cut sharply.
They don’t need to be cut sharply; they need to be outright eliminated. Why should people get these free services when they’re not even supposed to be here?
Sell crazy somewhere else we’re all stocked up here
In order to treat an addict you must cut off the supply. Unfortunately, it has taken the worst financial situation anyone under the age of 70 can remember to cut off the money supply of the “spendaholics” in Sacramento…..with severe collateral damage to many citizens.
I agree with Cmon, there is a point when people need to provide for themselves and stop taking advantage of the system. Unfortunately our state is being drained by illegals in our jail system and those who are recieving social services that should not be allowed to benifit from. Social services were meant to be for legal tax paying citizens who have fallen on bad times not freeloaders! They are also meant to help those who have been stricken with diabilites but sadly the system has failed because all of those who take advantage of it. If we deported all the illegals that are in our jails(hello they are criminals why should we take care of them) and those that are taking advatage of our social services our state would save millions maybe even billions in the long run. All you bleeding heart liberals can call racism or say that I am heartless but I just call it like it is if you don’t like living in CA, there are 49 other states to choose from, but why stop there you could even go to Mexico. I am sure they would love to have you.
I only hope that you are not teaching your two boys how to spell.
Or basic grammar!
These cuts are going to impact everyone, no matter what your status. If you need medical attention and can’t afford it, sorry!! If you don’t like the parolee hanging out on the corner, sorry!! If that pot hole doesn;t get fixed, sorry!!
Californians can’t live the life style they have come to expect unless they are willing to pay for it. And not just at the state level. The state will take what they want, just like they did with this budget, and the cities and counties will have to adjust. If you think the cuts to the OCSD are bad, wait till next year when the cuts affect the patrolman on the street.
And what’s going to happen to Fire Protection. Some cities are closing stations this year. How long will you have to wait for emergency medical attention next year. and guess what, it’s not going to matter whether you live in Coto, or the poorest section of Santa Ana.
But this is what the citizens of California voted for, and this is what the result is.
I worked for the State for years. I’ll let you in on a secret. Half of the people do NOTHING but sit around and play games on their computers. The other half work their asses off. If we get rid of the 50% we can stretch the dollars a long way.
Also, that argument is stale. This is what they said when there was welfare reform. “We will have homeless lining the streets!” It turns out most of the people ended up getting jobs and contributing to society.
AMEN!!!!!!!
I would like to see the local police go out and do their jobs - ticket the idiots and raise revenue. They could pay for themselves and the fire fighters.
As for medical - talk to the people setting the prices not to the people paying the taxes. Show me some “real” savings and some real control over who is getting what and then maybe we can start talking about if we (those who pay taxes) are giving enough.
…And what is even sadder is; all of what you mention “medical attention, parolee hanging out on the corner, pot holes, etc” were still major problems even when we HAD money in this state.
To be honust with you, I am not even sure what my state tax dollars go to pay for in this sorry state?
agreed… I think about our crappy a** streets, and potholes messing up my perfectly good cars and we have the HIGHEST taxes in the nation. what gives!! we’re becoming Mexico I tell you.
in 5 years our worst streets will just be dirt and they’ll say “too bad deal with it, and oh by the way the sales tax just went up again and next year your income tax will be 2 percentage points higher to pay for newer textbooks that have a chapter about Obama”
Momof2boys, watch an episode of COPS!! Its not illegals that are draining our system, it’s the white and black trash of this country.
Really?…
“The cost of incarcerating illegal aliens in California’s prisons and jails amounts to about $1.4 billion a year (not including related law enforcement and judicial expenditures or the monetary costs of the crimes that led to their incarceration).”
racist much? and by the way, you’re wrong. go visit our central jails and see who’s there…
$13 Billion annually is spent in California for services to Illegal Aliens. Until Federal Law is changed, we are required to provide “Emergency” medical, and “Free” Education to Illegal Aliens.
Of course this is taken advantage of by some - as they flood hospitals with “Non-Emergency” medical requests and current law requires hospitals to treat them for “Free”. It was only a matter of time before this came back to bite us, and bite it has, big-time.
