GAG ME PHOTOGRAPH OF ARNOLD THE ULTIMATE PIG POLITICIAN IN A MEN'S WAREHOUSE GRAY FLANNEL SUIT...Wayne Dennis Kurtz.

http://web.mac.com/videopalitalia/iWeb/Site/Photos.html

NOW IS THE TIME FOR ALL GOOD PEOPLE TO COME TO THE AID OF THEIR COUNTRY!

Rich Pedroncelli / Associated Press

Schwarzenegger discusses the $85-billion revised state budget before signing it at the Capitol on Tuesday.

The governor reduces funding to programs for children's healthcare, the elderly, and AIDS treatment and prevention. Angry Democratic leaders challenge his use of the veto in this situation.

By Michael Rothfeld and Shane Goldmacher

10:59 PM PDT, July 28, 2009

Reporting from Sacramento -- Gov. Arnold Schwarzenegger on Tuesday signed a budget plan sent to him by lawmakers to close the state's monumental deficit, using his veto pen to impose nearly $500 million in additional cuts.

The new reductions will affect child welfare and children's healthcare, the elderly, state parks and AIDS treatment and prevention, going beyond the dramatic cuts that were part of the deal Schwarzenegger negotiated with legislative leaders.

* Line-item vetoes

Line-item vetoes

* Full coverage: State budget crisis

Full coverage: State budget crisis

Budget cuts

Democratic leaders in the Assembly and Senate reacted angrily to his use of the line-item veto, disputing the Republican governor's authority to wield that power in this situation and portraying him as callous.

Schwarzenegger's aides said the cuts were proper, and the governor said they were necessary.

"This has been a very tough budget, probably the toughest since I have been in office here in Sacramento," Schwarzenegger said. "This budget is kind of like the good, the bad and the ugly."

The good, the governor said, is that the plan does not raise taxes and includes changes he says will make government more efficient, such as reorganizing and abolishing some boards and commissions.

The bad are the deep cuts to state programs that will touch millions of Californians, particularly its most vulnerable citizens, he said.

The ugly, Schwarzenegger added, are the new reductions he made because lawmakers left town after failing to fully close the state's deficit.

The Assembly on Friday capped a 20-hour session by rejecting provisions worth $1.1 billion that had been agreed to by the governor and legislative leaders.

The extra cuts the governor made Tuesday -- $489 million -- took nearly $80 million that pays for workers who help abused and neglected children; $50 million from Healthy Families, which provides healthcare to children in low-income families; $50 million from services for developmentally delayed children under age 3; $16 million from domestic-violence programs; and $6.3 million from services for the elderly. Among other reductions was $6.2 million more from parks, which could result in the closure of 100, rather than 50, of California's 279 state parks.

In addition, Schwarzenegger effectively gutted a program that provides local governments with funding to encourage property owners to preserve open space and to use land for agriculture.

Ted Lempert, president of Children Now, an advocacy group, called the cut to Healthy Families "particularly galling." He said a coalition, including his group, is spearheading a campaign to put a universal children's healthcare measure on the fall 2010 ballot.

"A struggling family puts their kids first," Lempert said. "What the governor and what the state has done is the opposite."

Assembly Speaker Karen Bass (D-Los Angeles) and Senate leader Darrell Steinberg (D-Sacramento), in questioning the legality of Schwarzenegger's moves, suggested that the governor's veto power can be used only on original appropriations. The new spending plan is a revision of a budget Schwarzenegger and lawmakers ratified in February.

Both leaders said they would attempt to restore the cuts when they return from recess, in mid-August, and Bass said she would seek an opinion from the Legislature's legal office.

In a long and harsh statement to the media, Bass called the governor "so eager to tear down the safety net that he appears willing to break the law to do it." She faulted Schwarzenegger for rejecting taxes that Democrats proposed on "big oil and big tobacco" and instead attacking "the sick, the young, the elderly and battered women."

In response, Schwarzenegger's aides said Bass and the Assembly had forced his hand.

"The governor understands how difficult these cuts are," said his spokesman, Aaron McLear. "But because the speaker sent him an unbalanced budget, he had no choice but to make these cuts."

Assembly lawmakers turned down a plan to seize $1 billion in gas tax money that belongs to local governments and rejected a new offshore oil drilling project that could have produced $100 million in royalties.

The Senate approved the entire budget deal, including those measures, early Friday morning.

By killing the two proposals, lawmakers wiped out a reserve fund the governor has insisted upon to cushion future shortfalls. His aides said the cuts announced Tuesday would allow the state to put aside $500 million.

Even as he signed the plan, Schwarzenegger warned that the state's troubles were not over. Finance officials are already predicting future deficits, and the governor said he was ready, "if our revenues drop further, to make the necessary cuts and live within our means."

Overall, the new budget is expected to fundamentally alter life for many Californians, with reductions to K-12 education, state colleges and universities, healthcare and public assistance for the elderly and the poor.

