December 19, 2007

Ackerman sends list of cuts to Schwarzenegger

Senate Republicans have resurrected their list of budget cuts in response to the state's growing deficit. Among their major targets: education, health and welfare.

Sen. Dick Ackerman, R-Irvine, said he handed the Schwarzenegger administration a list of cuts worth $11 billion before the governor briefed legislative leaders last week. The list is reminiscent of a previous list Senate Republicans produced during last summer's 51-day budget stalemate as conservatives demanded further spending reductions in state government.

Although Ackerman would not release the new proposed cuts, he said most of the suggestions target education, health and welfare since the state is mandated to spend in those areas by various statutes and court orders.

"A lot of money in K-12 is wasted. It gets lost in Sacramento somewhere," Ackerman said Tuesday.

For starters, he suggested suspending Proposition 98 - the constitutional provision that guarantees roughly 40 percent of the General Fund goes to K-14 funding. Such a move could save the state billions by reducing funding to public schools.

The year-to-year growth in Proposition 98 should also be considered, Ackerman said. Currently the 2008-09 budget is projecting a 4.81 percent cost-of-living increase for schools, which translates to an increase cost of $2.7 billion, according to the Legislative Analyst Elizabeth Hill. Ackerman said schools don't need such a big increase.

An additional $400 million in General Fund savings could be found instantly within Proposition 98 if the Legislature takes immediate action to reduce the minimum guarantee, Ackerman said. The suggestion has been previously mentioned by Hill.

On welfare, Republicans have brought back some politically divisive suggestions, including caseload reductions. "The welfare budget has gone up way beyond caseload," Ackerman said.

And when Gov. Arnold Schwarzenegger stood with Assembly Speaker Fabian Núñez on Monday to tout a $14.5 billion health care plan, Republican lawmakers were noticeably absent. "Nobody's real happy about this health care bill," Ackerman said. "We didn't think it was the proper policy or the proper time."

Of course, the senator said "absolutely not" to raising taxes.

Posted by Judy Lin on December 19, 2007 8:45 AM