Time to Change the 14th Amendment to remove the Anchor Baby clause - and then change Federal Law as to what a U.S. Taxpayer’s dollars are required to pay for. My tax dollars should not be given away to criminals that enter this country illegally.
No, it’s time that businesses were fined for hiring undocumented workers. NO jobs, no reason to come here and use those services. But no one has the political courage to do that because we all like paying less for our stuff and no one wants to pay more.
So you think even now companies already downsized workers, or moved away from California, unemployed illegal immigrants would pack up and go back to their homeland ?
CA Native - it is quite obvious that you are some tool associated with a political agenda - let me guess, you work for the government. You certainly rehashed the same old lame talking points. Everyone can see through the scare tactics of “people dying” due to lack of fire protection or police. You claim these will be cut, but we all know that they never will. By the way, COPS isn’t exactly an accurate reference point when you are comparing the real world, are you kidding me? You blame the “white and black trash of this country” for our fiscal woes - while you are wrong to blame them entirely, at least they are legally supposed to be here. Go back to your cubicle and spend all of your time planning for that big fat taxpayer paid pension. We taxpayers are bleeding to support you leeches. You and your ilk are sinking this great state.
well i think they should stop giving illegals a free pass on everything. from healthcare to education. also stop with all these welfare cr@p taht is tanking cali. and for all these morons that will come at me with the race card i am mexican. sorry but the truth hurts.
Yup…
“The more than $10.1 billion in costs incurred by California taxpayers is composed of outlays in the following areas…
-Education. Based on estimates of the illegal immigrant population in California and documented costs of K-12 schooling, Californians spend approximately $7.7 billion annually on education for illegal immigrant children and for their U.S.-born siblings. Nearly 15 percent of the K-12 public school students in California are children of illegal aliens.
-Health care. Uncompensated medical outlays for health care provided to the state’s illegal alien population amount to about $1.4 billion a year.
-Incarceration. The cost of incarcerating illegal aliens in California’s prisons and jails amounts to about $1.4 billion a year (not including related law enforcement and judicial expenditures or the monetary costs of the crimes that led to their incarceration).”
Good, we need some blood letting in the budget. When I was a child to a single working mother and two siblings, we were told making $28K gross a year didn’t make us poor enough to get any public assistance (early 1980’s). Believe me, we ate a lot of mac and cheese, and I’ve been working jobs since age 13. No sports and weekend parties for me as a teenager, I was working and giving the money back to my family. I don’t need sypmathy - I’m proud of the experience and how it formed me. Now I’m 35 and I don’t have any sympathy for people who won’t do (repeat won’t do) for themselves and expect my paycheck to take care of them. As others have said, this is what charity is meant to address.
I’m afraid things are going to get much worse before they get better. Unfortunately this is only the beginning of a very sad and tragic story for California and America.
The budget 5 years ago was 30% less than it is now. The population has been stagnant. Why do we need 30% more spending now than 5 years ago? These clowns just spend and spend and spend. What right do you have to take someone else’s property? I pay $6,000 in prop taxes for a $350k home and they are scheming of ways to get around or rid of prop 13. WTF! These leeches need to be exterminated. Every time we turn around there are taxes. They pummel the “rich oil companies” all the while the government has a gas tax on every gallon and then turns around and takes over 50% of what they earn in income taxes. Give me a break.
I agree that there is a need for social services but the system in California is broken.
Sacramento has taken the short cut of taxing, taxing, taxing for decades now to fund the “New Elite” that is the state workers and the illegals while the middle class suffers and carries the tax burdens of the state. And I wouldn’t even mind that if the taxes reflected population growth and inflation. But these taxes have far exceeded population growth and inflation in this state.
The rich can just move (themselves and their businesses) to a tax friendly state while keeping a “summer house” here. It’s no skin of their backs. They have an army of accountants on their side to shelter their wealth.
Quoting Winston Churchill, you cannot tax and spend your way into prosperity.
These cuts are a start but this is only the tip of the iceberg.
Sacramento is still playing their 3 card monty game. Let’s do some nominal cuts here, and 3 days of furlough there, but we’ll just borrow the rest from the local municipalities, towns, and cities to make ends meet.
