Schwarzenegger talks budget cuts in L.A.

Appearing at a West L.A. Shell hydrogen station today to highlight advances in fuel-cell technology, Gov. Arnold Schwarzenegger defended his proposed $5 billion in budget cuts.

“There is, basically, when it comes to revenues, a free fall right now. We don’t know where this is going to stop,” he said. “Even while we are going to negotiate the budget in June, we don’t know if that doesn’t create during that time another $3-billion deficit.

"So, for me, to at this point to be optimistic and say maybe we don’t have to make certain cuts, would be foolish. … Right now is a very difficult time, and we see that the revenues are going down and down and down. We don’t know where this thing is going to stop.”

He said "the people have spoken now" when it comes to taxes.

"They don’t want to raise taxes. That’s why they voted no on the initiative. So we are jammed into a corner and we have to now act fiscally responsible.

“Do I like it?" he continued. "It hurts me. … It is painful to know that the kinds of programs that you cut are absolutely essential to people. But when you don’t have the money, you can’t promise something to people, something you cannot afford. … Doing gimmicks, doing borrowing, all of those things are out of the question. The people made it very clear. So we have to live within our means.”

He said the budget negotiations would be challenging.

“But I think it can be done. I talk to those legislative leaders every day and I see a positive response. Everyone recognizes what the challenges are.”

He urged state lawmakers not to just take care of the budget this year and the coming year, but to think further into the future.

“It doesn’t make any sense to solve our budget problem today and knowingly have $20 billion of budget deficit again two years from now. So we've got to really get in there now and try to live within our means … and not always live in a fantasy.”

--Alexandra Zavis

Comments

[Shay]

I didn't vote no because I didn't want taxes. I understand that taxes are necessary. I voted No because I'm tired of doing the legislators' jobs. They need to get off their butts and stop all the infighting. Then they need to get down to business and compromise. Some cuts. Some taxes. Balanced budget. We all have to balance our own checkbooks by making some sacrifices and paying for others. Why can't they?

[buz]

Maybe Arnie can beg the Chinese to buy some California Bonds. Then we can blow the borrowed money on feel good programs and continue to live in liberal fantasy land.

[Bob Johnson]

All cuts. No taxes. Get a grip.

[MWJ]

While I'm sure he will quicky forget, it is nice to see that at least for a day the Governor got the message. NO MORE TAXES.

[myfailsafe]

Cut everything to the bone! State, city, and county employees cannot count on raising taxes every time they try to preserve pay and benefits. We cannot tax our way from this mess. Union contracts that were agreed upon when the state was flush with bubble money must now be re-done. Simple as that!!!!

[Right To Work State]

We are now reaping the "fruits" (no this doesn't realte to prop 8 lol)
of many years of public employees unions driving the tax & spending policies of a spineless Assembly & Senate. Why not install the head of the SEIU or Cal Nurses Assoc etc...as our next governor. Government in this state has only served those who depend on it for either services and/or employment. The few of us who support this state in a significant way continue to get the shaft. Business should and will continue to exit to more friendly locales. As for residents, they can opt for places such as Florida where there is no income tax.

[Da Maverick]

With the exception of "Shay" the rest of you are living in an absolute dystopic fantasy that you all sadistically want to be more and more cruel and vicious. You think CA is over burdened with too many State workers? Not so, we actually rank at the bottom nationally of state workers per capita. Should public employees contract be re-negotiated? Well duh! But should we fire the whole lot of them? Just remember, just because you fire govt. employees doesn't mean you won't still have a legal requirement to renew your licenses, pay your VLF's, etc. Should you need the help of an actual person at a DMV office, may God be with you.

Voters turned down the budget because they want Sacramento to do their jobs, make the tough choices even if it upsets their biggest campaign contributors. Voters WANT these programs around, it's what makes CA the Golden State. But if you all want to turn this state into Florida or Nevada, go right ahead and watch Google, Yahoo!, and just about every Ph.D from UCLA, UCB, and UCSD leave.

[ChargerFan]

Perhaps our "special" legislators will realize one day that taxes are at the tipping point. In other words, raising taxes at the level they are at in this state, rich or poor, has a detrimental effect on the economy. They need to read up on the the Laffer Curve and slash taxes drastically to encourage productivity and investment.

[max]

A great place for the California to start saving some money is by eliminating the talking head moron we have as governor. We would be in a better place had the cyborg triumphed in his pathetic Terminator movies.

[Jose]

So let me get this straight, the problem with California's budget is due to teachers, cops, firemen and nurses? Hmmm.. I always thought the problem were the millions of welfare recipients and illegal immigrants that clog up the emergency rooms, courts, welfare system, social services systems, jails, etc. We have entire cities with populations that don't work, won't work, and never have worked, yet it's the state workers that are causing this problem. Go figure. Maybe as a state worker I'll just quit my job and be one of the good guys.. by going on welfare.

[Louweegie272]

Everyone is hurting financially. These are awful times, our Government needs to figure out how to live within it's means, hopefully now they will.

[Hosetlh]

Hit the employee unions HARD. Pensions, bonuses and pay need to be reduced to private sector levals.

[US Citizen]

Hey Arnie............how about all the illegals in this state? Statistics are showing an 11 to 13 BILLION deficient, going to these border jumpers alone. Enforce e verify and make them leave. You'll have lots of money left over, water and electricity wont be in short supply, school classes will be smaller and hospitals can be in the black. How about getting a clue over this!!!

[laura]

you can be sure that the media is full of cuts that people don't want. Some news group should really see where the fat is in the budget and make everyone aware where the true cuts should take place, do not fall for it

[michael]

Repeal Prop 13.

Eliminate Super majority requirements in the legislature.

Problem solved.

California doesn't have this problem because of illegal immigrants, or welfare or unions. It has this because it is the only state that creates the absurd situation of allowing a minority of voters to derail the entire budget process.

[way]

California has very low property taxes compared to many state. Look at California's assets their trillionairs. It cost money too provide the services Californian want in their state.
One problem they don't want to pay for it.
You refused a hundred plus or minus dollar licence fee. Elected Arnold over it and cost the state billions of dollars in interest and help lead to our present situation.
Billions go into IRAs and 401 every mouth in California. Many Californians have the money.

[ChargerFan]

What are you smoking? Calif has "low" property taxes? Are you kidding me? We have property taxes, gas taxes, sales taxes, Excise taxes, license fees, park entry fees, utility taxes, etc.....
The state has far too many workers in the public sector. We need to trim down government in this state because I for one, am sick and tired of paying for what I receive in return. I would rather have fewere services and more of my hard earned cash.