LAST UPDATE: 6:00 p.m.
Lt. Gov. John Garamendi:
"The budget proposed today fails a very simple test: It does not meet the needs of California. Thirty years ago, I began my career in public service hopeful that our state could do more to improve the lot of California’s families. Sadly, the budget debate today is about how our people can get by with less – less education, less healthcare, and fewer opportunities for the future.
"California is at a crossroads. We know we can no longer paper over the fiscal challenges that confront state and local governments, but neither can we abandon our moral responsibility to protect the most vulnerable, or compromise the historic promise of our Golden State. Over the next six months, we face a critical decision -- whether to continue to invest in our future or abandon the historical commitment that made the Golden State. With a powerful and diverse economy, a capable and motivated workforce, and extraordinary entrepreneurs, educators, and research facilities, we stand on a strong foundation. I know that working together we can once again meet these challenges and emerge stronger in the years ahead."
State Treasurer Bill Lockyer:
"The governor’s plan contains some positive features, but doesn’t offer a road map to the long-term fiscal stability we need to build the future we want for California. To permanently fix our financial house, to ensure we can pay for vital services and the infrastructure we need for our growing state, we have to change not only the way we spend money, but the way we raise money. The governor’s plan is missing that important ingredient. By not yet seriously addressing the revenue side – including the shortfall of federal money due California – the proposal fails to evenly apportion sacrifice to help us get through these tough times.
"The governor's proposals to help the state build rainy-day reserves and make mid-year corrections when revenues fall short are good ideas in principle. I endorse these concepts. But the key is just how each would be implemented, and neither should unduly harm schools. The governor’s method for achieving 10 percent spending cuts is a good way to start the important dialogue about priorities with the Legislature. My office not only will accept the proposed cuts, but also hopes to take actions that will raise additional revenue for the state.
"I also applaud the proposal to continue making the investments we need to repair and strengthen our infrastructure. But I believe those investments should include bonds to make state buildings more energy efficient, which can save taxpayers hundreds of millions of dollars."
State Controller John Chiang:
"The horrific fiscal hit this budget proposes on our schools and our most vulnerable residents, including low-income families, foster children, seniors and the disabled, is a prime, but painful, example of why we need long-term budget reform. California’s budget relies heavily on the personal income taxes paid by our wealthiest residents, specifically the capital gains and dividends earned by the top five percent of tax payers. Those revenues rise and fall with the stock market, resulting in California’s boom-and-bust budgeting. While the governor’s budget stability proposal is on the right track, I believe we should target the core cause of the volatility and tap and store only excess capital gains revenue during good years for use in the next economic downturn. Programs may not get as big a bump during the flush years as they would like, but they would less likely face the huge cuts the governor is now proposing.
"Although my plan would address California’s future budget problems, we must immediately face the current crisis. Everything should be on the table. But if we talk about raising taxes, we must ensure the State’s spending plan is accountable to those footing the bill, and that Californians are confident they are getting at least a dollar’s worth of service for every tax dollar they pay.
“We also should look at both sides of the ledger. Five years ago, the Department of Finance reported California provided $24 billion in tax breaks. This year, tax breaks total $50 billion. While some of these breaks may be fiscally sound, we must be able to empirically measure the impact of all future tax credits and exemptions. I propose we require periodic review of all new tax breaks to determine whether they are producing the intended benefits and should be cut, continued or expanded. Making government accountable to the public it serves will go a long way in inspiring taxpayers' confidence and their support during these tough fiscal times."
Dale E. Bonner, secretary, Business, Transportation and Housing:
"As Governor Schwarzenegger acknowledged in his announcement, fiscal year 2008-09 is going to be financially challenging for California. Fortunately, the governor understands that even during a difficult budget situation, we still need to maintain California’s infrastructure investment to continue the state’s economic growth, create jobs, and improve quality of life for all Californians.
