CDCAN DISABILITY RIGHTS NEWS
California Disability Community Action Network
Advocacy Without Borders: News Impacting People With Disabilities,
Mental Health Needs, Seniors
Goes out to over 45,000 people, organizations, policymakers across
California
Marty Omoto Director/Organizer -
martyomoto@rcip.com website:
www.cdcan.us
Report #003-2008
January 8, 2008 Tuesday evening
Governor's State of the
State
* Will Propose
Constitutional Initiative to Control Spending
* "Budget Stablization Act"
Calls for Automatic Spending Cuts
* Major Possible Impact To
People With Disabilities & Seniors
* Says Budget Will Call
For "Across the Board Spending Cuts"
* No Tax Increases Will Be
Proposed For Budget Shortfall
* No Details Mentioned
During 30 Minute Speech
SACRAMENTO (CDCAN) - Governor Arnold
Schwarzenegger, mixing optimism to solve the State's problems with grim news,
told the State Legislature in his "State of State" address today that the State
budget he will release on Thursday (January 10) will be "difficult" and contain
proposals to cut spending "across the board" but no tax increases, including a
controversial constitutional amendment that would, during bad budget years, call
for automatic spending cuts.
The speech, which lasted just under 30 minutes,
contained no details on any of his proposals, though some specifics did emerge
from officials out of the Governor's office.
Proposing major across the board cuts is one of
"worst things" about being Governor, Schwarzenegger told the special joint
session of the State Legislature, but said that "Fiscal responsiblity - like
compassion - is a virtue because it allows those programs in the first place".
Any proposal by the Governor would require approval
of the State Legislature, unless the Governor intends to push a consitutional
amendment by-passing the Legislature and placing it on the ballot through
signatures.
California Faces $14
Billion Budget Shortfall
California is facing an enormous budget shortfall
that the Governor's Department of Finance estimates will be over $14 billion by
the end of the 2008-2009 State Budget year that begins July 1, 2008 and ends on
June 30, 2009.
The Governor announced earlier in December that he
intends to declare a "fiscal emergency" under the State Constitution and will
submit, as part of his proposed State Budget, proposals to cut spending and make
other changes to the current State budget, in addition to cuts and changes for
the 2008-2009 State Budget.
Declaring a "fiscal emergency" requires the State
Legislature to meet in special session and to respond with a bill or bills
addressing the fiscal emergency within 45 days.
Advocates Worried About
Cuts To Critical Services
Disability, mental health, senior, low income
families and other advocates across the State are worried about likely cuts in
spending to critical programs and services, including CalWORKS, SSI/SSP (cash
grants to the lowest income people with disabilities, the Blind and seniors),
regional center funded community-based services, In-Home Supportive Services and
other in-home supports for seniors, people with disabilities and others, mental
health services and supports, serivces for seniors including adult day health
centers, and Medi-Cal and other health related services.
Advocates also are worried about cuts in spending
impacting affordable and accessible housing, public transportation, special and
adult education, employment services for persons with disabilities and others.
Governor Says California
Budget Needs "More Stability"
"In any number of areas, we've tackled politically
risky things that no one in the past wanted to touch" the Governor said, "To me,
this is progress. And now, we must make progress on another problem that's been
put off for many years."
"The problem is that, while revenues are flat,
automatic formulas are increasing spending by 7.3% Even a booming economy can't
meet that kind of increase. So the system itself is the problem. We need more
stability." Schwarzenegger said.
Saying that after years of booming revenues, that
the "wolf is back" in terms of State spending outstipping revenues, and that "we
need stability"
The Governor said that "to address next year's $14
billion deficit, in two days I will submit a budget that is difficult. It does
not raise taxes. It cuts the increase in spending. And it cuts that spending
across the board.
We cannot continue to put people through the binge and purge of our budget
process. It is not fair. It is not reasonable. It is not in the best interests
of anyone. So I am again proposing a constitutional amendment so that our
spending has some relationship to our revenues" the Governor said in his
prepared text that will be delivered to a special joint session of the
Legislature.
Legislative Democratic
Leaders Say Other Options Need to Considered
While the Governor called for Democrats and
Republicans to work together in the Legislature to solve the budget crisis,
Assembly Speaker Fabian Nunez (Democrat - Los Angles) and Senate President Pro
Tem Don Perata (Democrat - Oakland) however said that the Governor needed to
also look at other options to bridge the budget shortfall other than just
spending cuts. Democrats conceded that some level of cuts would be needed
- but that spending reductions needed to be prioritized rather than a across the
board cuts. [See separate CDCAN Report for details on response by
Democratic and Republican legislative leaders]
The speech, given at 3:30 PM this afternoon, was
held earlier than its usual 5 PM starting time to avoid the media coverage that
will begin at that time covering the New Hampshire presidential primary
Governor Will Propose
Constitutional Amendment to Control Spending
The Governor said that "we don't have a revenue
problem, we have a spending problem" and announced that he intends to propose a
ballot initiative, called the "Budget Stablization Act" that Schwarzenegger
says would be similar to a law passed in Arkansas, to amend the California
Constitution to tie spending to revenues. The amendment would contain a
trigger that would cap and cut spending on programs and services when projected
revenues fell - though no details were mentioned.
