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Governor's budget needs more revenue, analyst says

By Judy Lin - jlin@sacbee.com

Last Updated 1:12 pm PST Monday, January 14, 2008

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In trying to cut his way out of fiscal distress, Gov. Arnold Schwarzenegger's proposed budget fails to prioritize which programs are most critical for California's future, according to an analysis of his spending plan released Monday.

In her report on the governor's proposed spending plan, Legislative Analyst Elizabeth Hill said the administration's across-the-board reductions would leave programs "operating in a less than optimal manner and provide lower quality services to the public."

Hill encouraged the Legislature to identify more revenues, whether it's eliminating tax credits or adding fees.

Schwarzenegger's proposed budget reforms would seriously dilute the Legislature's appropriation authority, according to the nonpartisan fiscal analyst. In releasing his much-anticipated budget last week, the governor resurrected a plan to create a rainy-day fund during good years and impose automatic spending cuts during bad years.

He also declared a fiscal emergency that sets a 45-day deadline to impose immediate cuts.

As the clock began ticking in the Capitol for the Legislature to tackle the fiscal emergency, the governor spent Monday in the Central Valley promoting his plan.

In discussing the state's projected $14.5 billion deficit with Tulare County officials, Schwarzenegger offered to provide "wienerschnitzel and schnapps" to help the Legislature get work done.


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