Policy Pick: State Budget UpdateJune 15, 2009 |
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 Gov. Arnold Schwarzenegger released two versions of his May revised budget on May 15. The versions identified what would happen to safety net programs if each proposition on the May 19 ballot passed or if they failed. Both budgets had significant cuts to children's health, education and human service programs but specific details were unclear. Following the defeat of Propositions 1A-1E, the Department of Finance released further details of Schwarzenegger's revised budget plan. In order to plug our state's $24.3 billion dollar shortfall, he announced eliminating programs like CalWorks and Healthy Families. Cuts to Medi-CAL, state pre-school, childcare, and regional centers were put on the table as well. In fact, any state general fund program not federally mandated was identified for cuts or elimination. Last Tuesday, Senate Pro-Tem Darryl Steinberg responded to the Governor's proposal by announcing a plan to resolve our state's budget and cash flow crisis. Although, there are no specific, written details on this plan, Steinberg said Democrats want to use $3.5 to $4 billion dollars of California's $4.5 billion dollar reserve to pay for health and welfare programs, including Healthy Families and CalWorks. Deep cuts still remain in these programs as well as in public education and health and human services. Uncertainty over what state general fund programs will be cut or eliminated is causing great anxiety for millions of economically-disadvantaged families around California. First 5 LA has been reaching out to state and local elected officials to advocate for a fair solution that does not disproportionally impact those in greatest need. First 5 LA is working to be a part of the local budget solution. We will continue to partner with stakeholders and children's advocates to recommend ideas, such as raising additional revenue that help to resolve our state budget crisis. |
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