MagicMtnDan
12-18-2003, 11:05 AM
Ya gotta like this guy for making the tough decisions and for taking action. His decisive moves are making the Democratic spenders in Sacramento heads spin around (wish they'd fall off).
SACRAMENTO, Calif. - California Gov. Arnold Schwarzenegger plans to declare a financial emergency Thursday, enabling him to bypass the Legislature to provide millions of dollars due cities and counties, administration sources said.
To make up for $4 billion lost when he cut the unpopular car tax, the governor will make a $40 million payment to local governments to keep them from closing facilities and laying off police officers and firefighters, aides said Wednesday, speaking on condition of anonymity.
Schwarzenegger will get that money and future payments by making $150 million in cuts that will fall heavily on public health and welfare programs, the sources said.
A statement from the governorÂ’s office late Wednesday said only that Schwarzenegger would have a news conference Thursday to discuss funding for local governments.
Local officials threaten lawsuits
Since Schwarzenegger cut the tax as his first official act as governor last month, local officials have said they are losing millions of dollars every day. Many have threatened to sue the state if something isnÂ’t done quickly to restore the funds.
Some Democratic leaders were not told of the new Republican governorÂ’s pending actions, but they cannot block the cuts, the sources said.
State Controller Steve Westly — who will be the one to issue the checks to local officials — said he was informed of the proposal and agrees with the governor’s decision.
“Our police officers and firefighters must not be held hostage,” Westly said. “This is an appropriate but temporary solution. The governor and the Legislature now have six months to cut waste and solve California’s fiscal crisis.”
An agreement reached in July that is part of this year’s budget gives the governor the authority to impose cuts of up to 5 percent on any line item in the budget to fund an “emergency deficiency.”
Money saved from those cuts will go to local governments to replace money lost when Schwarzenegger repealed the tripling of the car tax that was part of JulyÂ’s budget deal.
Proclamation calls for $2.6 billion in cuts
The emergency proclamation will call on lawmakers to make additional cuts of $2.6 billion to fully reimburse local government for all the money lost since the higher car taxes were repealed.
However, state officials expect the improving economy to provide as much as $2 billion in unanticipated revenue, in which case lawmakers would only be required to make cuts of about $500 million before a March 1 deadline.
The car tax was raised last summer as part of the budget solution crafted by former Gov. Gray Davis and the Legislature to bring in about $4 billion annually. But the hike proved a pivotal issue in the recall campaign and Schwarzenegger promised early on to cut the higher rate if elected — an action he took hours after being sworn in.
SACRAMENTO, Calif. - California Gov. Arnold Schwarzenegger plans to declare a financial emergency Thursday, enabling him to bypass the Legislature to provide millions of dollars due cities and counties, administration sources said.
To make up for $4 billion lost when he cut the unpopular car tax, the governor will make a $40 million payment to local governments to keep them from closing facilities and laying off police officers and firefighters, aides said Wednesday, speaking on condition of anonymity.
Schwarzenegger will get that money and future payments by making $150 million in cuts that will fall heavily on public health and welfare programs, the sources said.
A statement from the governorÂ’s office late Wednesday said only that Schwarzenegger would have a news conference Thursday to discuss funding for local governments.
Local officials threaten lawsuits
Since Schwarzenegger cut the tax as his first official act as governor last month, local officials have said they are losing millions of dollars every day. Many have threatened to sue the state if something isnÂ’t done quickly to restore the funds.
Some Democratic leaders were not told of the new Republican governorÂ’s pending actions, but they cannot block the cuts, the sources said.
State Controller Steve Westly — who will be the one to issue the checks to local officials — said he was informed of the proposal and agrees with the governor’s decision.
“Our police officers and firefighters must not be held hostage,” Westly said. “This is an appropriate but temporary solution. The governor and the Legislature now have six months to cut waste and solve California’s fiscal crisis.”
An agreement reached in July that is part of this year’s budget gives the governor the authority to impose cuts of up to 5 percent on any line item in the budget to fund an “emergency deficiency.”
Money saved from those cuts will go to local governments to replace money lost when Schwarzenegger repealed the tripling of the car tax that was part of JulyÂ’s budget deal.
Proclamation calls for $2.6 billion in cuts
The emergency proclamation will call on lawmakers to make additional cuts of $2.6 billion to fully reimburse local government for all the money lost since the higher car taxes were repealed.
However, state officials expect the improving economy to provide as much as $2 billion in unanticipated revenue, in which case lawmakers would only be required to make cuts of about $500 million before a March 1 deadline.
The car tax was raised last summer as part of the budget solution crafted by former Gov. Gray Davis and the Legislature to bring in about $4 billion annually. But the hike proved a pivotal issue in the recall campaign and Schwarzenegger promised early on to cut the higher rate if elected — an action he took hours after being sworn in.