"California’s current budget challenge has not changed our critical need for infrastructure investment. In his State of the State address, Governor Schwarzenegger proposed enhancing his Strategic Growth Plan with two new features. The first, Performance Based Infrastructure California will allow projects to be completed in an innovative yet efficient manner, while lessening the burden on taxpayers. The other, the creation of the Strategic Growth Council, will coordinate the activities of state agencies and the investment of funds in state-owned and state-funded infrastructure, ensuring the long term success of these investments.
"The governor will continue his ongoing commitment to prepare California for the future by addressing critical gaps in the state's infrastructure. Californians demonstrated their support for infrastructure investment in November 2006 when voters overwhelmingly passed the bond measures. It is vital that we continue our infrastructure rebuilding progress and deliver positive results to the people of California."
Assembly Democrats
Assembly Speaker Fabian Núñez, D-Los Angeles:
"The budget proposed today is what a cuts only budget looks like and the proponents of a cuts only approach need to own it. This budget isn't going for an up or down vote today. Clearly if passed as written, it would cause a lot of permanent harm. It's time for creative thinking and courageous action. This budget isn't particularly creative or courageous. But if we have the will, and we stand up for California values then the ultimate budget solutions we come up with can be."
Assemblywoman Patty Berg, D-Eureka:
"The governor says the system is broken, but then he says we have to live with whatever the system spits out -- even if that means closing parks, socking it to the students and ignoring the elderly, poor and disabled. We have real problems, but this is an overly pessimistic solution. This budget is asking us to abandon our values."
Assemblywoman Wilmer Amina Carter, D- Rialto:
"This budget crisis is not just a spending problem; it is also a revenue problem, and we must find solutions that will keep in mind that all options have to be on the table to get ourselves out of this situation. We must not unduly impact our children, the elderly, the working class as well as the middle class. Making tough decisions to cut spending is necessary. I am personally doing my part by voluntarily reducing my base operating budget by 10 percent; however, cutting spending alone won't solve the problem."
Assemblywoman Noreen Evans, D-Santa Rosa:
"Professor Schwarzenegger needs a refresher course on California values. His budget reflects the values of the extreme right wing, not the majority of Californians. If implemented, the governor’s proposals would unravel the pillars of our good life in California. In the name of fiscal discipline, the governor wants to gut public education, safety nets for the poor, public safety, and environmental protection. But he's also proposing billions in additional bonds. The repayment of existing bonds has contributed greatly to our current budget crisis. So, rather than leading us out of a financial hole, the governor is grabbing a shovel to dig us in deeper. The governor should focus on solutions that appeal to Californians, not his Republican colleagues in the Legislature who want us to cut our way out of this budget crisis."
Assemblymember Lloyd Levine, D-Van Nuys:
“Governor Schwarzenegger’s proposed across the board cuts and a spending cap as a solution to our budget problem sounds all too familiar. While cuts will be necessary, across the board cuts are the same type of irresponsible, slogan politics that helped create the problem in the first place. Is the governor suggesting that our state firefighters who were stretched to the limit in the recent wildfires take a 10% cut? What about our schools? Is he proposing to cut K-12 education by 10%? Law enforcement? Will anyone feel safe in their communities if we reduce law enforcement by 10%?
" 'Across the board cuts' makes for a great sound bite, but lousy policy. I find it disingenuous when the governor draws a line in the sand on taxes and defends his decision to end the Vehicle License Fee, then promptly decides to raise funds by adding an $11 'fee' on top of what it already costs for Californians to register their vehicles. In addition, it makes no sense to propose borrowing billions more dollars for California’s infrastructure while simultaneously proposing to close 48 state parks.
"What California needs most right now is leadership. California needs leaders who aren’t afraid to make tough decisions. California needs leaders who aren’t afraid to tell the truth. We don’t need slogans or sound bites or tired ideas. Californians are responsible and intelligent people who can handle the truth. They just need someone to tell it to them.
"Our state is in a dire fiscal situation. It has taken a long time to get here and it is not the result of any one policy or person. It is going to take a lot of hard work by all Californians to solve this problem. I don’t blame the Governor for the entire problem, but I do fault him for not exhibiting the leadership necessary to level with the people.
