Schwarzenegger to Sign Bills Closing Deficit Next Week

California Governor Arnold Schwarzenegger said he supports the plan the Legislature approved today to erase a $26 billion deficit that pushed the most-populous U.S. state to the brink of insolvency.

The Senate and Assembly passed the package of more than two-dozen bills though a marathon 18-hour session. Schwarzenegger told reporters afterwards that he will sign the budget reduction plan within days after using his line-item veto authority to trim spending and bolster state reserves.

Passage of the plan promised to end a two-month partisan battle over how to eliminate holes that emerged in the $100 billion budget just months after spending cuts and tax increases were enacted in February. Voter refusal in May to authorize borrowing against the state lottery added $5 billion to the gap. Without a balanced budget, California paid bills with IOUs to avoid running out of cash, and the ratings on $72 billion of bonds were cut close to high-yield, high-risk junk status.

“This is not an easy budget but it’s a necessary budget,” Schwarzenegger, a Republican, said. “California has experienced an unprecedented drop in revenue, and we must learn to live within our means.”

The package cuts spending by $15 billion, including $6 billion from schools and community colleges, $3 billion from universities and $1.2 billion from prisons. It also raises $4 billion, in part by accelerating personal and corporate income- tax withholding and increasing the amount withheld by 10 percent.

California State Assembly Aides See Pay Raises

More than 120 Assembly aides were granted salary increases recently despite a rocky state economy and projections of a multibillion-dollar budget shortfall next year.

The pay hikes come at a time when most other state workers are required to take an unpaid furlough each month to save money.

The raises also could affect balloting next month, when voters will decide the fate a measure to extend new tax increases in return for a limit on future state spending.

“They’re claiming that we are facing financial Armageddon at the same time they’re handing out pay increases,” said Jon Coupal, president of the Howard Jarvis Association, which is helping to rally opposition to the controversial Proposition 1A.

“How could they be so stupid? Did they think we wouldn’t notice? … I think it will absolutely hurt them at the polls.”

Assembly Speaker Karen Bass said her legislative house has reduced its personnel and streamlined operations, thus allowing it to reduce spending while offering pay increases to some deserving aides who haven’t received them in years.

“Should I have held the raises until after the election?” Bass said. “To tell you the truth, I was trying to properly manage the institution. I wasn’t making decisions based on politics.

SOURCE

Schwarzenegger Seeks to Cut Education

California schools could eliminate a week of instruction and increase class sizes next year under Gov. Arnold Schwarzenegger’s new plan for solving the state’s budget crisis.

Vowing to give schools maximum flexibility to cut costs, the proposal unveiled Wednesday also would allow districts to eliminate one of two science courses required for high school graduation.

Schwarzenegger’s plan would provide no teacher salary increases, eliminate a program providing subsidies to overhaul low-performing schools, and suspend participation in a program encouraging teachers to obtain national certification.

“It’s got a lot of ugliness to it and something for everyone to hate,” said Kevin Gordon, a veteran education lobbyist who said he sympathizes with Schwarzenegger’s plight.

… Continue Reading

If The California Budget Is So Bad, Then Why Pass It???

Apparently I am a simpleton. I look at all of the reports and news stories indicating that the state budget has more holes than swiss cheese. So my question, why pass it?

I’m sure that balancing a $145 billion budget is no easy task. However, isn’t is just mathematics 101? You do not allow your expenses to exceed your income. Bottom line, stop being fiscally irresponsible!

Governor Schwarzenegger will sign this budget early next week.

Schwarzenegger demanded that the state solve its structural budget problems for good this summer, in Arnold-speak repeating he no longer wanted to “kick that can down the alley.”

The governor and legislative leaders called for reforms to prevent future deadlocks. But they have significantly different views about the kind of reform needed.

If the Governator isn’t happy with the budget, then why should we be?

“I don’t see that much of a signing ceremony, because there’s nothing to really celebrate that much,” Schwarzenegger said at an afternoon news conference

Republicans are balking at this budget as well…

“There certainly have been get-out-of-town budgets before, but I have never seen a budget as awful as this one,” said Republican adviser Steve Merksamer, former chief of staff to Gov. George Deukmeijian. “Legislators are here to make tough decisions, provide leadership, and one of the reasons why their ratings are so low is because they play these kinds of games.”

So just how bad is this budget you ask? Wanna get a copy and see for yourself? Well I do and I am !

Get your copy here.

Schwarzenegger to Veto Budget

Gov. Arnold Schwarzenegger announced today that he would veto the budget lawmakers approved hours earlier as it does not include long-term spending changes he is requiring.

Calling the budget proposal passed by lawmakers “irresponsible,” Gov. Schwarzenegger Tuesday announced plans to veto the spending plan as soon as it reaches his desk.

“Enough is enough,” Schwarzenegger told reporters at a State Capitol news conference.

“People aren’t getting paid, hospitals are in danger of closing, but I will not sign a get out of town budget…that punishes taxpayers,” Schwarzenegger said.

If lawmakers vote to override the veto, Schwarzenegger said, he will veto “hundreds” of bills awaiting action on his desk.

A marathon session of the Legislature ended at 2:30 a.m. Tuesday with the proposed compromise receiving the necessary two-thirds majority to pass the Assembly, 61-1, and the Senate, 28-12.

But lawmakers rejected one of Schwarzenegger’s demands, which would have placed tighter limits on when and how much money could be transferred from the state’s rainy-day fund.

It would take two-thirds of the Legislature to override the veto, and veto overrides are rare in California. The last time it was even attempted, according to the Speaker’s office, was in 2003, and it failed.

Legislative leaders of both parties said they were prepared to override Schwarzenegger this time. They scheduled a Thursday session to do so, assuming the governor vetoes the bill Wednesday.

“It is a mistake and I will vote to override the Governor’s veto, as should every other legislator who approved this budget, said Senate Republican Leader Dave Cogdill, R-Modesto. “This Governor has failed to do the hard work of proposing real structural reforms to keep spending under control.”

SacBee.com

He also reiterated a threat he made during the impasse to veto any bills sent to him until a budget deal had been struck. If lawmakers override his budget veto, he said he will take a hard line on their legislation, potentially wiping away a year’s worth of work. “Hundreds of bills will be vetoed,” the governor said.

Let’s see if his bark is worse than his bite…