LA Times: Governor warns of deep fiscal crisis as he unveils California budget plan

[marmar]

Governor warns of deep fiscal crisis as he unveils California budget plan
Schwarzenegger's bid to address a $19.9-billion gap seeks steep cuts in education, healthcare, social services and transit. Republicans applaud the lack of tax cuts; Democrats see a fiscal retread.

By Evan Halper and Shane Goldmacher
January 9, 2010


Reporting from Sacramento - Gov. Arnold Schwarzenegger warned Friday that the state remained deep in fiscal crisis and proposed steep reductions in almost every major government program, but many lawmakers quickly dismissed his ideas as stale and vowed to push for alternatives such as tax hikes.

His proposal, aimed at closing a $19.9-billion gap, and the response to it foreshadow another year of paralysis in Sacramento as the governor and lawmakers struggle with the latest crippling shortfall.

The new budget blueprint -- the governor's last before term limits force him from office -- comes after the state's epic financial problems have already become a target of ridicule around the world. Even after $60 billion in program cuts, tax increases and federal stimulus money over the last year, California's books are so far out of balance that the state is once again in danger of having to issue IOUs.

The governor announced that he would declare a fiscal emergency and immediately call the Legislature into a special session to make budget cuts. His plan includes no new broad-based tax increases. It relies instead on seeking billions of dollars in new federal money and on steep reductions in education, healthcare and social services, as well as cuts in mass transit, state worker pay and environmental programs.

"California is not Washington. We don't have the luxury of printing money or running trillion-dollar deficits," Schwarzenegger said at a news conference Friday morning. "I refuse to raise taxes, because there are so many areas where California can be smarter, more efficient and save precious taxpayer dollars." ...............(more)

The complete piece is at: http://www.latimes.com/news/local/la-me-state-budget9-2010jan09,0,6186917.story

[sharesunited]

1. Republicans applaud the lack of tax hikes I think.

[tabatha]

2. I can't wait until he's gone.

[Mudoria]

4. Why?

He proposes budgets... he doesn' make them. The Democratic legislature does. And they don't seem to be capable of much but adding red ink. You think a Democratic governor is going to wave a magic wand and everything will be great and Cali will be flush in cash? This has been a tsunami building over 30 years and it's finally hit home. Even if California reforms its taxes thing will never be the same as they were.

[tabatha]

6. He should never have cut the auto tax to start with.

He vetoes all the good things the Dems want to do, and 2/3rd majority is required to get anything done.
Thus any budget that is proposed is not a Dem budget.

[Toots]

3. Used to be a saying, "As California goes, so does the nation"

California used to be the leader. The one state that ventured out in front of the rest and was soon followed by all.

[SpiralHawk]

5. Ah, the old saying was "As Maine goes, so goes the nation" I believe

"But, as old sayings go, so go the old sayings"