"It's time for the governor to take a stand – the easy fixes are over. There is no more wiggle room or ability to simply paper over budget deficits with surpluses squirreled away for a rainy day. It’s time to lay all our options on the table and give the people more than just gimmicks, sound bites and recycled ideas."
Assemblywoman Fiona Ma, D-San Francisco:
"As a certified public accountant, I know that the revenues and expenditures must add up. The California State Assembly is leading by example by reducing our expenditures by 10 percent, but the governor’s call for across the board 10 percent cuts defies common sense. The governor’s approach ignores the fact that some programs are more wasteful or less important than others. It turns a blind eye to loopholes that could be closed, misses efficiencies that could be achieved, and lacks new commitments that would grow the economy and provide jobs in California, such as reforming our outdated corporate tax apportionment system. It is also crucial to remember that for every tax dollar California sends to Washington, D.C., this Republican White House returns just 79 cents. No long term budget solution can avoid this federal funding disparity."
Assembly Republicans
Assembly Republican Leader Mike Villines, Clovis:
"The budget unveiled today by Governor Schwarzenegger is only the first of many steps that must be taken to get the deficit under control. Assembly Republicans share the governor’s commitment to budget reform and no tax increases, and will introduce proposals to help fix the system.
"We believe the only responsible way to solve our budget problem is to cut wasteful spending and start living within our means. While the choices before us are difficult ones, across-the-board cuts, including the Legislature’s budget, are a good way to start the discussion about how to cut spending because they avoid picking winners and losers. One thing is clear – higher taxes will do nothing to solve the problem and Republicans will stand united in rejecting any attempt to raise taxes.
"Republicans believe lawmakers must approach our $14 billion deficit with great urgency, and stand ready to work together with the Governor and Democrats to make the tough but necessary choices to balance the budget and reduce the deficit, without raising taxes."
Assembly Republican Caucus Chair Bob Huff, Diamond Bar:
"It is clear that difficult decisions must be made with a $14 billion dollar budget deficit and that real cuts must be made. I will not support tax increases to solve this long standing overspending problem during difficult economic times being felt by many in our state."
Assembly Budget Committee Vice-Chair Roger Niello, R-Fair Oaks
"We’re facing an ‘ugly’ fiscal year that we aren’t going to be able to cram into the same glass-slipper of fragile, see-through gimmickry. The time for accounting maneuvers is over. The right fit this time around must involve creative solutions that acknowledge the size and scope of our budget deficit."
Assemblyman Anthony Adams, R-Hesperia:
"Governor Schwarzenegger’s budget proposal is only a starting point that sheds some much needed light on the severity of California’s fiscal crisis. It is now up to the legislature to begin the serious work of crafting a real budget that will meet the needs of all Californians. There is hope for California and bright future ahead of us. But we will only get there if we commit to embracing real change in the way we craft our budget."
Assemblyman John J. Benoit, R-Palm Desert
Our government needs to get back to the basics and stop wasting taxpayers’ hard-earned savings on pet projects and new bureaucracies. I firmly believe that any conversation must include talk of a real spending cap — a Gann-type inspired cap — that ties spending growth to inflation and population growth, and forces the state to live within its means. Across-the-board cuts, now necessary, would not have been had that cap been in place. What we must not do is forget what the government’s primary role has always been — protecting the public’s safety. The state of California cannot let 50,000 prisoners go free without jeopardizing the safety of California’s families. As a 31-year law-enforcement veteran, I feel it is my duty to adamantly oppose the early release of criminals into our communities."
Assemblyman Tom Berryhill, R-Modesto:
It is clear that the time has come to address this fiscal mess once and for all. What the governor has proposed represents the starting point for what we must accomplish. The days of ‘balancing’ the budget with smoke and mirrors and more borrowing are long passed. Tax increases are not the answer. This has been proven over and over again. We must cut and we must cut precisely and with great care to ensure that public safety is left strong and able to provide the protections we all expect of them. We must also enact real structural reforms to the budget and the budget process so that we can have a strong and healthy budget from here on out. Only when this is done can we focus on the issues we are here to address: public safety, education reforms, health care, and rebuilding our infrastructure."
