May 14, 2008

Reactions to the May budget

Here's a compilation of reactions to Gov. Arnold Schwarzenegger's May budget proposal (Read about the proposal here.):

Legislative leadership

Senate President pro Tem Don Perata, D-Oakland:
“This is a budget beneath a governor of this great state. It’s telling our citizens: This is it. Our best years are behind us.”

“Under this plan, schools will lay off teachers and increase class sizes, and we will abandon children and the elderly. It’s shameful.”

Assembly Speaker Karen Bass, D-Los Angeles:
“There are cuts in this budget proposal that unfairly hurt struggling California families and solutions that may be no more than risky schemes."

“I am happy to hear that the Governor realizes we need to bring in more revenue, that the budget deficit cannot be solved through cuts alone. I do applaud the Governor for embracing the proposal for a tax commission that will study ways to bring our state’s revenue collection into the 21st century. I look forward to working with him. This current budget does not address long-term solutions and I think it’s important to do that.”

“It is important to look at the [securitization of the] lottery, but I do have tremendous concerns that it is a risky proposition to say that is the sole way we will look for new revenue.”

“Public transportation is up in many cities, including my own …and it is up precisely because of the price of gas. If people are feeling the pinch there, then we cut back on public transportation it seems like a double hit.”

Senate Republican leader Dave Cogdill:
“I’m pleased that the Governor’s May budget revision prioritizes state spending and has moved away from across the board cuts. Despite a slowing economy, our state’s revenues are holding steady which shows we still need to address the spending addiction in Sacramento. Budget reform will ensure the state spends no more than it takes in.

“Tax increases – or the threat thereof – are not the answer. While we support looking at ways to make the lottery more profitable to taxpayers we have concerns about linking those reforms to a tax hike.

“We are very supportive of the Governor’s decision to back off of his early release for criminals proposal but we are still concerned about summary parole, which is a threat to public safety.

“I support the Governor’s decision to keep state parks open. Not only do our parks contribute to our state’s beauty, they also draw tourism which is a large component of our economy.

“This document provides a framework for the legislative leadership to begin talks in earnest about how to give Californians the on-time, responsible budget that they deserve.”

Assembly Republican leader Mike Villines, R-Clovis
“I applaud the Governor for fully funding education at the minimum guarantee. I am also pleased that the May Revise includes some positive improvements over the January budget proposal, including eliminating a previous early release plan, keeping our state parks open and reducing spending in one of the fastest growing areas of government.

“The May Revise also presents some significant concerns for Republicans. With families struggling to pay high prices for gasoline and groceries while home values are falling, the last thing we ought to be doing is raising taxes. The time for borrowing and questionable budget schemes is long behind us.

“Let me be clear – Assembly Republicans will not support tax increases, period. Raising taxes will only lead to more jobs lost, which will hinder our economic growth and hurt families. Assembly Republicans are ready to sit down today with the Governor and Democrats to take immediate action to balance the budget and help California live within its means.”

Assemblyman John Laird, D-Santa Cruz, chair of the Assembly Budget Committee:
"The governor’s May Revise proposals are not the right answer for California and are not a real fix. They’re bad for our economy, lay off teachers and are based on risky assumptions.

“With his revised budget, the governor has proposed setting up a third budget reserve and he’s calling it ‘reform’. But it’s no substitute for hard decisions. While I salute him for proposing $7 billion more on the revenue side of the budget, his budget still leaves in place a $4 billion cut to schools, which is a the heart of what’s wrong with his budget: kids. The governor’s budget targets kids at school, and then again at home in the form of his very deep cuts to health and human services.

And at a time of increased transit ridership, the governor proposes to pull nearly all transit funding out the budget. He also proposes to take the annual federal increase in social security payments and divert the money away from seniors and into the state budget for other purposes.

Along with my colleagues in the legislature, I’m ready to get to work in the spirit of reality to move toward a real fix to California’s budget crisis.”

Assemblyman Roger Niello, R-Fair Oaks, the vice-chair of the Assembly Budget Committee:
“Republicans are encouraged to see the Governor follow our lead by fully funding education and reducing spending in one of the fastest growing areas of government. We are also pleased that the May Revise does not include a previous proposal to release 22,000 inmates into our communities before they have served their time.

“There are many aspects of this proposal that leave us concerned, however. Now is not the time for more borrowing, a complicated scheme to sell the state lottery or a dangerous summary parole proposal. As gas prices and grocery prices go up and home values go down, it is also not the time to raise taxes on hardworking families.

“The deficit has grown significantly in recent months, and it’s time for lawmakers and the Governor to once and for all address the root of our budget problems – years of overspending. We must also end the budget madness by addressing the structural deficit and reforming the system to prevent us from spending more than we bring in. The time for action is now, and Assembly Republicans stand ready to get down to work immediately to make the hard choices to balance the budget without tax increases and get California back on track.”

