As Crisis Looms, GOP Pushes Damaging Idea
With the state teetering on the brink of
bankruptcy, GOP legislators continue to push for a budget cap that
would destroy California's schools, universities, healthcare system,
and other vital public services. California once had such a cap, and
its effects on the state were so damaging that a bipartisan effort to
overturn it succeeded. Now, at the brink of immediate disaster, GOP
legislators want to lock California into a future of never-ending cuts to the human services
we all rely on. Read SEIU's recent release about its action to publicize the damage a budget cap would do. Read an op-ed on the budget cap by California Budget Project's Jean Ross.
Governor Makes a Big Mess Worse
Despite a recession that has the potential to get much worse, the Governor took two steps to radically worsen California's budgetary and economic problems in recent weeks. First, he proposed a budget with $17 billion in devastating, economy-wrecking cuts, and, second, he vetoed the only near-term fix that has been passed, the Democrats' majority-only plan. Read SEIU's statement on the Governor's proposed budget.
GOP Unveils Unrealistic, Reckless Budget
In an economic crisis unlike any seen in generations, GOP legislators
in California proposed deep cuts to
the programs and services that form the vital public underpinning of
our economy. With $10 billion in cuts to education and billions more in
cuts to health and human services, the GOP budget would would deepen
the downturn and delay recovery. Read SEIU's statement and an article in the Sacramento Bee summarizing the proposal.
SEIU Proposes a Budget to Rebuild the Middle Class
The California economy is in crisis. The people of California gave an overwhelming mandate for change in this election. Our state's future is at stake. Yet our Governor and legislators are offering more of the same. SEIU has had enough and has taken the unusual move of offering our own budget proposal, our "Budget to Rebuild the Middle Class." Without burdening working people, we can secure the revenue we need to save our schools, our healthcare, and vital services. Read our op-ed and our release.
Democrats Give Way on Cuts, While Republicans Don't Move on Taxes, So the Whole Package Fails
On November 25, in the last hours of the Special Session of the lame duck legislature, Democratic legislators continued their losing strategy of compromising before they get anything in return. Democrats voted for a devastating package of cuts -- over $8 billion -- while Republicans declined to consider any revenues. Because the two proposals were linked, the result was that nothing happened. This was something of a victory, considering what was on the table. Read California Disability Community Action Network's Marty Omoto on the budget vote in the California Progress Report, a good summary of the proposal in the Sacramento Bee, and SEIU's statement on the failure of the package.
'Truly Awful,' says Legislative Analyst
New Legislative Analyst Mac Taylor didn't mince any words in summarizing California's fiscal situation, calling it, "truly awful." The LAO also said the Governor's recent projection of an $11.2 billion deficit in this fiscal year and up to $27.8 billion through the end of Fiscal Year 2009-10 was "realistic." SEIU California State Council called the crisis a "test of leadership," and added, "There is no question that the right course for our people and our economy must include real, sustainable revenues to protect seniors, children, families, and people with disabilities."
Read the LAO's report on the Governor's proposal and a summary by the California Budget Project.
Budget Hole Now $10 Billion; Special Session Called
Senator Perata has pegged the potential hole in California's recently passed budget at $10 billion. Legislators will be called back immediately after the election for a lame-duck session. SEIU sent legislative leaders and the Governor this letter in advance of the recent "Big 6" meeting, making the case that in these times of economic distress, deeper cuts to the services people need now are the wrong way to go. Read the AP story on the meeting and SEIU's letter.
Legislators To Be Called Back on Budget
Word from the Governor's office on October 21, just two weeks before the election, is that California's budget situation is deteriorating so much that a special session will be called. Initial reports pegged the projected shortfall in this year's gimmicky budget at $3 billion, but others report additional fiscal icebergs that could bring the total to $5 billion. Read Capitol Notes.
Budget Falling Apart, Less Than a Month After Passage
It's been less than a month since the Legislature and the Governor agreed to a budget of gimmicks, borrowing, cuts, and damaging future constraints -- and it's already falling apart. The revenue projections aren't holding; the Governor is looking for a bailout loan from the federal government, and a federal judge says California may need to fork over $3.5 billion more for prison healthcare reform. All signs point to a swift return to the same ugly impasse our leaders couldn't break through earlier this year. Read more in the Los Angeles Times or the Sacramento Bee.
Credit Crunch Threatens "House of Cards" Budget
The nation's attention has been riveted by the financial crisis on Wall Street, which threatens to cause California's "house of cards" budget to collapse even sooner. As credit dries up, California is headed to Wall Street with hat in hand -- and the gimmicks and borrowing are being shown up for what they are: irresponsible, false "solutions." Even more troubling, California's plan for next year relies on still more borrowing against the lottery's future earnings, credit that Wall Street may not be able to extend. Read more in the Sacramento Bee.
Governor Makes a Bad Budget Worse
On September 23, the Governor signed the final budget and at the same time took an additional $500 million in line-item cuts away from vital services and help for the elderly, people with disabilities, and low-income families, making an already bad budget that much worse. "Not once did he propose that oil companies or his wealthy friends pay their fair share," noted Courtni Pugh, SEIU California State Council Executive Director. Read SEIU's full statement and the California Budget Project's summary of the final budget.