Governor proposes budget cuts without tax hikes
Gov. Anrold Schwarzeneggar says he plans to reduce California's deficit while expanding healthcare benefits to uninsured residents
Aaron Berry
Issue date: 1/15/08 Section: News
SACREMENTO - Amid blustery winds and intermittent rain showers, Gov. Arnold Schwarzenegger promised to reduce California's $14 billion deficit through across-the-board cuts in state programs, without raising taxes, in his Jan. 8 State of the State Address in the California State Assembly Chamber.
Many reporters exchanged updates on the New Hampshire Primary election before the address began, where polling stations were filled with record-high voter turnouts. Issues for young voters such as sustainability and the war in Iraq, however, were not emphasized in Schwarzenegger's address.
It was all about fiscal responsibility instead.
"For several years, we took actions that balanced the budget as long as the economy was booming," Schwarzenegger said. "For several years, we kept the budget wolf from the door. But the wolf is back."
Schwarzenegger said he will propose a constitutional amendment to limit state spending and promote public and private sector partnerships. In his state budget, released Jan. 10, Schwarzenegger cut about 10 percent from nearly all government services, including $4.5 billion from public schools over the next 2 ½ years.
In his address, Schwarzenegger also promised to expand health care coverage to many of the state's uninsured residents and expand veteran benefits.
"Now I understand the concern that we have a deficit, and that our plan is too daring, too bold, too expensive. But sometimes you have to be daring because the need is so great," he said.
Democrats disagreed with Schwarzenegger's approach as they expressed concern over potential budget cuts to education and care for children and the elderly. They also called for a tax increase.
Senate President pro Tem Don Perata (D-East Bay) called Schwarzenegger's address an unrealistic plan of retrenchment and retreat.
"Only a moron would continue the way we have been going," Perata said. "We were sold tonight on excellence in mediocrity."
Republicans applauded the governor's refusal to increase taxes.
Assembly Minority Leader Michael Villines (R-Clovis) said raising taxes are not the answer to California's problems.
"We have to live within our means … managing funds without peaks and valleys," he said.
In his 2007 State of the State Address, Schwarzenegger promised to reach across the aisle as part of his initiative to achieve post-partisanship.
"New suit, not much else," said Carole Migden (D-San Francisco). "I'm not forecasting dire times, but there is a gap between what is said and done here."
Assembly Speaker Fabian Núñez (D-Los Angeles) called for a more creative plan to balance the budget. "This strategy of 'borrow and cut' is not working," he said.
Many reporters exchanged updates on the New Hampshire Primary election before the address began, where polling stations were filled with record-high voter turnouts. Issues for young voters such as sustainability and the war in Iraq, however, were not emphasized in Schwarzenegger's address.
It was all about fiscal responsibility instead.
"For several years, we took actions that balanced the budget as long as the economy was booming," Schwarzenegger said. "For several years, we kept the budget wolf from the door. But the wolf is back."
Schwarzenegger said he will propose a constitutional amendment to limit state spending and promote public and private sector partnerships. In his state budget, released Jan. 10, Schwarzenegger cut about 10 percent from nearly all government services, including $4.5 billion from public schools over the next 2 ½ years.
In his address, Schwarzenegger also promised to expand health care coverage to many of the state's uninsured residents and expand veteran benefits.
"Now I understand the concern that we have a deficit, and that our plan is too daring, too bold, too expensive. But sometimes you have to be daring because the need is so great," he said.
Democrats disagreed with Schwarzenegger's approach as they expressed concern over potential budget cuts to education and care for children and the elderly. They also called for a tax increase.
Senate President pro Tem Don Perata (D-East Bay) called Schwarzenegger's address an unrealistic plan of retrenchment and retreat.
"Only a moron would continue the way we have been going," Perata said. "We were sold tonight on excellence in mediocrity."
Republicans applauded the governor's refusal to increase taxes.
Assembly Minority Leader Michael Villines (R-Clovis) said raising taxes are not the answer to California's problems.
"We have to live within our means … managing funds without peaks and valleys," he said.
In his 2007 State of the State Address, Schwarzenegger promised to reach across the aisle as part of his initiative to achieve post-partisanship.
"New suit, not much else," said Carole Migden (D-San Francisco). "I'm not forecasting dire times, but there is a gap between what is said and done here."
Assembly Speaker Fabian Núñez (D-Los Angeles) called for a more creative plan to balance the budget. "This strategy of 'borrow and cut' is not working," he said.
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ONTIME
posted 1/15/08 @ 9:42 AM PST
Maybe this state called Kaaaleeeephornya has bottomed out and if so then we can finally start to rebuild a state whose desireability was once enhanced by so many pluses, a balanced carefully managed government, legislatures who had some sembalance of integrity and a real belief in law and order. (Continued…)
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