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Dialysis Discussion => Dialysis: News Articles => Topic started by: okarol on May 26, 2009, 05:09:39 PM

Title: Guv Offers New Cuts, More To Come
Post by: okarol on May 26, 2009, 05:09:39 PM
May 26, 2009
Guv Offers New Cuts, More To Come
 
Governor Schwarzenegger proposed a new list of deep reductions in state spending today, including more prisoners to be released early, a scrapping of a stalled state worker labor agreement, and new cuts in medical care for the poor.

And that won't be all; aides to the governor say he'll propose an additional $3 billion in spending reductions later this week.


The $5.6 billion in spending cancellations over the next 13 months are going to raise an awful lot of eyebrows. For state workers, the governor is effectively walking away from a new contract that his staff negotiated earlier this spring, thus saving the state $210 million over the next 15 months. That contract has never been approved by the Legislature; the scrapping of the deal would keep those state employees represented by SEIU Local 1000 at a two-day-a-month furlough.

The governor is also proposing to allow nonviolent, non-serious, non-sex offender inmates out of prison a year early, saving $120.5 million.

And he's suggesting multiple cuts in the Medi-Cal program... about $284 million that include services like dialysis treatment, and much of which would require a waiver of federal stimulus law to prevent California from losing big stimulus bucks.

Some of today's proposed cuts -- like shutting down the welfare-to-work program CalWORKS and the Healthy Families Program... as well as all general fund dollars for state parks, college student loans, and more -- were first revealed last week. And there are many, many more that you can read for yourself.( http://www.dof.ca.gov/budget/historical/2009-10/may_revision/documents/2009-10_May_Revision_Updates.pdf )

They will be joined, we're told, by an additional $3 billion in spending reductions to be proposed later this week, the amount being the additional red ink that the Legislative Analyst's Office believes that could arise by the summer of 2010.

Today's proposed cuts sparked some emotional comments from the chair of the Legislature's joint budget committee, Assemblymember Noreen Evans (D-Santa Rosa). "The governor has made it very clear," Evans said at today's conference committee hearing. "He'd rather throw women and children out of the lifeboat before he raises taxes."

All that being said, the most perplexing part of today's dump of budget documents was the actual numbers. And a word of caution, some of the below may change... as I've been seeking some clarity on the original documents.

For starters, the Schwarzenegger administration is now calling the state's budget gap a $24.3 billion problem between now and June 30, 2010. That's basically their $21.3 billion gap of last week, grafted on to the new LAO projections.

But that also assumes a $2 billion reserve fund; therefore, the actual deficit projection would appear to be $22.3 billion (note: if accurate, we will only use that number -- not the guv's larger number -- in future blog postings on the deficit).

It appears that the governor is calling for about $21 billion in solutions to be made in the budget year that begins on July 1, which if enacted would actually leaving the state with a $3.2 billion surplus as of June 30, 2010.

Some context: remember that the February budget deal made $19 billion in cuts and tax increases in the 2009-10 fiscal year... the same fiscal year from which Schwarzenegger is now hoping to squeeze another $21 billion.

The governor's budget team also released some early projections for the budget year that begins next July (2010-2011 fiscal year). There, they project -- without action -- a $17.2 billion gap.

That would bring the total deficit between now and June 30, 2011 to $41.7 billion.

http://blogs.kqed.org/capitalnotes/2009/05/26/guv-offers-new-cuts-more-to-come/
Title: Re: Guv Offers New Cuts, More To Come
Post by: kitkatz on May 26, 2009, 06:45:57 PM
California is going to hell in a handbasket with the budget.
Title: Re: Guv Offers New Cuts, More To Come
Post by: Jean on May 26, 2009, 10:59:05 PM
Funny I liked him in the Conan series. As the guvernator, I am not so happy about him. Yes, California is going to hell in a handbasket.
Title: Re: Guv Offers New Cuts, More To Come
Post by: Rerun on May 27, 2009, 05:19:21 AM
All the illegals have dragged it down.  It just has tuned into a little Mexico.  That is not a racist comment either.  Ask any of the legal Mexicans there and they will say the same thing.

How may illegals are on dialysis in CA and get transplants?  Who pays??
Title: Re: Guv Offers New Cuts, More To Come
Post by: paul.karen on May 27, 2009, 10:16:05 AM
i dont see the big deal here.
Our collective tax dollars will bail California out of its self made debt.

Then they can run it up again.

Government is FAR to big all over.  The people believe it or not didnt create any of the messes we the US people are now paying for.  We the people get our paychecks give almost half of what we make to local state and federal movements and make due with what we have left.  We balance our budgets and buy within our means.

Sadly the politicians on all sides spend spend spend and then raise our taxs all the while listening to there special interest groups who tell them what is best for them.  Not what is best for us the people who in reality or the politicians bosses.

The bad news taxs will be going up across the board.
The good news.  Obama has a plan to fix everything.
Title: Re: Guv Offers New Cuts, More To Come
Post by: Jean on May 28, 2009, 12:00:41 AM
Oh, I am so relieved we have Obama as our president. He has the answers for everything.
Title: Re: Guv Offers New Cuts, More To Come
Post by: Joe Paul on May 28, 2009, 12:30:50 AM
I say have the Politicians take a pay cut, they take away from everyone but themselves.