What’s really sad are all the dumb uninformed voters that vote in the same types of clowns into office blindly towing the party lines.
nailed it!!!!!!!
I think we should cut more so the lazy people will have to stop complaining and get a job
I’ll say it again…start charging an admission fee to enter the U.S. at ALL state border crossings. 50 million people ENTER Calif. every year at the San Ysidro (Tijuana) border. 17 million commercial vehicles enter Calif. yearly. This would be like a co-pay I pay my doctor for each and every visit. How about $20 per person and $40 for each commercial vehicle for starters……many use our services so pay up front. No more ‘freebies’. Hey, this is the ‘ land of the free’. ..NOT ‘the land of free admission’. Won’t cost taxpayers a dime. If you agree tell your congressman….I did !
To myagusta,
I sure hope you or you family never experiences a life altering illness or injury. Come back and see me in a year. You are quick to attack, but why not take some of that anger a figure out hw we’re going to fix our state. It’s real easy to sit in the comfort of your home and insult anybody that doesn’t agree with you, but the hard part is making the change you believe in.
Like I said earlier, We’ve been a welfare state for well over 30 years and it’s time to fix it. The problem is that the politicians still aren’t ready to make the change. That’s obvious by loooking at the budget they just passed.
And don’t talk about bleeding heart liberals because in 30 years we’ve had all kinds running the state; both Republicans and Democrats; Liberals and Conservatives, Right wing and left!!
And no, I don’t work for the state. I’ve only lived in it for 57 years…….
RHINO - Republican in Name only… Grey Davis - Dem. when was the last time we had a Ronald Reagan running this state?? oh yeah, Ronald Reagan.
Consider all those initiatives on the ballot that everyone voted for. Geez, how do you suppose they get paid for…taxes, taxes, taxes. Voters are as much to blame as the politicians. Who approved the initiatives and who voted these liberal idiots into office?
Yup…you got it.
As a native born Californian I think what has happened to my State is so sad. The problem is a revenue problem. You could cut every program and not fix the budget. Swatzenegger and the post Reagan GOP has ruined us. Even Reagan had a heart. For all that talk about sending the illegals home I say fine but you go too! If you were not born in California then get out! Go back to Ohio, Arizona, or where ever you came from as well. We need to raise revenue pure and simple. Tax big oil, revisit prop 13 and eliminate corporations from that. Legalize marijuana. Time for California to return when the OC were just sleepy beach towns.
I will agree with you on one thing… Legalize marijuana.
idiotic. tax, tax, tax… that’s all you can think of? how about CUT SPENDING. THEY HAVE NOT EVEN BEGUN TO CUT!
if you want OC to be “sleepy beach towns” again, then you need to cut the spending and get the 5 families living in a home and paying 1 property tax while not financially contributing to society in any other way, outta here.
They haven’t even begun to cut? Are you crazy? Thousands of teachers laid off? That’s how you deal with a recession is put more people OUT OF WORK?
http://www.pressdemocrat.com/article/20090711/BUSINESS/907111049?Title=Poor-leaving-California-at-higher-rate-than-wealthy
The poor are leaving not the wealthy. You have it ass backwards. Reagan and Wilson RAISED taxes in their recession and California didn’t fall into the ocean. You have bought the lies not me.
Prop. 13 was voted in to stop the state from killing us w/ taxes so the state starting issuing bonds to pay bills, also the state being a major union state all state contracts must be prevailing wage even if it could come in less= added costs piling up year after year. I moved to Ohio from OC because it was so costly to run my business here I am a native of OC and sad to see what has happened, they will tax or fee you to death because they will be in the red again soon, why? they borrowed it from the cities and counties and feds you are sooooo screwed. My permits went from $94. to $278. min. & min. corp. tax is going to triple, car tax just doubled, if you dont get it businesses are going to pass this onto you the consumer, the gov. should get to bare bones period, will it hurt, yes! but the pain will be reduced over time as debt load is reduced just like in business, live with less unfortunately I think its to late for CA…..