Assemblyman Mike Duvall, R-Yorba Linda:
“An across-the-board cut is a good first step towards solving California’s structural deficit, and I applaud the governor for having the courage to propose it. Nobody likes picking teams. In grade school we all feared not getting picked — but now the opposite is true — nobody wants to be the one group that is picked to shoulder the budgetary burden for others. A scorched earth policy is the best one possible right now — though unfortunately (and unfairly) it is the Legislature’s excess and malfeasance that’s getting everyone burned.”
Assemblyman Ted Gaines, R-Roseville:
"California is facing a huge budget crisis, and our $14 billion deficit calls for strong and swift action. We must recognize that across the board budget cuts are a necessity in these dire times. The Legislature has overspent for far too long, and we should not punish hardworking California families with higher taxes to feed Sacramento’s spending addiction.
"We must also look for outside-the-box solutions to address the problem, and we should start by auditing every state agency to find and eliminate waste and fraud. As a small business owner, I understand that taxes and regulations are already burdensome, and look forward to working with the governor to continue to find ways we can eliminate wasteful government spending and solve our state’s severe budget crisis.”
Assemblywoman Bonnie Garcia, R-Cathedral City:
“If we keep spending on autopilot…Welcome to the State of Denial.”
Assemblyman Doug LaMalfa, R-Oroville:
“There is no doubt that we are going to have to make some very difficult decisions this year. California will face an uphill battle in order to find solutions to our $14 billion dollar deficit caused by this current budget mess. We must reduce spending to meet this challenge while protecting our most important mission, public safety. Hard-working Californians should not face higher taxes and fees because the big spenders in Sacramento refuse to reform. The California Legislature must finally learn to live within its means. I am committed to working with the Governor and my Republican colleagues to reduce spending, and I will continue my stance to oppose any budget that includes tax increases.”
Assemblyman Jim Silva, R-Huntington Beach:
“The time for gimmicks, papering over the gaps and borrowing must come to an end. Getting spending under control and reforming the budget process are the keys to restoring fiscal sanity in California.”
Assemblyman Cameron Smyth, R-Santa Clarita:
“I look forward to working with the governor to continue to find ways to cut wasteful government spending without raiding local government. I have faith that my colleagues and I can sit down, put partisan politics aside, and make responsible decisions regarding the budget without raising taxes. It is not how we react in the good times, but how we respond to the challenges in the tough times that show our true character and resolve as a state.”
Assemblyman Todd Spitzer, R-Orange:
“Just a few months ago, I stood with the governor opposing a three-judge panel’s attempt to release prisoners early from prison. It was the rallying cry to pass AB 900. Now, just four months later, the governor is reversing himself and is proposing the release of 22,000 lawfully sentenced prisoners prior to the end of their sentences. In the same exact speech, he said that, ‘…all of these people think exactly the way we think, and they know exactly what we know, that releasing criminals back into our streets will be a public safety disaster, and it is absolutely unacceptable.’ I just can't reconcile the two positions. Releasing 22,000 is a non-starter for Republicans and we will not jeopardize the public’s safety.”
Senate Democrats
Senate President Pro Tem Don Perata, D-Oakland:
"I believe it goes back to the fundamental question: What kind of state do we want? The governor’s budget really has to be a vision. It’s got to be a vision that decides: Do we want to be in the 40s (in national rankings) when it comes to education? Do businesses want to keep California in the 40s when it comes to education?
"We have to think very clearly right now how we can shape the state consistent with the money that we have. And then, we’re going to have to decide what else is necessary to have the state that we want. It’s not too complicated.
"This is a bipartisan house. It’s led by a Republican governor. There are members who got elected here from a different party than mine, but for the same reason that I did, to represent the interests of the people. We’re going to find what those commonalties are.
"All things are cyclical, and during down times there are opportunities. And if we can begin to make some changes that will avoid the next time this happens, we will. If all we want to do is to just get through to the next year or the next six months, we’ll fail in the long term.
