Governor Schwarzenegger to seek federal help for California budget

Posted by Kendall Harmon

Facing a budget deficit of more than $20 billion, Gov. Arnold Schwarzenegger is expected to call for deep reductions in already suffering local mass transit programs, renew his push to expand oil drilling off the Santa Barbara coast and appeal to Washington for billions of dollars in federal help, according to state officials and lobbyists familiar with the plan.

If Washington does not provide roughly $8 billion in new aid for the state, the governor threatens to severely cut back -- if not eliminate -- CalWORKS, the state's main welfare program; the In-Home Health Care Services program for the disabled and elderly poor, and two tax breaks for large corporations recently approved by the Legislature, the officials said.

Schwarzenegger also will propose extending a cut in the state payroll that is scheduled to expire this summer. That cut has translated into 200,000 state workers being furloughed three days a month, the equivalent of a 14% pay cut. Lawmakers would have the option of extending the furloughs, imposing layoffs or some combination of the two.

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Filed under: * Economics, Politics • Economy • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • State Government

8 Comments
Posted December 23, 2009 at 6:04 am [Printer Friendly] [Print w/ comments]



1. Br. Michael wrote:

At a minimum, the time has come for a constitutional amendment prohibiting the federal government from imposing unfunded mandates on the States.  The federal government should have no power to do indirectly what it cannot do directly.

December 23, 11:01 am | [comment link]
2. Branford wrote:

I agree, Br. Michael, but the time has also come for the California assembly to act like adults and cut their budget - not tax us more.

December 23, 11:27 am | [comment link]
3. Brian of Maryland wrote:

And the time has come for the California assembly to act like adults and start questioning why so many businesses have fled to other states.

December 23, 12:02 pm | [comment link]
4. Branford wrote:

And people, Brian of Maryland - we will be leaving this summer.

December 23, 12:35 pm | [comment link]
5. Jim the Puritan wrote:

We’re considering moving from our state to California because things are worse in our state.  Lower salaries, higher costs and taxes.  Almost impossible to survive.  Despite all its problems, California still pays more and costs less than where we are.

Of course, if we had any brains we’d move to Texas, but California is the only State where we have any family connections besides our home state.  And our kids are moving there as well.

Pray for us.

December 23, 1:41 pm | [comment link]
6. Brian of Maryland wrote:

Branford,

We moved from the Bay Area seven years ago. I’m a native, loved the geography, but hated Bay Area politics, rolling black-outs at dinner time, taxes, and high cost of living.  Maryland isn’t much cheaper, but it’s slightly less bankrupt than CA.  Welcome to blue states and their huge deficits.  I think I see a federal pattern too.

December 23, 2:08 pm | [comment link]
7. Alta Californian wrote:

Just as I predicted.  When Kendall put up this post about South Carolina’s budget crisis, there was not a single comment but mine.  But when it’s California, well, bring on the snark.

Dibs on Branford’s parking space!

December 23, 7:20 pm | [comment link]
8. Branford wrote:

We’re originally from the east coast, but have been in California 16 years. Beautiful state (outside of LA) and very nice people, but impossible to retire here - one of the highest state income taxes, highest fuel taxes, highest sales taxes, etc. We will be moving South, back closer to family (only one state away) and to a lower taxing state.

December 23, 9:39 pm | [comment link]
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