Some Budget Information Updates (Los Angeles: 2009, loan, wages)

[NewToCA]

A couple of interesting stories today:

Assembly Speaker Karen Bass said today she sees little chance of the Legislature approving more tax hikes to balance the state budget between now and the start of the new fiscal year July 1, no matter what happens to several budget-balancing propositions on the May 19 special election.

"California, frankly, is going to be in a world of hurt," Bass, D-Los Angeles, told reporters in a teleconference from Washington. "It's really going to be about devastating cuts."

Bass: Chances slim that budget will be balanced with more taxes - Latest News - sacbee.com


However, it appears part of the expenditure reductions previously negotiated has been reversed by the Obama Administration:

The Obama Administration has ruled that proposed cuts to the IHSS program violate the terms of the American Recovery and Reinvestment Act (ARRA). The ruling came after the Service Employees International Union (SEIU)...requested an opinion from Health and Human Services on whether California's proposed cuts violate the maintenance of effort clause of the ARRA.

Citing a $40 billion budget deficit, the California State Legislature voted as part of its budget to lower its contribution toward homecare worker wages by 20 percent. The cuts that would lower the State's contribution from $11.50 to $9.50 per hour are scheduled to go into effect on July 1, 2009. However, under the terms of ARRA, states are blocked from reducing funding for existing services.

Obama Administration Rules Against California's Proposed Wage Cuts to Homecare Workers

[BayAreaHillbilly]

Great another unfunded mandate from on high. Thomas Jefferson is rolling in his grave.

[EscapeCalifornia]

Keep in mind that to a politician, a "devastating cut" is reducing next year's proposed budget increase from 7% to 4%. Cut away!

[eagle7]

About 6 yrs ago i worked in the IHSS program. Those bastards forced me to pay union fees even though i didnt want to be in the union. They took out $20.00 month. Now its $30.00 mo if you work 16 hrs or more. They also cut my hrs every yr. Back then i was making $8.50 hr.

The state of ca is in a financial turmoil thanks to the horrid ca legislature. The unions own the republicans & democrats in the state legislature. The state legislature has doubled in size since gov.benedict arnold took office. The state workers pensions are out of control. We really do have girly girls in sacramento. My local assembly member paul cook is one of them.

[iluvcj]

Originally Posted by eagle7

About 6 yrs ago i worked in the IHSS program. Those bastards forced me to pay union fees even though i didnt want to be in the union. They took out $20.00 month. Now its $30.00 mo if you work 16 hrs or more. They also cut my hrs every yr. Back then i was making $8.50 hr.

The state of ca is in a financial turmoil thanks to the horrid ca legislature. The unions own the republicans & democrats in the state legislature. The state legislature has doubled in size since gov.benedict arnold took office. The state workers pensions are out of control. We really do have girly girls in sacramento. My local assembly member paul cook is one of them.

lol about cutting your hours, my cousin is an IHSS worker and she has the same complaint. She has been doing it for like 7 years so she loves the woman who she provides care for or she would have quit long ago. I hope they get to keep their wages. They lose workers when they cut hours and wages.

[NewToCA]

It seems as though the state put together a justification for supplemental funding from the federal government, and then after having the funding approved they decided to move the money around a bit from the original request. I believe that is what is meant by the IHSS cuts violating the ARRA requirements.

[Lovehound]

Originally Posted by EscapeCalifornia

Keep in mind that to a politician, a "devastating cut" is reducing next year's proposed budget increase from 7% to 4%. Cut away!

Very perceptive! And true!

Originally Posted by eagle7

The state of ca is in a financial turmoil thanks to the horrid ca legislature. The unions own the republicans & democrats in the state legislature. The state legislature has doubled in size since gov.benedict arnold took office. The state workers pensions are out of control. We really do have girly girls in sacramento. My local assembly member paul cook is one of them.

I'm sorry to disagree with you.

The state is in financial turmoil because there is a fundamental disagreement between those who want to increase funding for state programs and those who want to decrease taxes. The legislators who want to increase state programs are in the majority but they still need 1-2 votes before they can increase taxes, due to the two-thirds requirement mandated by the state constitution. Even more fundamentally this is the fault of the citizens who voted those legislators into office.

The state legislature is the same size as when Schwartzenegger took office. The issue of redistricting has been in contention for many years.

State employee pensions are just one of the state's many crushing expenses.

[dcashley]

According to one state analyst I was reading on the government web site this morning, the deficit for next year is $20 BILLION. If the lottery loan package passes, the deficit will still be way over $10 Billion.

I thought that was interesting, so I went to the California Department of Finance and downloaded the state budget. The state analyst was wrong. The deficit will be $20 BILLION if the loan package passes...

The state needs to have a 20% accross the board spending cut. This will be painful. But it is easy to implement. Here is how: Tell every agency head that costs must be reduced by 20%. Give each agency head six weeks to present a plan to do exactly that. Any agency head that does not comply will be terminated. Advise each agency head to distribute the reductions as is most appropriate to meet his core mission, and to develop in his plan two alternatives for the cost reductions.

Then make the cuts. Where an agency head makes a recommendation that is just plain nuts, either take one of his alternatives, or replace the agency head and start again. You will probably have to fire just one agency head to get the rest to comply with the executive order.

[carp killer]

Originally Posted by dcashley

According to one state analyst I was reading on the government web site this morning, the deficit for next year is $20 BILLION. If the lottery loan package passes, the deficit will still be way over $10 Billion.

I thought that was interesting, so I went to the California Department of Finance and downloaded the state budget. The state analyst was wrong. The deficit will be $20 BILLION if the loan package passes...

The state needs to have a 20% accross the board spending cut. This will be painful. But it is easy to implement. Here is how: Tell every agency head that costs must be reduced by 20%. Give each agency head six weeks to present a plan to do exactly that. Any agency head that does not comply will be terminated. Advise each agency head to distribute the reductions as is most appropriate to meet his core mission, and to develop in his plan two alternatives for the cost reductions.

Then make the cuts. Where an agency head makes a recommendation that is just plain nuts, either take one of his alternatives, or replace the agency head and start again. You will probably have to fire just one agency head to get the rest to comply with the executive order.

No way on holy h**l you will get the CHP or Prison Guard Union to take a 20% pay cut. NO WAY, they own this state.

[killer2021]

RIP California.