Sen. Bob Dutton, R-Rancho Cucamonga, vice-chair of the Senate Budget Committee:
“While I believe the May Revision gives us a good starting point in our negotiations, I feel the governor’s proposal doesn’t do nearly enough to change the way we do business in California. I’m deeply concerned that this budget doesn’t put the measures in place that will help grow the economy and generate additional tax revenues through job creation.”

Senate Republicans:

Sen. Sam Aanestad, R-Grass Valley:
“My belief is we need to cut spending to balance this budget, and I’m hopeful the Governor will listen to the concerns of Senate Republicans. New taxes are not the answer to our current budget deficit. We have a spending problem and we need to cut spending.”

Sen. Jeff Denham, R-Merced:
“I don’t believe the choice is simply between more borrowing or raising taxes. Why should taxpayers have to be on the hook even more because state leaders couldn’t stop their ‘crazy deficit spending?’ For six years, I have been fighting in Sacramento to reduce government waste. As we face yet another budget deficit, the State must analyze its assets, as any business would do during tough times. We must rid the state of unused or underutilized state properties through fair market sales. These sales would help the State pay off deficit recovery bonds, and bring down California’s debt ratio. I do appreciate that the Governor abandoned his idea of releasing 22,000 convicts onto our streets - that would have created a public safety and budgeting nightmare."

Sen. Tom Harman, R-Huntington Beach:
“California’s budget crisis is the product of fluctuating tax revenues and steadily increasing state spending. While the Governor’s proposal for a Revenue Stabilization Fund will address the first problem, if the state continues to increase spending as it has over the past couple of years, even the rainy day fund will run dry. What we need in Sacramento is to control our spending.”

Sen. Bob Margett, R-Glendora:“The Governor’s May Revision shows the acuteness of California’s financial situation. I am glad to see the Governor has met the Prop 98 minimum, backed away from releasing felons early, and kept our state parks open. However, the proposal is full of gimmicks and relies too heavily on credit card spending, including the modernization of the California Lottery.”

Sen. George Runner, R-Antelope Valley:
“The governor’s lottery scheme is classic ‘counting your chickens before they hatch’ budgeting – and the voters are left with the choice of going along with his plan or paying more taxes. But what the voters demand and deserve is a budget that lives within California’s means.”

Sen. Mark Wyland, R-Del Mar:
“I applaud the Governor’s use of a ‘rainy day’ fund, an approach I’ve supported for years, to protect Californians during tough economic times. I also agree with fully funding education, a plan that Senate and Assembly Republicans recently proposed. However, I do not support a tax increase when we have failed to reduce wasteful spending. It’s unacceptable to punish California families, who are already paying too much in taxes, for the unwillingness of Democrats to control their addiction to spending. I hope the majority party realizes soon enough that the first step toward controlling addiction is admitting that you have problem.”

Assembly Democrats

Assemblyman Alberto Torrico, D-Newark:
"The Governor is gambling with California’s future by relying on a risky scheme to fix a dysfunctional system. The May revise perpetuates a structural deficit that will plague Californians for generations unless the Governor and Legislature make some tough decisions.

The proposed cuts will hit our children, seniors and working families the hardest.

The failure to provide a COLA for our schools amounts to a $4 billion dollar cut that will increase class size, create teacher layoffs, and put at risk educational achievement.

Students who are attending the University of California and the California State University system will have to write bigger checks to stay in school.

The vital services that add to the quality of life for seniors and the disabled will be severely cut.

People who rely on public transit, in this time of $4 a gallon gasoline, will have to hand over more money to climb onto mass transit to get to work or school.

Until we are willing to take a balanced approach that includes sensible cuts and new revenue options, we will fail to make the necessary investments in education, infrastructure and health care that our past leaders made to make California a world economic leader."

Assemblywoman Noreen Evans, D-Santa Rosa:
“It is encouraging to see the Governor join with Democrats in wanting to balance the budget with a blend of spending cuts and revenue increases. As the Legislature reviews his new ideas, it will be our responsibility to make sure that the final budget reflects the values of all Californians.

The good news is that the Governor abandoned his proposals to close many of our beloved state parks. The bad news is that the money to make this possible will be taken from education and programs providing health care and other vital services to California’s most vulnerable citizens. The disappointing news is that the Governor proposes additional debt to balance California’s books this year instead of enacting long term solutions to our financial woes.

There are no easy or desirable choices to get us through our fiscal crisis. We must preserve California’s values with a plan that puts our state on a strong footing into the future. That’s why I am pleased to hear the Governor support Speaker Karen Bass’ proposal to create a bipartisan commission to look at how California can modernize its tax policies for the 21st Century.”

