Capitol Weekly takes a look at how we got into the budget mess we're in -- and challenges some of the key myths and assumptions
in state budget reporting.
"Looking at the numbers, one might surmise that
California is not in much of a crisis at all. In fact,
new revenue estimates released by the Department of
Finance this week place the state’s general fund revenues at $85.9
billion – nearly $4 billion higher than they were just five years ago.
"Even with the depleted funds caused by plunging home
prices and a global economic slowdown, Gov. Schwarzenegger’s budget is still larger than his first budget in the
2004-05 budget year.
"But in that first budget year, state spending was at
$79.8 billion. Over the next two years, state spending jumped
by more than 21 percent, to more than $101.4 billion in the 2006-07 budget year.
In the 2004-05 budget year, spending on K-12 schools was $30.3 billion.
In 2009, it was $39.4 billion. But during that same period, K-12
enrollment stayed flat. In 2003-04, there were 6.3 million students in
public schools. In 2007-08, there were 6.28 million students, according
to stats from the state
Department of Education.
Other pieces of the budget have also skyrocketed since
Schwarzenegger took office.Health and Human services
spending has jumped dramatically
during the Schwarzenegger years. In 2004, the state spent $24.6 billion
on health programs. By 2009, that number jumped to $29.3 billion.
Most of that $4.7 billion increase has been in Medi-Cal. In
2004-05, the state spent $11.6 billion on Medi-Cal programs. In
2008-09, that spending was estimated to be more than $14.4 billion.
Capitol sources often point to increased use of Medi-Cal services as a major reason for increased state
spending. “Caseload growth” is cited time and again in budget analyses of the
state’s health care spending. But comparing the 2004 numbers with the current year, that growth
in Medi-Cal is hard to see. The 2004 administration analysis of the
health care budget
found that “more than 6.8 million” Californians used Medi-Cal services
– about the same number as the LAO estimates will use
Medi-Cal in the current budget year."
Meanwhile, opposition is mounting to the govenror's proposed cuts.
"The poor, the sick and the people who help them survive
paraded into
the state Capitol to plead with lawmakers Wednesday to spare the
programs Gov. Arnold Schwarzenegger has said must be
slashed to tame
California's $24.3-billion budget deficit," the LAT's Eric Bailey and Alexandra Zavis report.
"The governor, who was appearing at an event in Los
Angeles,
lamented that many of the most severe cuts might have
been avoided if
voters had approved a slate of ballot measures in the
May 19 special
election. That would have pumped nearly $6 billion into state coffers.
"I
think that the people have spoken now. . . . They don't want to raise
taxes," Schwarzenegger said. "That's why they voted no. . . . So we are
jammed into a corner and we have to now act fiscally
responsible."
The Merc's Karen de Sa looks at the govenror's proposal to cut CalWORKS. "
The
governor's proposal would make California the only state in
the nation
to reject Temporary Assistance to Needy Families block
grants, the
federal program that allows states to draw funds as
long as they impose
strict time limits and work requirements on recipients.
Rejecting
the $3.7 billion federal grant would save the state its matching
portion of $1.8 billion. But it also would result in the loss of $600
million in federal stimulus funds — money economists and poverty
watchers say is desperately needed to invigorate a
moribund economy.
"As of late Wednesday
afternoon, Schwarzenegger's proposal to eliminate CalWORKs appeared to
be, if not dead on arrival in the Democrat-controlled Legislature, then on life support. Legislators
from both parties signaled they would oppose a wholesale
elimination of
programs serving California's neediest, including CalWORKs and the
Healthy Families insurance program for the children
of the working poor."
Meanwhile, local governments have rallies with a new
Web site, saveyourcity.net, to try to stop the state from borrowing $2 billion from local government coffers. The CC Times' Steve Harmon reports,
"At a day of rallies at the
Capitol by a number of groups protesting cuts proposed
by
Schwarzenegger, county officials from across the state insisted that
raiding county coffers will have a crippling effect
on their ability to
deliver services .
"The state is abdicating its role to provide
safety-net services by its proposals to eliminate welfare
and health
insurance for children," said John Gioia, a Contra Costa County
supervisor. "Low-income families will turn to counties for help just
as
we're struggling with cuts, decreases in our own revenues
and delayed
payments."
CW's John Howard takes a look at the likelihood, and the mechanics, of a constitutional
convention.
"Under current law, the constitutional convention is
a two-step dance: Voters decide whether they want one, then the Legislature
approves enabling legislation that sets it up. Constitutional
conventions are a rarity in California. The first was
during the fall of 1849 at Monterey, when delegates wrote the state constitution
and created the structure of state government. A year
later, California became the 31st state.
"The most visible of the efforts for a third constitutional
is being mounted by the Bay Area Council, a San Francisco-based business coalition.
“For 60 years, our organization has partnered with Sacramento
to get things done. But now Sacramento is no longer
a partner. It’s a stumbling block, it’s a place where ideas go to die,”
said Council spokesman John Grubb. “Water crisis, prison crisis, health
care crisis, transportation
crisis – everywhere you look find a crisis and the common thread
is state government.”
"Fourteeen states have automatic constitutional convention
referenda in which voters periodically decide whether
or not a constitutional convention should be called.
"The Council wants to place two propositions before
voters simultaneously in November 2010."
Speaking of ballot-box battles, the Bee's Steve Weigand looks at the future of the gay marriage fight.
"With the ink barely dry on the California Supreme Court's
decision upholding a ban on same-sex marriages, proponents are already
preparing new political and legal efforts to overturn
the ban.
But at least some pollsters and legal experts think
those efforts may be too soon to have a good chance
to succeed. "I think the pro-side would have a significant challenge in 2010," said Mark DiCamillo, director of the Field Poll. "I think it would be less of a challenge in 2012."
"Alarmed that University of California regents have
raised executive
salaries while boosting student fees, a group of state
lawmakers
Wednesday proposed stripping the UC system of its historic autonomy and
giving legislators additional control," the LAT's PAtrick McGreevy reports.
"A constitutional amendment introduced by Sens. Leland Yee (D-San
Francisco) and Gloria Romero (D-Los Angeles) and three others would
give legislators the ability to set policy for the
university,
including limits on pay raises. To take effect, the measure must be
approved by two-thirds of the Legislature and then submitted to voters
as a statewide ballot measure.
And, in case you were wondering,
The attorney for former California Senate leader Don Perata said today that federal prosecutors
in Sacramento have decided against filing criminal charges against his
client, clearing the way for Perata's campaign for Oakland mayor next
year.
"Perata attorney George L. O'Connell told The
Associated Press that he received a letter from federal
prosecutors in
Sacramento saying they would not press charges.
"It's good news
for us that justice has been done," O'Connell said. "To me, that is a
plain indication that they have reached the same conclusion
that we
have been urging for five years, that Senator Perata
did nothing wrong
and this is not a case that should be prosecuted."
And finally, note to self: Don't mess with Lian Jiansheng . "A Chinese man was pushed off a bridge by an angry passer-by after
his threat to commit suicide held up traffic for five
hours, Chinese
media reported on Saturday.
"Retired soldier Lian Jiansheng, 66, broke through a police cordon and
reached out to shake the hand of would-be jumper Chen Fuchao before
shoving him off the bridge.
"I pushed him off because jumpers like Chen are very
selfish. Their
action violates a lot of public interests," Lai was quoted as saying by
the China Daily newspaper.
