Points on Arnold’s budget proposal

Governor Budget Plan Summary
Compiled by Office Intern Duncan Tsai

• Governor Schwarzenegger aims to close the $20 billion deficit, mostly through spending cuts. Governor himself called them “draconian.”

• Spending cuts are estimated to be around $8.5 billion. “Under the cuts, more than 200,000 children will lose eligibility for health insurance. Prisoner health care, services for immigrants and in-home care, schools, and state aid to local public transportation would see funding slashed.”

• Budget also heavily relies on projected federal aid of $6.9 billion. If federal aid does not reach that amount then there will be an additional 4.6 billion in cuts, mostly from the areas listed above, essentially shredding the safety net of low income families and individuals, especially those who are unemployed.

• Governor is serious in looking toward Capitol Hill for funds, holding them accountable for the unequal distribution of federal dollars in areas like Medicare and federal mandates such as “health care, foster care, special education, and the imprisonment of illegal immigrants.”

• Governor does not want to raise taxes, instead wants to create “real reforms” in taxing and spending.

• Governor is choosing not to cut financing for public universities through proposal of constitutional amendment, with no less than 10% toward public universities, no more than 7% to prisons. There will most likely be heavy opposition to this plan.

• Plans to privatize prisons, but will have to fight the powerful prison guard union.

• K-14 not spared, will loose 2.4 billion in funding.

• He is also proposing to end furloughs for state workers, instead having 5% pay cuts in their place, with an additional 5% toward retirement costs.

• Governor is proposing 4.8% surcharge on property insurance, both commercial and residential.

• We might also have to start paying for entrance to state parks.

• Plans for drilling oil off Santa Barbara.


Schwarzenegger submits “draconian” California budget
Mary Milliken
Jan 8 2010

California Deficit: Arnold Has to Make ‘Sophie’s Choice’
Kevin o’ Leary
Jan 09 2010

Plan to Close California’s Budget Deficit
Ny Times
Jennifer Steinhauer
Jan 8 2010

Even with austere budget plan, California counts on federal funds
Washington Post
By Karl Vick and David Cho
Sunday, January 10, 2010


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