"We've got a lot of bond money where if we can get it out the door and put people to work, it’s public works money. The governor has been quoting FDR. This is what FDR basically did. We did that (passed the infrastructure bonds) a couple years ago. There’s no reason why we can’t be putting people to work in droves, but we’ve got to get the stuff out the door."
Sen. Ron Calderon, D-Montebello:
"I deeply appreciate the challenge faced by Governor Schwarzenegger in trying to erase a $14.5 billion deficit. But the budget he proposed today sacrifices the promise of California’s future to maintain a status quo that fails to meet the needs of those who depend upon government most.
"By proposing a $4.4 billion cut to education, the governor is turning his back on our school children, sowing the seeds for an ill-prepared work force that will be unable to meet the needs of our future economy.
"By proposing a $4.7 billion cut to health and human services, the Governor is abandoning impoverished families, children, seniors the infirm and disabled who can’t afford medical or dental care. These cuts, along with a proposed $462 million reduction in spending for CalWORKS, will rob the state’s neediest residents of the hope of a brighter future.
"And while the governor wants to enlarge our state's increasingly burdensome debt by borrowing $38.3 billion more this year, his budget lacks proposals that would stimulate the state’s flagging economy through private sector job growth and retention.
"The fiscal crisis we face can only be met through daring leadership that is willing to challenge the status quo, while protecting those of us who are most vulnerable. Unfortunately, the governor’s budget fails to meet this standard."
Sen. Dean Florez, D-Shafter:
If the governor is looking at rural Arkansas as a model for addressing California’s budget issues, perhaps California is just too big of a state for him to handle. Making across-the-board budget cuts is simple-minded. The governor is simply afraid to tell us what his priorities are – how can you not have priorities? It’s a simple-minded way for a politician not to take responsibility and it smells of desperation. I think the governor has finally run out of rope. Now’s the time for real leadership, but it looks like he’s simply throwing in the towel. I'm ready to work with the governor to come up with a smart budget solution, but we’re not going to get there when the governor gives every function of state government the same weight. For example, cutting corrections by 10 percent could mean early release for prisoners – and I’m certainly not for that."
Sen. Jenny Oropeza, D-Long Beach:
“As a former budget chair, I believe the governor’s call for 10-percent, across-the-board cuts is the least responsible way to balance a budget. This is like using a blunt hatchet instead of a sharp scalpel. Just as school scores are beginning to show improvement, the governor calls for suspension of Proposition 98 and additional cuts that give no consideration to the work and investment already made. His proposed cuts to transportation funding are especially hard on local governments that have already made plans for regional improvements. This is contrary to what residents have repeatedly made clear: Gas taxes and related projects should be for transportation improvements — not balancing the budget. I do not believe most public servants in policy-making positions today could sleep soundly knowing the damages that would result from these cuts. Californians deserve better.”
Sen. Jack Scott, D-Altadena:
The state’s fiscal challenges are real. Nonetheless, I am concerned and dismayed by the governor’s proposed cuts. The state's fiscal challenge cannot be met simply by cutting. When you are trying to fix the engine, you cannot do so if you have only half the tools in the toolbox at your disposal. All options, including increasing fees and closing tax loopholes, must be on the table.
"More specifically, I am distressed by the governor’s proposed cuts to Proposition 98 and higher education in the future. In the 2008-09 fiscal year, the governor proposes to suspend Proposition 98, reducing overall funding for K-12 schools and community colleges by $4.4 billion or 9.2 percent less. Make no mistake; these are draconian cuts that represent a real hit to schools and community colleges.
