Governor Considering Elimination Of Welfare Programs

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(Sacramento, CA)
Thursday, May 21, 2009

The Schwarzenegger administration is looking at cutting several programs – including Healthy Families, which provides health insurance for low-income kids, Cal Works, which provides welfare-to-work assistance, and Cal Grants, which help college students pay for school.  He’s also considering deeper cuts to parks, courts, corrections and higher education.  A few hours before the announcement the Governor hinted at the issue: 
“We have to make drastic decisions.  We have to think big and really outside the box in order to really solve this problem.”

Why the new cuts? The Governor’s May revised budget included about six billion dollars in expensive borrowing from Wall Street.  But now the Governor‘s abandoned that plan.  His office says he’ll call for more cuts instead.  Schwarzenegger’s decision came just as the state’s non-partisan Legislative Analyst released a report critical of the borrowing. The Governor is expected to release a revised proposal next week