Drastic changes will be taking place in California as the state tries to bridge a $24.3 billion budget deficit. Governor Arnold Schwarzenegger addressed a joint session of the legislature on June 2 regarding the state budget and numerous proposed spending cuts.
Among the proposals are the closing of 220 of California’s 279 state parks (80 percent), the elimination of welfare benefit for 5,000 recipients, and layoffs of 5,000 state workers. Schwarzenegger is also proposing to sell numerous state properties.
Last week, Controller John Chiang wrote a letter telling legislative leaders that the state would run out of money to cover its costs by July 29. According to Schwarzenegger, he also said there are 14 days to act before the state risks running out of cash.
Schwarzenegger said it clearly, “California’s day of reckoning is here.”
“If we don’t act, the state will simply run out of money and go insolvent. You see, we are not Washington. We cannot print our own money, we cannot run trillion dollar deficits and we can only spend the money that we have. That is the harsh but simple reality,” he said.
California has been among the hardest hit by the global financial crisis. The state saw a 27 percent drop in its revenues since last year, and just three months ago in its February budget, other measures were taken to solve $36 billion of a $42 billion deficit.
According to Schwarzenegger, he has “proposed drastic changes in our May [budget] Revision.”
The new fiscal year begins July 1. Schwarzenegger has already begun to make cuts that do not need voter approval, including reduced state payroll.
“People come up to me all the time, pleading, ‘Governor, please don’t cut my program.’ They tell me about how those cuts affect them and their loved ones. I see the pain in their eyes and I hear the fear in their voices and I hear the demonstrations outside of our Capitol. It’s an awful feeling but we have no choice,” Schwarzenegger said.
“Our wallet is empty, our bank is closed and our credit is dried up,” he said.
San Diego Mayor Jerry Sanders called it the “anti-stimulus package.”
On May 28, more than 100 elected officials from cities around California stood to challenge some of the proposals. Sanders said that he and other mayors across California will “explore every possible option” to prevent some of the proposals that would take money from taxpayers.
“So far, we’ve balanced our budget without making cuts to public safety,” said Sanders in a press release. “But with the state threatening to essentially wipe out the enormous savings from our hard-won labor concessions, we cannot continue to promise we’ll hold funding steady in any department—including police and fire.”
Sanders traveled to Sacramento on May 26 to speak with the governor and legislative leaders. He said that he will go back to “continue this fight,” and he encouraged San Diegans to take their own lead to call their legislators “and tell them it’s time they make tough choices—not take the easy out by stealing from those of us who already have it,” he said.
Among the proposals are the closing of 220 of California’s 279 state parks (80 percent), the elimination of welfare benefit for 5,000 recipients, and layoffs of 5,000 state workers. Schwarzenegger is also proposing to sell numerous state properties.
Last week, Controller John Chiang wrote a letter telling legislative leaders that the state would run out of money to cover its costs by July 29. According to Schwarzenegger, he also said there are 14 days to act before the state risks running out of cash.
Schwarzenegger said it clearly, “California’s day of reckoning is here.”
“If we don’t act, the state will simply run out of money and go insolvent. You see, we are not Washington. We cannot print our own money, we cannot run trillion dollar deficits and we can only spend the money that we have. That is the harsh but simple reality,” he said.
California has been among the hardest hit by the global financial crisis. The state saw a 27 percent drop in its revenues since last year, and just three months ago in its February budget, other measures were taken to solve $36 billion of a $42 billion deficit.
According to Schwarzenegger, he has “proposed drastic changes in our May [budget] Revision.”
The new fiscal year begins July 1. Schwarzenegger has already begun to make cuts that do not need voter approval, including reduced state payroll.
“People come up to me all the time, pleading, ‘Governor, please don’t cut my program.’ They tell me about how those cuts affect them and their loved ones. I see the pain in their eyes and I hear the fear in their voices and I hear the demonstrations outside of our Capitol. It’s an awful feeling but we have no choice,” Schwarzenegger said.
“Our wallet is empty, our bank is closed and our credit is dried up,” he said.
The ‘Anti-Stimulus Package’
The proposed cuts have not gone over well with Californians and state and local legislators. Some heavy throwback has been felt over proposals that would take billions from local taxpayers in cities that are already struggling with their own deficits.San Diego Mayor Jerry Sanders called it the “anti-stimulus package.”
On May 28, more than 100 elected officials from cities around California stood to challenge some of the proposals. Sanders said that he and other mayors across California will “explore every possible option” to prevent some of the proposals that would take money from taxpayers.
“So far, we’ve balanced our budget without making cuts to public safety,” said Sanders in a press release. “But with the state threatening to essentially wipe out the enormous savings from our hard-won labor concessions, we cannot continue to promise we’ll hold funding steady in any department—including police and fire.”
Sanders traveled to Sacramento on May 26 to speak with the governor and legislative leaders. He said that he will go back to “continue this fight,” and he encouraged San Diegans to take their own lead to call their legislators “and tell them it’s time they make tough choices—not take the easy out by stealing from those of us who already have it,” he said.