Assemblyman Anthony Portantino,D-La Cañada Flintridge:
“The Governor’s May Revise is actually a step in the right direction for California’s three systems of higher education,” said Portantino. “Although the funding increase falls short of fully funding public higher education, the reversal of previously proposed budget cuts shows that the Governor understands the importance these systems play in educating our workforce and revitalizing our economy. As negotiations progress, I hope the Governor will continue to move toward fully funding all of our public education systems.

I continue to be very concerned that the additional 7.4% and 10% fee increases approved at UC and CSU today have made the promise of higher education unattainable for many. With fees having now increased 100% in the last six years, we simply must find a way to stabilize costs for our students and their families.

I am also concerned about some of our most vulnerable populations - the poor, aged, and disabled, who have become frequent targets of budget cuts year after year. We must find a way to bridge the deficit without balancing our budget on the backs of those who are most vulnerable in our society.”

Assemblyman Lloyd Levine, D-Woodland Hills:
“It is a zero sum game. The lower the revenues, the more we have to cut. Without new revenues, protecting any one part of the budget it is just a shell game.

“We are still 46th in the country in per pupil funding. New York still spends 75 percent more on education than California. By protecting or restoring education funding at the current level we are still going to be under funding education.”

Senate Democrats

Sen. Leland Yee, D-San Francisco:
“Our state deserves better than a budget filled with smoke and mirror gimmicks.

The Governor’s proposal is devastating to the poor, elderly and our state’s most vulnerable at a time when they need help more than ever. Borrowing against the lottery is not the way to raise revenue and does not stop the massive layoffs of teachers and larger class sizes.

As someone who created the largest rainy day fund in San Francisco, I understand the need for a reserve for difficult times. However, you should be creating those reserves during a good economy, as we did in San Francisco during the dot com boom, not during the worst deficit in California history.

It is unacceptable to balance the state budget on the backs of children, teachers, seniors, and the working poor. The wealthiest among us, including yacht owners, should also share in the pain. I hope the Governor and my colleagues on the other side of the aisle will finally join Democrats in closing tax loopholes for the rich and support viable solutions to raising revenue.

While I am more than willing to negotiate on this budget, I will not foreclose on our children’s future.”

Assembly Republicans

Assemblyman Bob Huff, R-Diamond Bar
“I am pleased that Governor Schwarzenegger has fully funded education. However, I am concerned that this budget relies upon ballot measures that have yet to be drafted or approved by voters. I would prefer to see common-sense reforms to jump start our economy and maximize taxpayer dollars.”

Assemblyman Anthony Adams, R-Hesperia
“I am pleased that the Governor’s revised budget plan includes the Assembly Republicans’ proposal to protect education by fully funding Prop. 98 and does not include the Governor’s proposal to release 22,000 dangerous criminals back into our communities.

“Assembly Republicans look forward to working with the Governor to find further savings to reduce the budget deficit without having to raise taxes on California’s hardworking families.”

Assemblyman Joel Anderson, R-La Mesa
“Over the next several weeks, the State of California has to move away from smoke and mirror budgeting to a balanced budget that provides essential funding of our public safety, our classrooms, our parks and other essential services without increasing the burden to taxpayers.”

Assemblyman John J. Benoit, R-Palm Desert
“There are a number of commendable decisions that the Governor made in his budget revisions, as we all work hard to tackle a now-$17.2 billion budget deficit. First, rejecting the proposal of thousands of early prisoner releases merits praise, as California families will not need to worry about endangering their safety to make budget savings. Second, the Governor found savings that allow for the full funding of education at Proposition 98 levels and saving 48 state parks from closure, including Riverside’s own California Citrus State Historic Park. Finally, this budget reduces spending in one of the fastest, unrestrained areas of the budget, Health and Human Services, namely cost-of-living adjustments and pay increases for those on welfare.

“However, there are a number of areas that provoke major concern. If borrowing against the State Lottery fails, a 1-cent sales tax is triggered, which would cost taxpayers $6 billion per year until 2011. This literally puts the balanced budget in a gamble, leaving Californians at too great a risk of a massive tax increase. I think there are other ways we can continue cutting spending and making real structural changes to our programs so we don’t raise taxes on hard-working Californians.

“The Governor is on the right track when he considers that future budgets, in good times, need to limit spending and tuck away savings to cushion for fiscal emergencies like the one we’re currently facing. I look forward to working with the Governor to introduce a real spending cap, which if put in place at the last fiscal crisis, would have kept us with a budget surplus.”