"For UC and CSU, the governor proposes to fully fund his compacts with the universities, providing funding for basic budget support, enrollment growth, and core instructional needs. However, the governor then subjects these same budgets to a 10 percent across the board cut. The net effect is a significant funding reduction to UC and CSU. I am left wondering if the governor would suggest that UC and CSU deny entrance to 10 percent of incoming students. One of the governor’s solutions is to dramatically increase student fees, which is a tax on students, a group least likely to be able to pay. Under any scenario, cuts of this magnitude to higher education will negatively impact access. This in turn negatively impacts our state’s future, for higher education is absolutely essential to our state’s economy. "
Senate Republicans
Senate Republican Leader Dick Ackerman, R-Irvine:
“I agree with the governor, we cannot tax our way out of this problem. We must regain control of spending and live within our means. As we move forward, the level of spending the Governor has proposed must be viewed as a ceiling and not a floor. Every decision this legislature makes between January and June from sub-committee to the Floor must be made with an eye on the state’s bottom line. We need to act quickly and responsibly if we want to reduce the impacts of our current fiscal emergency. This includes making mid-year adjustments. Now is the time to debate the state’s needs, prioritize them appropriately and ensure adequate funding for the most important first.”
Sen. Sam Aanestad, R-Penn Valley:
“It is time that California gets its fiscal house in order and the governor’s proposed budget is only a start. The real question is if it will be a good end – a balanced budget with no tax increases. I encourage the governor to work with Republican members to achieve those goals.”
Sen. Dave Cogdill, R-Modesto:
“I really appreciate that the governor continues to hammer on the fact that what we have is a spending problem, not a revenue problem. Projections show that revenues are up $3 billion and yet we are woefully in the red. We simply have to rein in our spending – there’s no way around it. While I don’t agree with all of the cuts proposed by the governor, there are many that I do. We need to immerse ourselves in the details of the budget, prioritize our spending appropriately, trim the fat and the wasteful spending, and only then will we attain a balanced, fiscally responsible budget that makes sense and does not raise taxes.”
Sen. Dave Cox, R-Fair Oaks:
“Now is the time to roll up our sleeves and tackle this budget crisis. In the past, my colleagues on the Democratic side of the aisle have led negotiations with little or no input from Republicans. My experience tells me that not engaging both Republicans and Democrats in this process will do an extreme disservice to those who elected us to make the tough decisions. The people of California demand and deserve more than partisan rhetoric. I want to encourage legislative leaders in both houses to fully engage all members and go through the budget program by program to set our priorities. It is only with true inclusion and discussion that we will be able to put our fiscal house back in order."
Sen. Jeff Denham, R-Atwater:
“As we face this budget deficit, California must focus on its two core priorities – education and public safety. While suspending Proposition 98 may help balance the state’s budget, why should our children suffer? After all the progress we have made in education, now the governor wants to punish our kids because he didn’t make the spending cuts he needed to make last summer. I find it appalling and will not support suspending Prop. 98. I’m trying to remember the last time I heard a Californian call and ask me to release prisoners back on the street. The answer is never! Releasing alleged ‘non-violent’ offenders may help the state’s budget, but what happens to the local city and county budgets. They have to invest more in public safety to prevent property, gang and drug crimes as these individuals are back on their streets. This proposal is ludicrous.”
Sen. Bob Dutton, R-Rancho Cucamonga:
“Two decades ago President Ronald Reagan said, ‘The problem is not that people are taxed too little; the problem is that government spends too much.’ It’s clear to me that although we are in a different time, we have the same problem.”
Sen. Tom Harman, R-Huntington Beach:
“This budget proposal recognizes that our state has a spending problem, not a revenue problem and provides a compass for the Legislature to work together on finding solutions by proposing to reduce the growth and expenditures of government. The problem is laid out for all to see – this Legislature, led and controlled for years by the liberal majority, spend your money like there is no tomorrow. At first glance, the Governor Schwarzenegger’s budget appears to be balanced by resisting new taxes; however I am deeply concerned about the methods used—relying on more borrowed money, imposing new fees and making cuts to public safety. Obviously much more must be done to rebuild California’s fiscal house.”
Sen. Dennis Hollingsworth, R-Temecula:
“By no means can we solve California’s budgetary problems by raiding the taxpayers’ wallets. Though cuts are never easy, with over $140 billion annually flowing into the state’s coffers it is clear that we must cut the fat from the bloated Sacramento bureaucracy. The governor is moving in the right direction by proposing a budget that by-and-large adheres to these principles through spending cuts and constitutional reform. In the coming weeks, the Legislature needs to work quickly to prioritize where the cuts come from, in such a way that protects public safety, and to eliminate any hidden taxes.”
