Reply With QuoteSo the cutting begins and it is just the beginning. Gotta give it up for Arnold. Doing what has to be done!
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Money saved from those cuts will go to local governments to replace money lost when Schwarzenegger repealed the tripling of the car tax that was part of JulyÂ’s budget deal.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.
So the cutting begins and it is just the beginning. Gotta give it up for Arnold. Doing what has to be done!
The legislature is so full of BS. Good move on his part. He gave them a chance to cooperate, but they didn't want to play ball.
I found some interesting numbers in the Cal. budget.
Expenditures:
education $45 billion, 53%
welfare (HSS) $21 billion 28%
corrections $9.9 bil, 12.5%
the rest is small in comparison, courts, transportation, housing,
Goes to show you were the priorities are. (28% to welfare?)
I say cut that and it will help balance the budget without cutting fire & police.
The begining of the end of the welfare state I can only hope. It will be painful to alot of people(many of which are deadbeats anyways), but it has to be done. Good for Arnold, the state owes the cities the money for services, peoples jobs should not be lost.
How in the world could you survive on welfare in one of the highest cost of living states?
How much does welfare pay?
Sounds to me lake Arnold is doing exactly what we voted him into office to do... A good call in my book.
[QUOTE]Originally posted by MagicMtnDan
[B]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).
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.
I love it!! Go Arnold!!
Originally posted by Infomaniac
How in the world could you survive on welfare in one of the highest cost of living states?
How much does welfare pay? Thats a good question I don't really know cuz I work for a living, but they do. Hell all you need is 3 or 4 foster kids that pay 700-800 bucks a head a month, with your welfare and food stamps, no problem with the Escalade payment. There are alot of professional deadbeats in California, they are always in front of me in the grocery store line it seems. Fu%k the democrates and the deadbeats they serve!
You have to commend him on his actions. He has a big brass pair. The people of CA will love him.
But: His fellow politicians are already showing their intentions. They will end up stabbing him in the back to make him look bad. They can make his life much harder than the people can. They do not want to do the right thing and make the changes. Especially the ones that have played the game for quite a while.
I just hope for the people of CA that Arnold's staff has the savvy to advise him properly on the game playing. He is way out numbered.
If the mayors etc threaten to cut fire fighters and police and blame it on the governor. He should be able to fire them for incompetence. They need to cut the fat when funds are low.
Our mayor and city council in L.A. are such a joke that in most cases giving them money is just tossing out good money after bad....
Go Arnold.
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