Assemblyman Tom Berryhill, R-Modesto:
“I am encouraged to see the Governor’s plans to fully fund education and abandon the proposal to release prisoners early and close state parks. There is clearly much work to be done on the proposal. Spending is still the problem. Searching for new revenues and areas to borrow and shift funds is not the way to solve the ongoing budget crisis. Only when we take seriously the need for cuts and reforms will we have a balanced budget.”

Assemblyman Chuck DeVore, R-Irvine
“The Governor’s revised budget is an improvement over his January proposal for two main reasons: it fully funds education by not suspending Prop. 98 and it abandons the dangerous plan to release some 22,000 felons from prison before they have served their time. I still have major concerns. The proposal does not address California’s out-of-control spending habits and it proposes a massive, automatic $6 billion sales tax hike – a kind of doomsday tax bomb on hard working California families.”

Assemblyman Mike Duvall, R-Brea
“First, I am pleased Governor Schwarzenegger has heard the message of legislative Republicans and decided to put the public’s safety first. Late last month, several of my fellow Assemblymen from Orange County and I held a roundtable discussion over the proposed early prisoner release and parole termination. We were all, along with our constituencies, very upset about the potential release of over 20,000 hardened convicts back into California’s neighborhoods with our 70% recidivism rate.

“What’s more, I am pleased the Governor has decided to fully fund Proposition 98, though non-monetary reforms to our education system are critical if we want to see improvement. I am absolutely opposed to the Governor’s tax increase proposal. The huge deficit we’re dealing with right now isn’t the fault of taxpayers. It’s the fault of the big government and runaway spending. Californians are losing their homes and struggling with skyrocketing gas and food prices. It’s unfair to ask them to pay for mistakes made in the State Capitol.”

Assemblyman Bill Emmerson, R-Redlands
“The fact that the actual deficit came in at $17.2 billion was not a tremendous surprise. To be sure, we're not going to solve the problem through tax increases. We need to continue to seek reforms to health care that preserve choice and keep costs low to ensure Californians receive the health care they deserve.”

Assemblywoman Jean Fuller, R-Bakersfield
“It is encouraging to see that the Governor’s May Revise fully funds Proposition 98, keeps state parks open and does not include early release of prisoners. However, there are some very concerning proposals which require further review. The Legislature will of course be taking a closer look at all the proposals laid out in the May Revise in the coming weeks and I look forward to working with my colleagues to create a responsible budget.”

Assemblyman Ted Gaines, R-Roseville:
“I am disappointed that the Governor has chosen to ignore common-sense budget solutions. Higher taxes will do very little to stop the recurring roller coaster ride of fiscal irresponsibility.

I firmly disagree with the Governor’s proposal to impose a surcharge on residential and commercial property insurance. California’s homeowners and small business-owners simply cannot afford this new tax and deserve better.

I look forward to working with my colleagues and the Governor to find real structural budget reform that does not include additional taxes.”

Assemblyman Martin Garrick, R-Carlsbad
“I am very pleased to hear that the Governor heeded Republican calls to protect education funding and has decided against the suspension of Proposition 98. Over the last few months, I have met with and talked to hundreds of parents, educators and school administrators about how to best deal with the budget in a way that keeps reductions out of the classroom. While we are a long way from a final budget, I believe the new proposal reaffirms our commitment to keeping education a top priority.

“I still remain concerned with the idea that tax increases and more borrowing are the solution to fixing the budget deficit. Californians are already paying higher prices at the pump, at the grocery store and are facing decreasing home values – a tax increase is the last thing they need.”

Assemblywoman Shirley Horton, R-Chula Vista
“By fully funding Proposition 98 it is clear that the Governor has realized the importance of protecting the vital needs of California’s students. Education is the gateway to a better life, and it is crucial that per pupil spending remain intact to ensure that all our students have the opportunity to excel.”

Assemblyman Doug LaMalfa, R-Oroville:
"I am pleased to see that the Governor’s May Revise to the State Budget does not include his previous proposal to release 22,000 inmates from prison before they have served their time. Public Safety should be a top concern for the State of California, and I am pleased that this dangerous proposal has been dropped.”

“There are some in this Legislature that feel that we must tax our way out of this deficit. The citizens of California did not cause this budget deficit, the big spenders in the Legislature caused this problem. Californians are already paying higher taxes. The state is already receiving more taxes, via the doubling of the sales tax on gasoline. More taxes just heap insult on the already higher cost of living for families. I will continue to join my Republican colleagues in asking that we enact common-sense budget reforms that will stimulate our economy, cut government waste, and not force Californians to pay higher taxes.”

Assemblywoman Sharon Runner, R-Lancaster
“I am glad Governor Schwarzenegger now proposes a budget that more accurately reflects the values of Californians by protecting our children’s education, ensuring the public is kept safe from the early release of prisoners and keeping our state parks open. However, I strongly urge the Governor to remember his commitment to not raise taxes as I will not support a proposal that increases costs to hardworking families who are already paying more for the basics of fuel and food.”

