Governor's 2 Budget Proposals: Bad and Worse

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(Sacramento, CA)
Thursday, May 14, 2009

Governor Schwarzenegger rolled out dual spending plans; one if the ballot measures pass next week at the polls and the other if they fail.  Either way, Schwarzenegger would make deep cuts to education and social services, borrow billions of dollars, lay off five-thousand state workers and sell off prime state properties like San Quentin state Prison:

 “We should be in no business to hold onto this real estate.  We should sell it off.  That’s why it’s important also to lay off state employees and to do all of the cuts that we need to show that we have the same kind of fiscal discipline that ordinary people have to have out there.”

State revenue has plummeted and California faces a 15 billion dollar deficit.  That would grow to 21 billion if voters reject the ballot measures.  In that case, the Governor says cuts to education will be deeper, he’ll borrow from local governments, and he’ll release thousands of illegal immigrant prisoners into federal custody.  The state’s legislative analyst says unless lawmakers act quickly, California could be out of cash by the summer.