Sen. Abel Maldonado, R-Santa Maria:
“We are facing a very difficult year ahead. I agree with the governor that we need to reform our budget process now. We are stuck in a vicious cycle of spending more and more, and our finances are spinning out of control. We must work together to find a way to fix our budget problems, and we must start now. However, I am very concerned with the governor’s proposal to cut education funding. We cannot punish our children for the Legislature’s inability to budget efficiently. We cannot balance the budget on the backs of our children. I look forward to working with my colleagues on budget solutions that help alleviate our current fiscal crisis but do not jeopardize our state’s most important priorities.”
Sen. Bob Margett, R-Arcadia:
"The governor’s proposed budget shows difficult decisions will have to be made during these tough times to solve California’s fiscal crisis. The seriousness of California’s deficit necessitates the Legislature and governor come together and fix the structural problems that consistently leave us in the red.”
Sen. George Runner, R-Lancaster:
“2008 is the year of budget reckoning for the governor and the Legislature. It will be the year we return to old fashioned ideas like spending within our means and reprioritizing government obligations to taxpayers if we are to balance our books and pave a better financial future for generations of Californians.”
Others
Louise Hendrickson, president, University of California Student Association:
"Students know that it is a bad budget year. But funding for young people is an investment. An investment that has to be made even in bad budget times for our state to prosper. It is an insult for the governor to label this the 'Year of Education' and not address the declining state funding for the University of California system. Over the next five months of the budget process students will work vigorously to restore funding to the UC System. We will be registering voters, attending budget hearings, rallying at the steps of the capitol and sitting in the offices of our legislators until an investment in the University of California is seen."
John Kabateck, executive director, National Federation of Independent Business/California:
"NFIB/California appreciates the governor's recommendation for tough cuts throughout California. As small business owners know, when income projections do not meet expectations, cuts must be made in order to keep the doors open. The governor's budget proposal justly recognizes that increasing small business taxes would hamper the ability of California small businesses to create new jobs and greater state revenue at a time when both are gravely needed. In light of this fiscal crisis, we urge the governor and Legislature to re-evaluate the cost of the proposed health-care reform measure, AB 1X. Not only is this the worst time for California to take on an additional $14 billion in burdensome costs, the measure has not addressed the most important aspect of health-care reform - affordability. We encourage the governor to first fix the deficit facing California and then go on to a meaningful discussion of health-care reform which includes affordability, accessibility and transparency."
Robert C. Dynes, UC president:
"This budget proposal will have serious impacts on our ability to deliver on our mission for our students and for the people of California. State funding for the university is not an expenditure but an investment – an investment that produces real returns through an educated workforce, a dynamic economy, job creation and new tax revenue. We appreciate the magnitude of the state’s current budget problem, and we intend to examine this proposal closely in consultation with the Regents, beginning at their January meeting. And then we intend to work energetically with the governor and Legislature in the coming months to minimize the impact, to the greatest extent possible, on the quality, affordability and public benefit of the university’s programs."
Teresa Casazza, acting president, California Taxpayers’ Association:
"The governor has wisely avoided piling new taxes on Californians at a time when a record number of people are losing their homes because they don't have enough money to pay their existing bills. In poll after poll, and in election after election, Californians have made it crystal clear that they want lawmakers to budget existing revenues wisely, not take more money from taxpayers and their families. Governor Schwarzenegger is following the will of the people by sparing taxpayers and by addressing the real problem that has thrown the budget out of balance – growth without limits."
Paul H. Chatman, president, California School Boards Association:
"California is near the bottom of the 50 states in per pupil funding with the highest academic standards in the nation. By suspending Proposition 98 and making crucial cuts to education, the governor's budget will drive us even lower and reveals a shocking lack of recognition of the real needs of kids and schools. The education community will not agree to anything until and unless the governor and the legislature put all of their cards on the table, including a debate about revenues as well as expenses."