Assemblyman Jim Silva, R-Huntington Beach:
“I cannot support a proposal that allows for the possibility of a sales tax increase. Asking working Californians to pay more, especially at a time when gas and food prices continue to rise, is not an option that should be seriously considered.”

Assemblyman Cameron Smyth, R-Santa Clarita
“I am pleased to see that the Governor decided to increase funding for public education, ensuring that our schools receive the minimum guarantee under Prop 98, even in these tough financial times. I also applaud the Governor for eliminating his initial proposal to release over 20,000 inmates from California's prison system before they have served their time, as well as not closing any state parks. I am concerned however that we continue to rely on stopgap measures, like borrowing against future lottery earnings or a sales tax increase, which amount to nothing more than a band-aid rather than tackle structural deficiencies that will continue to plague our state.”

Assemblyman Todd Spitzer, R-Orange
“When lawmakers passed AB 900 we made a commitment to our communities that dangerous criminals would not be cut loose back onto the streets. The Governor has shown his tough commitment to public safety by dropping his early release proposal, which would have given ‘get out of jail free’ cards to 22,000 inmates. Now that early release has been taken off the table, the Legislature can redirect its attention towards other corrections policy items.”

Assemblyman Van Tran, R-Garden Grove
“I am pleased that the Governor reconsidered his proposal to release prisoners early. Prisoners should serve their time, and Californians deserve to know that they are safe in their homes and neighborhoods.

“I continue to be concerned that the state’s spending does not match its revenues. Each Californian lives on a budget, not spending more than they earn. The state should be following the examples set by these hard-working citizens and not spend more than we take in.”

Statewide officials

Lt. Gov. John Garamendi
"Today’s budget revision does not live up to the promise or the needs of this great state and its people. It sorely lacks the long term structural solutions that will move our state forward and cuts right at the heart of the most vulnerable among us – slashing more than $2 billion from the health and human services January proposal.”

“While some cuts to education were restored, we should be clear that this level of funding will leave our schools and our children's hungry minds on a starvation diet.

"I am also concerned that mortgaging the lottery amounts to California taking a risky big spin -- possibly diverting money that has been promised to education, and balancing the budget with the promise of a future ballot measure.

“There is no question that our state’s chronic structural imbalance calls us to carefully examine our budgeting priorities and to seek reforms that increase efficiency of all state programs. We must remember that the success of the Golden State over the past half century was based on a robust, entrepreneurial private sector matched by state investments that propelled us into the 21st century.”

State Superintendent of Public Instruction Jack O'Connell:
“Teachers, parents, administrators, and paraeducators across our state have joined together over the last four months to illustrate what a devastating impact the cuts proposed in January would have had on our schools. I think it’s clear the Governor has heard the outcry from the education community over his initial budget proposals.

“I welcome his new proposal and retreat from suspending Proposition 98. But to say that education is fully funded in this budget is an overstatement.

“Schools still must absorb the 10 percent cut made to specific programs like class size reduction, counselors, and targeted remediation programs. These cuts remain in today’s proposal and have real-world impact on our students. Many teachers and other essential school staff will still face layoffs, classroom sizes are likely to increase, and there is no cost-of-living increase at a time when the cost of gas, food, and other school essentials is increasing. With the price of gas alone increasing by nearly $1 a gallon over the last year, the failure to fund a cost-of-living adjustment amounts to a serious budget cut in practical terms.

“I realize the Governor has a lot of tough decisions to make, and I commend him for taking the difficult but necessary step of recognizing that we need to raise more revenue. I am concerned, however, about a proposal that relies so heavily on the Lottery alone to fund schools. This scheme does not address the long-term funding needs of our schools. Instead, it gambles on our students’ future by providing one-time funds for schools with a multi-year repayment plan.

“California is already near the bottom in terms of per-pupil spending. The Governor’s budget revision still falls short of what schools need now, and doesn't begin to address what is needed in the long term. I continue to argue that we are long overdue for a conversation about how to adequately and effectively fund public education in a way that invests in California’s future.

“I will continue to work with the legislature and Governor Schwarzenegger to find a budget compromise that meets the needs of our students and all Californians.”

Treasurer Bill Lockyer:
“The Governor deserves credit for offering a plan that recognizes our state needs to deal effectively with both its revenues and its spending. Proposing a statewide tax increase, even if only temporary, takes guts for any California Republican these days. However, this budget still seems to assume that the state’s structural deficit and legitimate spending needs will somehow take care of themselves in future years with a return to a steady increase in revenues. History shows that’s not an assumption that makes for sound fiscal planning.

