Schwarzenegger predicts more budget cuts for California

Gov. Arnold Schwarzenegger today predicted a new round of budget cuts, as the state’s finances remain shaky despite large spending reductions made by the governor and lawmakers in July.
 
Schwarzenegger, at a news conference today and at the Fresno Bee’s editorial board Monday, estimated that the current fiscal year’s budget is $5 billion to $7 billion in the red, on top of the $7.4-billion deficit projected by his aides for the fiscal year that begins in July.
 
The governor said he would reveal his specific plans to deal with the problems in January. But he said that, as in the past, no program would be immune to the budget knife. A wide spectrum of programs were cut as state leaders closed a deficit exceeding $20 billion over the summer.

“I think there will be across-the-board cuts again,” Schwarzenegger told reporters today in San Jose, after signing legislation that is part of the water deal he reached last week with lawmakers. “We are not going to go and pick and choose" between programs. "I think that we always have to go and cut across the board."

Schwarzenegger downplayed the impact on state finances from the water deal’s proposed $11-billion bond issue, which will go before voters next year. He said the state would not borrow much of the money for several years, after it has paid down some of its current debt.

The governor said that though there are signs of a recovery in the housing market and strength in the green technology sector, “the economy is not coming back yet the way we want it.”

In a bit of positive news, California Controller John Chiang announced today that tax revenue for October was $285 million above projections, although for the current fiscal year it is still short by $854 million.

--Michael Rothfeld in Sacramento

Comments

[Mr. Cynic]

meaning the rich will stay rich (or get richer) and the poor will DIE....

[Ramon]

All political pundits are Liars. The State needs to cut off welfare, and all non essential services from our tax dollars need to be cut off.

[Linda]

It is a stunning lack of leadership for our elected officials to simply cut "across the board." Some programs are more worthwhile than others, and some should be eliminated altogether. We know they won't do that, though, because a program cut can easily be restored later, but an eliminated program is tough to revivify.

[Marissa]

Ya know, if they would just legalize a certain plant I think alot of revenue would come from it instead of banishing it all together. It's not going away and the "war" on "that drug" will never go away as it has been present for many years anyway.

[Jumpstreet22]

A rise in state taxes for resellers could be raised to 12-15%.Just for a temporary period of time.Say for instance 8-months span..Take a problem
solving attitude step toward the states deficit crisis.Then when all is well,lower the taxation back to its normal standards.
RE:Call this temporary taxation!

[Kenny M]

As I understand it, the original water bill was estimated at 5.6 billion dollars. After the assembly members were through adding their pet projects from Karen Bass down, the bill had reached 11 billion. The interest payments on the bond were estimated to be app $833.00 per taxpayer every year.
Why can't our elected officials take some responsibility and address the core issue of future water needs for Southern California, and address the needs for the farmers in the central valley without all this garbage they've added?
Instead, they "pork" up the bill with totally unrelated projects for their districts!
When they fail to get the bill passed by the voters, they use lame excuses that we need to change the laws so that they can pass it by simple majorities.
Until government grows up and faces reality, the state will never be able to balance the budgets. Until then, the rest is all downhill!

[Ron]

These are individuals who get paid 6 figures and can't come even close to making accurate budget projections and there are people who make minimum wage and come within 100 dollars.

Something seems really odd here?

[LEE]

WHEN IS THE GOVERNOR GOING TO TAKE A CUT IN PAY AND START TAKING REGULAR AIR FLIGHTS INSTEAD OF HIS PERSONAL JET. WHERE DOES IT STOP FOR THE AVERAGE WORKING PERSON?

[lulu]

Maybe he should cut the 200 dollars inmates get when they parole, or stop giving inmates jobs in prison and paying them, they may not get paid alot but every little cut helps. the biggest thing they should stop is the money they take from taxpayers to continue hormone treatments for inmates and the sex change surgery.

[Debbie]

Swartzeneggar doesn't pick and choose unless you sit and smoke cigars with him outside of the captial.

Said he wouldn't pick and choose but cut education but not prisons.

Rapists, murderers, gang bangers have 3 meals a day, clothing, shelter, health care, legal advise, and education all for free... And no budget cut.. But not for the children of California.

[LA Times reader]

Why don't we start with the salaries of the hypocrites in the state Legislature first - http://www.latimes.com/news/local/la-me-state-pay6-2009nov06,0,2559381.story

Gov. Schwarzenegger, I hope that as part of the slashing you're gonna do in the California state budget, that some these 100k+ salaries get slashed also. Maybe we can layoff or "furlough" some of them too - time for EVERYONE to feel the pain of this recession.

[Ron]

More budget cuts = more cuts towards education k-college.
Education is not important in California.

[Fred]

lets cornhole the schools some more!

[Robert NO longer in LA]

But you TWITS keep the same party goons in Office; the Dems have controlled Cal for 50-60 years - KICK THEM out! No the Repubs ARE reprehensible ally curs, but given the REALITY of what the Dems have done, how much worse could it be to get rid of Boxer, and soooo many 30-40 year geriatric millionaire INCUMBENTS????*

[damon]

when are Californians going to get sick of all the fees, surcharges, taxes--we work more for the government than we do for our own families.

The politicians get their money first, I bet none of the politicians are re-budgeting and cutting back just to feed their families--10% increase in withholdings?

Does anyone comprehend that this is government theft--taking without approval? If I go into 7-11 and take milk and tell them Ill pay you next week, I'd go to jail

When will the politicians work for us. When will the beauracracy be forced to run their business the way all other business' do? California as a business should have its CEO's fired. Thats what would happen in the private secotr if a company showed the same faults that government displays

[JSA26]

Thank you Arnold!

