 With general elections over, state leaders have turned their attention once again to California's ongoing financial problems. Some experts estimate that California's budget deficit now stands at $6.1 billion in the current fiscal year, with another $19.4 billion in the fiscal year that begins July 1. The possible loss of another $2.7 billion in revenues from estate taxes could bump the deficit up to a whopping $28.1 billion. The last few weeks have seen a flurry of budget-related activities: - On Dec. 6, outgoing Gov. Arnold Schwarzenegger called for a special legislative session to deal with the state's ongoing budget issues. The governor forwarded to legislators a budget proposal that contained $9.9 billion in solutions, including deep cuts to Healthy Families, CalWORKs and child welfare services. After a two-hour meeting, lawmakers adjourned for the year without taking action on the governor's proposal. Legislative leaders said that they will instead work with Governor-elect Jerry Brown to solve the state's fiscal predicament.
- Assembly Speaker John Perez (D-Los Angeles) made good on his promise to thousands of low-income families when he introduced a bill to reinstate CalWORK's Stage 3 child care on the first day of the legislative session. Necessary funding to take the program through June would come from an earlier announced $6 million from the Assembly's General Fund, $58 million in federal funds, $60 million leftover from last year's child care funding and $110 million from the state's general fund. A similar bill, authored by Sen. Ellen Corbett (D-Fremont), was also introduced. It is unclear if Brown will sign the legislation when he assumes office next month.
- Brown hosted two budget forums in December to provide clarity on the nature of California's ongoing fiscal difficulties. Consistent throughout these discussions was Brown's assertion that the state is in a bind: A majority of Californians don't want cuts to vital programs such as education and health programs, but also don't want to raise taxes to support the programs. Brown mentioned during one forum that he would likely recommend realignment of a number of services to local counties. State leaders have fewer resources with which to fill the budget gap this year because federal stimulus funds are drying up and tax rates are scheduled to decrease.
The governor-elect also mentioned that he was trying to put the finishing touches on his budget proposal by Dec. 15. He hopes to win consensus from legislators by March. ‹‹ Back to this week's Monday Morning Report. |
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