“My office is reviewing the revenue and debt assumptions used to support the Governor’s state lottery ballot proposal. But I am always concerned about using one-time revenues to finance ongoing state services. And the proposal constitutes a sizable bet that Californians will double their current level of lottery participation within a few years. Whatever the merits, there may not be enough time to make the lottery plan part of an immediate budget solution.

“Right now, the best thing the Governor and lawmakers of both parties can do for California is work together to produce an honest, balanced and on-time budget. We have a smaller cash cushion than we’ve enjoyed in past years. A late budget could force the state to pay a premium of $100 million or more to issue securities to help us maintain cash flow. Tardiness also could cause the state to delay payments to programs and services, which could subject the state to tens of millions of dollars in financial penalties. And if we once again show we can’t enact a budget on time, Wall Street rating agencies could give California another rap on the knuckles. That doesn’t help taxpayers when the state goes to the bond market.”

State Controller John Chiang
“I compliment the Governor for proposing a budget that recognizes that the magnitude of the current fiscal crisis warrants open-mindedness to solutions that impact both sides of the ledger.

“However, the Governor’s budget proposal relies too heavily on risky borrowing and questionable assumptions that could plunge the State into deeper fiscal crisis if they fail to materialize.

“Without a timely budget based on sound assumptions and containing real solutions, the State could run out of cash as early as August and will have no option other than expensive external borrowing to meet the State’s payment obligations. I urge the Legislature to work quickly to enact a solid budget that protects those who rely on government services and paves the way toward long-term fiscal stability.

“My office expects to receive the Governor’s revenue projections next week and will immediately begin testing his budget assumptions and proposed solutions to determine their viability and what impact their success or failure will have on the State’s cash balance. I hope to make those analyses available by the end of the month to assist the Legislature in its difficult task.”

Advocates

Anthony Wright, executive director, Health Access California:
"The Governor’s budget cuts will result in closing the doors to coverage and care for hundreds of thousands of Californians, and further unravel the broken health care system that we all rely on.

"The new cuts that block people from getting coverage is on top of severe cuts already made this, and others still pending, that would reduce access to doctor and hospitals, eliminate basic benefits like dental care, and have people dropped from coverage. As a result, millions of Californians, including children, parents, seniors, and people with disabilities will live sicker and die younger as a direct result of these budget decisions."

Paul Meyer, executive director of the Consulting Engineers and Land Surveyors of California:
“CELSOC applauds Governor Arnold Schwarzenegger for developing creative responses to California’s massive budget deficit. In preparing the May Revise, the Governor faced an extraordinarily difficult situation with no easy answers.

“The Governor deserves credit for crafting a state budget that includes resourceful new ideas for addressing the deficit. Without such innovations as creating a multi-year revenue stream from the modernization of the California Lottery and enacting a budget stabilization act, the state budget cuts would be much worse than those proposed.

“In addition, Governor Schwarzenegger developed a budget that does not mandate permanent tax increases. With California’s economy already hurting, increasing the tax burden would only chase more jobs out of state, slow the recovery and retard new job creation.

“Just as in other areas of the budget, the May Revise cuts some funding for needed infrastructure projects. However, the Governor strongly supports public-private partnerships, design-build and other project financing and delivery techniques that can help offset the loss of traditional funding. We look forward to working with the administration and the Legislature to make those needed reforms a reality.”

Marty Hittelman, president of the California Federation of Teachers:
“The governor’s budget revision tries to protect education, but lacks the funding to do it. Selling bonds based on future lottery proceeds postpones some of the hurt but shifts the burden to adequately fund education and other vital services into the near future.

“It’s time to restore the top income tax bracket and close loopholes like the yacht owners’ tax break. Restoring the top income tax brackets makes good fiscal sense. The wealthy have long expressed the willingness to help pay for California’s schools, but politicians have lacked the political courage to lead
that effort."

“Shifting the bulk of the cuts to health and human services is a disguised cut to
education. These programs aren’t isolated from schools. Our students need to
come to school ready to learn, and they can’t do that hungry or sick.”

“School kids did not cause this crisis,” said Hittelman. “Their teachers and school staff are being confronted with uncertain futures. It’s time to put in place a fair, stable and progressive funding source for education and other vital services.”

“The people of California rely on their schools and other vital public services. A progressive tax policy that asks the people who have benefited the most from living in California to pay their fair share is a reasonable alternative to massive program cuts.”

C. Duane Dauner, president of the California Hospital Association:
"The May Revision of the Administration’s proposed 2008-09 State Budget contains bad news for health care consumers across California. With the state facing a projected $17.2 billion deficit, the proposal released today would result in crushing, disproportionate cuts to the Medi-Cal program - including up to $184 million in cuts to hospitals caring for the most vulnerable in our state. Adding insult to injury, these proposed cuts come on top of more than $1.3 billion in Medi-Cal reductions to all health care providers that were enacted earlier this year and are scheduled to take effect on July 1, 2008.