"The first year I was here, I tried to get the
legislature to pass a constitutional amendment to limit spending-but I failed.
Then, in 2005, I tried to convince the voters to pass a constitutional amendment
to control the budget-but that failed, too." the Governor said, "So, for several
years, we took actions that balanced the budget as long as the economy was
booming. For several years, we kept the budget wolf from the door, but the wolf
is back. "
Governor
said that "It used to be that Sacramento plugged deficits by grabbing money
everywhere it could-pension funds, local governments, bonds, gas taxes meant for
transportation. But we tightened the noose by taking away those options. We
passed Proposition 1A, Proposition 58 and Proposition 42. We now have no
way out, except to face our budget demons".
Though no details were released, the proposed
amendment would look at a 10 year average of State revenues, and any revenues
above that average would go into a "rainy day fund", and anything below that
average would be used to help fill the shortfall.
The proposed amendment would require the Governor's
Department of Finance director to review the State budget as passed, three times
a year. If revenues fall below spending, a trigger would automatically cut
spending between 2% and 5%, depending on the size of the shortfall.
Constitutional Amendment
Could Have Major Impact to Landmark Lanterman Act
Though there are no details, tt is not certain how
such an amendment would impact specific programs and services critical to
children and adults with disabilities, mental health needs and seniors - though
at first glance it would seem to have the impact of at least possibly partially
undoing or suspending the landmark Lanterman Developmental Disabilities Services
Act. That act, considered the civil rights act for children and adults
with developmental disabilities and the only such law in the country, requires
that the State provide needed services and supports.
Governor Schwarzenegger in the fall of 2003
proposed suspending the Lanterman Act which he reversed by December 2003 after
enormous wide spread protests. Governor Gray Davis previously proposed
cuts and reductions that many advocates believed would have had the impact of
suspending the Lanterman Act, though others disagree.
Education Reforms Proposed
The Governor also spoke about the need for reforms
for public education in his speech today - though not new spending increases for
those reforms, saying that"...everyone knows that to dramatically change our
education system we have to undertake reforms, and we have to fund those
reforms. In light of the current budget situation, this is not the year to talk
about money. I do believe, however, we still must undertake reforms right now in
the schools that need our help most. "
CDCAN Special Townhall
Telemeeting/Advocacy Conference Call January 11th
Note: CDCAN has scheduled for Friday, January 11,
from 1 to 2:15 PM, a special statewide Townhall Telemeeting/Advocacy Conference
call featuring advocates and others across the state to provide updates and
comments on the Governor's proposed budget for 2008-2009 and its impact on
children and adults with disabilities, mental health needs, seniors, people with
MS and other disorders, people with traumatic brain and other injuries, persons
who are blind, deaf, low income families, support workers and community
organizations that provide services and supports. An earlier
townhall telemeeting/advocacy conference call was held on December 18th and drew
hundreds of people.
CDCAN Advocacy Conference
Call is scheduled for:
January 11, 2008 (Friday)
from 1:00 PM to 2:15 PM
Toll Free Line:
1-800-608-4143 Note: there is NO passcode.
Subject: update on
Governor's budget released January 10th and impact to people with disabilities,
mental health needs, seniors, low income families, support workers, others.
Next Steps
Governor will submit for approval by the State
Legislature, his proposed State Budget for 2008-2009 on Thursday, January 10th,
sometime between 11:00 AM and 1 PM.
* The Governor will also officially declare a
"fiscal emergency" at that time through an executive order. That in turn
will trigger the State Constitutional amendment (passed as Proposition 58 by
voters in 2004) that has never been used before that puts the Governor's
proposals to cut spending and make other changes to the current State budget
(passed in August) on a fast-track, requiring the Legislature to respond by
sending a bill or bills to the Governor within 45 days that addresses the fiscal
emergency.
* It is not certain how exactly the process will
work since the constitutional provision has never been used before.
* Both the Assembly Budget Committee, chaired by
Assemblymember John Laird (Democrat - Santa Cruz) and the Senate Budget and
Fiscal Review Committee, chaired by Sen. Denise Ducheny (Democrat - San
Diego) are scheduled next week to hold hearings on the Governor's proposed
budget with review and report from the Governor's Department of Finance and also
the non-partisan Legislative Analyst Office.
* No action from either committee is expected
however at that time.
Please:
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www.cdcan.us
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