It appropriates billions of dollars from local governments, which could force cities and counties to further reduce their own spending on roads, law enforcement and other services.

The package was approved to address a deficit that administration officials previously projected at $26.3 billion. Schwarzenegger's aides now say that, although the budget plan contains $24 billion in solutions, it will close the entire shortfall because of changing revenue forecasts, a recalibration of education funding formulas and a decision to reduce the reserve fund.

The plan's cuts, accounting maneuvers and other measures should soon enable California to resume paying all of its bills again. From July 2 until the end of the day Monday, the state had issued 209,219 IOUs worth $1.09 billion, according to Garin Casaleggio of the state controller's office.

The state's credit rating has declined to nearly junk status after two months during which elected officials could not agree on how to resolve the crisis.

michael.rothfeld@latimes.com

shane.goldmacher @latimes.com

LEZLIE STERLING / lsterling@sacbee.com

Gov. Arnold Schwarzenegger wants a "full budget solution" on his desk by Tuesday.

Wow, another threat by the impotent "leader". Tell people in fire torn counties that youll cut firemen if your ballot doesnt pass, release criminals, cut pay, cut education.... I commend you Governor, very good job of "leading", if this was Nazi Germany idiot. Keep taking from the peoples backs to make up for your incompetence, your days with any decision making power are numbered and few. We will outlast your plague.

-- IanP

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Governor threatens third furlough day for state workers

By Kevin Yamamura and Steve Wiegand
kyamamura@sacbee.com

Published: Saturday, Jun. 27, 2009 - 12:00 am | Page 1A

Gov. Arnold Schwarzenegger plans to furloughstate workers an additional day each month starting in July if lawmakers do not send him an immediate solution for the entire $24 billionbudget deficit, he said Friday.

Schwarzenegger's move would force at least 215,000 state workers to take three unpaid days of leave each month, the equivalent of a 14 percent pay cut in all. A third furlough day would strike another economic blow to theSacramento region, where more than 80,000 area residents work for the state.

The Republican governor framed the additional furlough day as an effort to preserve cash as the state faces the prospect of issuing IOUs starting Thursday to vendors and low-income disabled and elderly residents.

"It's clear that if the Legislature does not send a full budget solution to my desk by June 30,California will face an extreme cash-flow problem that will threaten our ability to pay for vital services," Schwarzenegger said in a statement. "I cannot force the Legislature to act, so I must do what is in my power as governor to conserve cash so that the state can continue to operate."

The state would save about $61 million in cash in July alone with an additional furlough day – and $184 million with all three days of unpaid leave, according to the Department of Finance.

But Hallye Jordan, spokeswoman for Democratic state Controller John Chiang, said the cash shortage for July is currently pegged at $2.78 billion, and that the savings from one day's furlough would not provide enough savings to avoid having to issue IOUs in July.

State employees would schedule the third furlough day, like the other two, on their own, saidSchwarzenegger spokesman Aaron McLear.

The Legislature and the state judiciary are exempt from the governor's furlough plan because they are separate branches of state government. An estimated 15,000 employees who work for constitutional officers, such as Chiang or Attorney General Jerry Brown, also have avoided furloughs because the question of whether Schwarzenegger can compel them to do so is tied up in court.

In downtown Sacramento, state workers greeted news of a third potential furlough day with a mix of anger and resignation late Friday afternoon.

Some said they'd have to scale back or cancel summer vacations and cut back on food, entertainment and just about all big expenditures that they make.

Mark Robinson, a civil engineer at the state Department of Transportation, said the threat of a third furlough day was not unexpected but still hard to accept.

"It will seriously hurt if it goes through," said Robinson, a Davis resident, interviewed at a downtown bus stop.

"My wife's a teacher, and she was just notified that she's going to get a pay cut of about 5 percent. … I'm wondering if I will be able to feed my family on this sort of arrangement," added Robinson, the father of two middle schoolers.

Schwarzenegger and Senate Republicans are in a standoff with the State Assembly and SenateDemocrats over whether to approve $5 billion in solutions now that could delay the need for IOUs.

Legislative Democrats and Assembly Republicans, perhaps recognizing that the two parties are unlikely to resolve their overall differences by Tuesday, approved the $5 billion package this week as a stopgap solution. But the Senate GOP blocked the plan, with backing from Schwarzenegger.

The governor and Senate Republicans generally agree with the guts of the $5 billion proposal, but they say they oppose it because it is a piecemeal approach that further delays the overall budget solution.

The governor demanded Friday that lawmakers bridge the entire $24 billion budget gap by Tuesday – the end of the fiscal year – in order to avoid IOUs and, now, a third furlough day.

"It is irresponsible for the Legislature not to deal with the whole $24 billion," he said. " … The controller has made it very clear that we are running out of cash and therefore we cannot make any payments. This would be unfortunate. We should do everything we can to solve the budget. We have five days now."

