State of the State: Governor Warns of Cuts, Calls For Budget Reform
William Foster, Governor's Office
Governor Schwarzenegger warned of difficult cuts in his fifth State of the State Address last night. He also blamed California’s current fiscal woes on the budget formula – and asked lawmakers to change that.
Tuesday, January 8, 2008
In a more subdued speech than usual, Schwarzenegger delivered the tough news about the state’s 14 billion dollar budget hole:
“We now have no way out except to face our budget demons.”
He even referred to Franklin Roosevelt’s tactics to keep the economy going during the Depression – and said lawmakers now have to be similarly daring. The Governor is proposing a constitutional amendment that would call for automatic mid-year cuts if there’s a deficit. It would also set a spending cap; forcing the state to save money in flush years. He says that would increase stability:
“One year up and the next year down. We cannot continue to put people through the binge and purge of our budget process. It is not fair. It is not reasonable. It is not in the best interest of anyone.”
The Governor also promised to continue his push for health care reform, and increase the state’s water supply.