Please let our State spend what the get rather than continue to suck more and more out of our pockets.

Our Governor is really doing OK. Any multi-billion dollar company facing a similar lack of income would start with across the board cuts then see if they can move money from low to high priority projects. Keep the budget balanced, then prioritize, PLEASE.

Many of us on a fixed income can't take more tax increases, please don't take more of our money for the bee keeper's (termed out legislator's) commission, or the next SEIU pay raise.

Joe

[Gary]

Governor can't do Jack, except prod and plead. Its the Legislature that passes the spending bills. And the voters keep electing the same hacks election after election. Vote the incumbents out every time, whether they are Democrat, Republicans or other. Do this a few times and they will begin to do right by the people paying the taxes.

[We all budget by priorities, time for government to follow suit]

I agree that programs should never be cut across the border considering that in the last thirty years we have added a plethora of programs (politicians' pet projects). We got along just fine, if not better, before them, and the majority of us have never used, or benefited from any of these pet projects. Our money once was focused on core services. The pet projects should be the first cuts, starting with the latest one, going backwards. We could end up with what we once had, primary focus on the essentials, but, they would be delivered at much higher quality.

Assistance type services could also go back to what they once were, with stricter rules and fewer qualifying applicants. It might mean that the plethora of Social Services families with only one working parent (when the other is capable of working) would find themselves in need of the second parent acquiring work. But, that was the way it used to be, and still is for the many responsible people who do not use Social Services to augment their income, so that one parent can stay home. As my parents used to say "if you have two good arms, and two good legs, you have no excuse not to work."

Focusing on core services and reducing extravagant assistance programs would ensure that those most needy and qualified (elderly, disabled, etc.) would not be unjustly cut, and that our schools would have sufficient funding. It may be unpopular to some. But, it's the fairest and most humane way to make cuts. Getting back to priorities. The resultant downsizing of government would be a huge bonus.

[schlock]

Repeal Prop 13 and get rid of the prop system all together, it doesn't work. Worst case, split north and south California.Its too big, too many conflicting interests etc.

[FedUpWithArnie]

The Governor says cuts are "across the board," but that's completely untrue. Look at the huge cuts to the health and human services sector the past two years. Social services has been growing the slowest of all spending areas - education, higher ed, prisons, resources - over the last 10 years. Then why slash services for abused children? Because foster kids don't vote, that's why.

[ak]

they should've taxed cigarettes and alcohol..deficit would'nt be as bad...

[mr chuck]

THANKS ALOT ARNOLD for cutting ppl on ssi raising taxes food is up yet you continue to cut everything in sight in the state of calif i never voted for you, you need to xae the rich more,give the working poor a chance to live , dont cut warefare off ppl need it to survie theres no jobs ppl losing ther jobs houses cars there live here in calif,its wonder that ppl still lives in this stae you ruined it the day you gotten into office,this state is gonna be a ghost town they way your cutting off everything etc you wants to live in this stae like this?aND you want ppl to come here?n make there movies here they should stay away from calif period! yeah the rich are getting richer the poor are getting poorer n die on the streets of calif you should be impeached now get out of office go back home dont watch his movies boycot all his movies ,,,,!!!!!

[Jage]

America used to be the Land Of The Free. Now it is the Land Of The Free Stuff.
And California is ground zero for those wanting to live off the system.
Time to cut back on supporting those who have never supported themselves.

[RL]

Uh... wait a tick. Are you all serious that you would blame only lawmakers for this gigantic mess? Come on now, let's include voters for doing two things wrong to helping California becoming a steaming pile of you know what. One, we voted for these people to help run the state, we are so stuck with our party loyalty, party values and the such that most times we just have the wrong people in there. Two, California has in its laws the ability through "voter" initiatives for us the voters to make additional rules that restrain our lawmakers from making tough choices. Prop 13 and prop 98 come to mind when i say this. How can you seriously develop a budget designed to cause chaos, heartache, and anything else you can come up with now, so we dont have to worry about it later. And another thing, though some may say cut this, cut that... I say this: We have to give up some luxuries, more and better prisons, schools and parks. Yes we want education to be the best, prisons to be the best, Parks to be the best... But unless we ALL want to pay "more taxes". WE SHOULD CUT EVERYTHING

[Christine Wilton]

Our current economy is a depression, not a recession! More budget cuts will only serve to send more hard working Californians into bankruptcy.

[Mr. State Employee]

I got one thing to say...If I have to show up and work for free any more come January, and people are still getting handouts, and inmates are getting $300 bucks when they get out of prison.... I think its damn well time we just suck it up, and pray that somehow November 2010 comes like.....NOW!!!!

[Old & Evil One]

Instead of continuing to cut programs and services to people paying for them through taxes and hard work, maybe it is time to stop the free programs that are incentives for people to not work. Knock off the increasing incentives for the unemployed and homeless people from out of state to come here along with the undocumented indigents from across all borders. Special classes in elementary school for undocumented kids to learn English is understandable but that cost is taken away from the general fund and the education opportunities of all the other kids too. How many people in the emergency room are employed or legally here? Three prior federal administrations cleared out the indigents when the economy was terrible and it worked. California should get on board with Oklahoma and several other states that have cracked down and lowered their costs by removing the undocumented opportunites which come at the expense of the local tax payers. Sheriff Joe got the right idea in Arizona!

[Kim Righetti]

The governor is an idiot and needs to leave office.