The additional payment cuts proposed in the May Revise include $22 million for inpatient services provided at hospitals that do not contract with the Medi-Cal program; $54 million in cuts to some public hospitals through the Safety Net Care Pool; and approximately $12 million in payment reductions in the Medi-Cal managed care program. Additionally, hospitals may experience up to an additional $96 million in losses as a result of changes being proposed to Medi-Cal eligibility and benefits.

If these additional cuts are adopted into law, more patients covered by the Medi-Cal program will not receive needed health care services. Some hospitals cannot meet payroll beginning in late June as a result of the 10 percent cuts and payment delays already enacted; other hospitals will be severely affected. It is a lose–lose proposition for both patients and hospitals.

California’s hospitals have a long-standing commitment to ensuring that every Californian should have equitable access to safe, affordable, high-quality, medically necessary health care. But this goal is endangered by the proposed slashing of the Medi-Cal program. California already ranks dead-last in the nation when it comes to funding health care for Medicaid patients. Further reductions only serve to fracture an already broken health care system, while at the same time costing the state in lost matching federal dollars."

Dr. Richard Frankenstein, president of California Medical Association:
"These budget cuts will devastate access to health care for millions of poor Californians and will wreak havoc on the ability of middle class Californians to meet their health care needs. If this budget somehow passes and even a fraction of these cuts go into effect, Governor Schwarzenegger's legacy to the people of California will not be the health care reform he has promised, but instead a health care system damaged beyond belief.

All Californians should sit up and take notice. These cuts will not just take wheelchairs away from the disabled, deprive poor children of access to their critical health care needs, and leave seniors stranded. The cuts will also raise the costs of health care for employers and families, undermine the quality of care in emergency rooms, and shut down doctors' offices, hospitals, pharmacies, and clinics in communities across California.

The health and well-being of all Californians will suffer under this budget.”

Jim Earp, executive director of the California Alliance for Jobs:
“We applaud Governor Schwarzenegger for presenting a budget that ensures the state sales tax on gasoline continues to fund critical transportation improvements. Just 18 months ago, with the support of the Governor, more than 77% of voters passed Prop. 1A - sending an unequivocal mandate and locking in constitutional protections that ensure the state sales tax on gas can only be spent on transportation improvements. The Governor has kept faith with the voters with his May Revise.

“Preserving transportation funding is absolutely essential in today’s economic downturn. California has a significant backlog of transportation improvement projects that need funding now. The longer we wait to address these problems, the more costly they become – further stretching scarce local and state dollars. What’s more, maintaining the steady flow of transportation funding will help provide some stability in the construction sector, which is facing a significant slump that is hindering our economy.

“We recognize that today’s Revise is just the start of a long, difficult budget process. The Alliance and other transportation stakeholders will be vigilantly participating in this process to ensure any final budget is responsible, and protects vital transportation funding.”

Teresa Casazza, president of the California Taxpayers’ Association:
"We take no pleasure in today's May Revise. No one who lives and does business in California should. What we must take away from today is a sense that California's budget structure must be addressed with the same urgency as education, health care and the environment.

"We commend the governor’s thoughtful approach to the $24.3 billion deficit and his commitment to fixing the broken budget process that is crippling California’s economy.

“We support the governor’s work toward getting the state’s fiscal house in order without increasing the burden on California’s taxpayers, who already are struggling to pay their bills in these tough economic times. The governor wisely rejected the tax increases on homeowners, seniors and struggling businesses, suggested by the legislative analyst and others.

“An economic rebound in the private sector is the key to increasing state revenue. The governor’s plan to increase state revenue by making voter-approved changes to the Lottery deserves an honest review in the Legislature, as it could help balance the budget without new taxes.

“Budget reform also remains vital. We need to change the system that led to the chronic structural budget deficits, so it doesn’t happen again. If we don’t create a rainy day fund to establish a cushion in tough economic times, many problems will remain even when the economy rebounds.”

Cathy Maupin, interim executive director of the California Children's Defense Fund:

“In a state with the 8th largest economy in the world, it is a moral outrage that cuts to foster care, health coverage, cash assistance for children, and food programs are even being considered. Our policy makers must recognize that every step taken to improve the lives of children improves the lives of all Californians. Instead of structuring our state budget to address the urgent needs facing millions of California’s families, the Governor proposes once again to balance the budget on the backs of our state’s most vulnerable population: children."

“In many cases one family will feel the effects of multiple cuts simultaneously. For example, the same child receiving CalWORKs may experience a freeze in her cash benefits, be disenrolled from health care, and have her food assistance benefits reduced. Maupin continues, “In the midst of an economic downturn when gas and food prices are skyrocketing, we have a moral responsibility to meet the needs of children, and should respond to an economic downturn as we respond to any other type of disaster or crisis that requires increased resources and attention.”