Jim Evans, a spokesman for Senate President Pro Tem Darrell Steinberg, criticized the furlough move.

"While we all understand that everyone in government must sacrifice during this time, the governor's proposal is an unfair burden on those who contribute so much to the betterment of our state," Evans said.

Yvonne Walker, president of Service Employees International Union 1000, which represents 95,000 state workers, said another furlough day added to the two state workers already face would equate to the loss of 36 days of pay in a year.

"The governor needs to stop issuing threats and he needs to govern," Walker said. "Using his employees as pawns is not the way to go. There are other suggestions we have made where he can capture cash."

Lawmakers moved no closer Friday to solving the state deficit and adjourned until Sunday.Schwarzenegger is scheduled to meet today with Democratic leaders.

In the Assembly, Democratic leaders went through the motions of voting again on a bill containing $11.4 billion in spending cuts that had already been rejected Wednesday by Republicans who wanted deeper cuts. The bill was again shot down.

The state Senate on Friday rejected a Democratic proposal to finance the California park system through a $15-per-vehicle registration fee, largely due to Republican opposition.

The GOP senators also flexed their ability to block any bill requiring a two-thirds approval by rejecting measures that would have accelerated income tax collections and increased enforcement of other tax laws; and would have imposed a surcharge on property insurance policies to fund state emergency response programs.

Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548. Andrew McIntosh of The Bee's Capitol Bureau contributed to this report.

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Comments: 30 Showing:

PuraVida wrote on 06/27/2009 05:32:05 AM:
Did anyone notice any difference (except lighter traffic on the freeways) when state employees got two days of furloughs?

Why don't they just work 4 days a week and save the state another 10%.

Most of them run side business from their cubicles so they should be ok financially.
Recommend (3)
weakestlink28 wrote on 06/27/2009 04:53:58 AM:
There is no logic to girly mans thinking. I keep thinking about the 4-6 billion dollars that is spent to HELP illegals (they pay no taxes). I don't get it!!! Kids, the elderly and the physically/mentally challenged are going to suffer due to possible cuts. WHAT IS WRONG WITH THIS PICTURE!!!
Recommend (2)
weakestlink28 wrote on 06/27/2009 04:41:03 AM:
I say that all state employees bring their campers, tents, rv's to their work site parking lot (if you have one) and camp during the week (since gas is going up, won't be able to drive from home,if you live far, to work due to not being able to afford gas) and then go home on the weekends.... And if the higher ups don't like it, then i guess we don't come to work but once a week. :-)
Recommend (1)
captnsac1 wrote on 06/27/2009 04:37:06 AM:
I love Arnold and I think thathe would make a wonderful President. I think that we all should pay attention to the wonderful job he is doing TO California! Gosh Arnie, give us and the other people some lube brutha! It hurts......
Recommend (1)
weakestlink28 wrote on 06/27/2009 04:32:12 AM:
Well, girly man is going to do it. Save the illegals (at a 4 to 6 billion cost) and lets get rid of the state workers (law biding citizens who pay their taxes) one pay cut at a time. Yep. Girly man has really f'd up. Foreclosures are going to go up now, less revenue due to lesser pay and lesser taxes generated. Who ever his adviser is (i think it is pete wilson :-) )really needs to go back to school and take economics 101. Punish the state workers instead of punishing those that break the law. To think girly man wants to be president...LOL!!!!! He would tank this country like he has California. Glad i didn't vote for him.
Recommend (3)
ldandpepper wrote on 06/27/2009 04:25:12 AM:
Our Agency Secretary sent out an e-mail at 4:13 p.m. on Friday, saying this is a done deal.
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sac41088 wrote on 06/27/2009 04:14:01 AM:
At 14% cut in pay...many state workers with over 25 years of service and over 55 years of age will be thinking about retirement. This is what the Gov. wants...get the old, slow and establish "leadership" out of state government. Why would one work at a cash loss of $500 to $700 a month...you would retire and might gain $200 cash flow because of less taxes, less gas and no more parking cost. GO FILL OUT YOUR RETIREMENT PAPERS ON MONDAY!!!!!!!!
Recommend (5)
TheGrid wrote on 06/27/2009 04:05:20 AM:
Ladies & Gentleman:

Welcome to the New World Order AKA Socialism in California.

Instead of laying off the newer employees, we all need to suffer! Right?

Of course the welfare moms, free lunch programs & entitlements for illegals will not be touched. That would not be politically correct.

I like the fact of working 10+ years for the state & having it slowly taken away from me on a daily basis. Look for a fourth furlough day & health care cuts to workers.

If all 230,000 State Workers were Card Carrying Union Members none of this would be happening.

At the first mention of a paycut, we would have all walked off the job.

You can't be fired for missing one day of work.

You have to miss 4 days of work (without calling in)before anything can be done to you.

Who cares if it's illegal, time for the entire State workforce to go on STRIKE

Otherwise there will be nothing left....

Have a great weekend!

The Grid
Recommend (4)