Jim Hard, president, SEIU Local 1000:
"Across-the-board cuts in vital state services are fiscally irresponsible when the state’s chief executive isn’t keeping our financial house in order. Why should Californians suffer the budget knife when the state isn’t collecting billions in unpaid taxes? ... Before we slash programs or raise taxes, we must collect the billions of tax dollars we’re owed."
Kim Barrett, immediate past president, Chief Probation Officers of California:
"We commend the governor for working hard to present the Legislature with a fair and balanced budget in an extremely tough budget year. However, we are concerned about the proposed cuts to our already overstressed probation services. The proposed cuts could largely impact our juvenile and adult rehabilitation services, supervision of dangerous offenders and education and work programs for probationers. We do look forward to working with the governor and the Legislature to include funding for adult probation services in the final budget in order to save the state millions of dollars on prison spending. While we understand the need to tighten our fiscal belt, we must ensure that we do not jeopardize public safety or proven programs that cut crime, victimization and save prison costs because of budget cuts."
Tom Porter, state director, AARP California:
"In his proposed state budget for 2008, Governor Schwarzenegger calls for across-the-board spending cuts to address California's current fiscal difficulties. AARP strongly disagrees with this approach. It is an abdication of responsibility for our elected leaders to avoid making tough decisions on budget matters. If cuts are necessary, it is the duty of our leaders to prioritize public spending, not simply avoid the issue by cutting everything equally. AARP believes that highest priority 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. If lower priority programs are to be funded, AARP believes that policymakers should consider revenue enhancements rather than cut programs for California’s most vulnerable persons."
Mark Watts, executive director, Transportation California:
"In fully funding Proposition 42 and moving aggressively forward with Proposition 1B implementation, the governor has signaled that transportation remains a critical priority. Governor Schwarzenegger recognizes that cutting transportation infrastructure projects would only weaken the economy, reduce employment, undercut state and local revenues and impose burdensome costs on taxpayers, businesses and the motoring public."
Carmela Castellano-Garcia, president, California Primary Care Association:
"It appears that in the name of fiscal responsibility, Governor Schwarzenegger is proposing to remedy the state's looming deficit at the expense of our most vulnerable communities, and the dedicated clinics that serve them. While we understand the governor's fiscal burden, community clinics believe that it is penny-wise and pound-foolish to make cuts to the most proven, cost-effective primary and preventative care system in the nation."
Brian Lewis, executive director, California Association of School Business Officials:
"The Proposition 98 funding formula contains self-correction calculations that lower the minimum guarantee in bad budget years. We oppose the governor's proposal to lower education so far below those automatic reductions. This is precisely the kind of budget maneuvering and evisceration of education funding the voters were trying to stop when they approved Proposition 98. Growth in education spending is not the cause of the state’s current budget problems."
Richard Frankenstein, president, California Medical Association:
"Slashing payments that go towards providing health care to the poor will only exacerbate the health care crisis in California. These cuts will force doctors out of this important program, will force hospitals and clinics to close their doors, and will force tens of thousands of patients to get their care in emergency rooms. It is inconsistent to talk about expanding health care coverage for low-income families at the same time we are cutting the budget of the state's health care program for low-income families. Cutting the budget for Medi-Cal will only exacerbate the problems the governor's health reform plan was designed to solve."
Dina Cervantes, chair, California State Student Association:
"It is no secret that undergraduate student fees have increased 70 percent since 2002 ... and we continue to face those increases despite the need for an educated and prosperous California. The rising cost of student fees has squeezed families that don't qualify for financial aid and cannot afford to pay for college. The students of California are disappointed that the governor has proposed to cut $312.9 million from the CSU and increase student fees once again."
Joshua Shaw, executive director, California Transit Association:
"Last year it was us that got pummeled. This year it’s the schools. What’s to prevent them from raiding us again next year? It’s time for the governor and the legislature to enact substantive, long-term systemic reforms in the way we craft a state spending plan. The trend of siphoning funds from one program to paper over the holes in the general fund has got to stop.”