Joshua Shaw, executive director of the California Transit Association:
"We acknowledge that the governor worked hard to find a way to maintain the current year’s funding, but we expected more last year – we believe we were legally entitled to it, and we know Californians want and need better transit service – so more of the same is nothing to be happy about.”

“That three hundred and six million is equal to the STA for 07-08, so they claim to be holding transit harmless. While it’s not technically a net reduction, it’s clearly a significant amount less than the voters intended to provide to transit when they enacted numerous measures over the years designed to spend transportation taxes on transportation programs.”

“Given that fuel prices are driving more and more people out of their cars and on to buses and trains for their day-to-day mobility, this is the worst possible time to continue this trend of massive cuts to transit funding. Transit providers are seeing ridership surge to record levels and beyond. Many are actually having to turn away passengers. Yet their ability to keep up with demand keeps moving in the opposite direction.”

Annelle Grajeda, president of SEIU California State Council and SEIU Local 721:
“We need our elected leaders to understand that the people of California will not accept cuts that hurt our children, seniors, and communities.

“The proposed budget reflects a short-term mentality, but we’ve got a long-term problem on our hands. Cuts that yield quick savings now but create costly problems later are unwise. This budget is a missed opportunity to move the ball forward.”

Ted Lempert, president of Children Now:
“It’s mind-boggling that too many of our state's leaders still can’t see the shortsightedness of cutting children’s health, education and economic support. California’s children currently are well behind national average measures of well-being and per-child funding. It’s also clear that investment in these programs today will reduce the state’s future costs and increase its future revenues. Yet California continues to make decisions that are leading us closer and closer to a next generation that can’t support our human capital needs and increasingly overburdens public costs. We’re shortchanging our future in big, bad ways.”

Tom Porter, California state director AARP:
"AARP is extremely disappointed with the Governor’s 2008 May budget proposal, announced today. Far from improving upon his initial budget proposal, the Governor’s budget revision proposes even deeper cuts to critical services to the most vulnerable Californians.

AARP believes that highest priority in the budget process should be given to programs that serve the state’s most vulnerable populations – specifically low-income children, as well as disabled and older adults. The budget should not be balanced on the backs of these most vulnerable Californians. We believe our elected leaders should fully fund the “safety net” programs that are critical to the well-being of those who cannot care for themselves.

Further, our health care system is failing. Drastic cuts have already weakened these critical programs. If approved, the Governor’s new proposal means fewer people will have access to services and the health care crisis will simply get worse.

AARP believes that policymakers should consider revenue enhancements rather than cut services to California’s most vulnerable persons."

Jim Metropulos, senior advocate for Sierra Club California
“We are happy that Governor Schwarzenegger responded to the public’s overwhelming call to keep our parks open. Still, this year's budget proposal does nothing to ensure the long-term stability of the chronically underfunded Department of Parks and Recreation. We’ll continue to work with the governor and the California Legislature to create a stable funding source for these special places.”

From the blogs:

Dan Weintraub, Bee columnist on Capitol Alert:
Schwarzenegger can't -- or won't -- balance the budget.

Schwarzenegger's press staff is furiously trying to portray the lottery deal as something other than borrowing, but borrowing it is. California Insider

Joe Mathews, senior Irvine fellow at the New America Foundation:
There is no longer any doubt about one thing in California politics: Gov. Schwarzenegger is willing to die on the cross of budget reform...

For a man with a reputation for twisting with political winds, he is doing the opposite here, trying again to pursue reforms as he did in 2004 and 2005. He is so determined to get voters to adopt his budget reform (a spending-side proposal based on a rainy day fund and more power for governors to make mid-year cuts) that he is risking what's left of his governorship. Blockbuster Democracy blog

Former Assemblyman Keith Richman, R-Northridge:
To paraphrase Yogi Berra, "It's déjà vu all over again". Fox and Hounds

Anthony Wright, executive director of Health Access
The cuts are here, and they are bad. Health Access blog

Bob Walsh at PacoVilla blog
Some leadership, huh? Either sell off a money making asset for a short-term gain or get your knees broken.

Chris Reed, San Diego Union-Tribune
So is everyone finally clear on this? Arnold's plan "fully funds" education under Prop. 98. Arnold's plan includes a real-dollar increase in spending on education. The money that's lost? "Anticipated revenue," not legally mandated spending. Calling "anticipated revenue" that doesn't come a "spending cut" is like a worker calling a raise he didn't get but expected a "pay cut." It's idiotic. America's Finest Blog.

Posted by Shane Goldmacher on May 14, 2008 12:19 PM