Arnold and Gavin: Opposing “Share the Pain” Budgets

by Paul Hogarth via Beyond Chron

Tue, Jun 23, 2009 6:46AM

Tuesday, June 23, 2009 : San Francisco’s budget battle between the Mayor and Board of Supervisors bears a strange resemblance to what’s going on in Sacramento. Democrats in the state legislature have proposed a budget that “shares the pain” – which includes a tax on oil companies and other revenue measures to avoid the worst cuts in health and human services.

But Governor Schwarzenegger says he will oppose “any tax increase whatsoever.” At City Hall, the Board’s progressive majority is also pushing a budget that “shares the pain” by diverting funds away from Police and Fire – to avoid the worst cuts in health and human services. Newsom accuses them in the press of “playing with public safety.” Democrats in Sacramento are not likely to win their fight, because the budget needs a two-thirds vote to pass. The Board of Supervisors don’t have that problem, but the Mayor has threatened to veto the interim budget. If that happens and the City cannot pay its bills after July 1st, it will start looking more like Washington in 1995 – when House Speaker Newt Gingrich refused to cooperate with the Clinton White House, and the federal government shut down. Does Gavin really want to go that route?

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§California May Forfeit Stimulus Funds

by NAM (reposted)

Tue, Jun 23, 2009 6:49AM

Originally From New America Media

Monday, June 22, 2009 : SAN FRANCISCO, Calif.,-- Already burdened by a $24 billion budget deficit, California stands to lose billions more in federal stimulus dollars and matching funds if Gov. Arnold Schwarzeneggers proposed budget cuts go through.

The upshot is that youre undermining the recovery, said Mark Herald of the Western Center on Law and Poverty. The budget will lead to more layoffs and a steeper and longer economic slowdown. Its quite scary to think about what will happen to our economy if public spending and public employment actually contract at precisely the moment that we need the stimulus.

If you continue to cut programs it will be even harder for people get back on their feet.

The U.S. Department of Labor reported Friday that Californias unemployment rate had jumped to 11.5 percent.

Among the cuts Schwarzenegger is proposing in order to close the budget gap are shutting down the states welfare program (CalWorks) and eliminating MediCal health insurance for poor families and Healthy Families, which includes children of lower income families. More than a million poor Californians would lose cash assistance, 180,000 no would longer have publicly funded childcare, and 940,000 children would lose their health insurance.

Funds for each of these programs are matched dollar for dollar by the federal government. If Schwarzeneggers cuts go through, California will lose not only that money, but also part of its share of President Barack Obamas stimulus funds which are meant to supplement, not replace existing programs.

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