Governor's spending plan cuts welfare, boosts colleges

California would eliminate its welfare program, most state-subsidized child care and make deep cuts to prison spending, health care and human services programs under the governor's revised budget proposal unveiled today.

Gov. Arnold Schwarzenegger said the budget plan - which he said includes no tax increases - reflects the dearth of options left to the state. He also revised the projected deficit from $20 billion to $19 billion.

But while there were many suggested cuts, the governor also proposed increasing funding for the University of California, California State University system and community colleges, saying the money should help stop tuition hikes. He also plans to fully fund parks.

He said the state has tackled all the "low, middle and high hanging fruit," and must now "take the ladder away from the tree and shake the whole tree."

And he warned that he will not sign a budget unless the Legislature tackles reforms of the state's tax, pension and budget systems that he blamed for the current woes.

"I believe a budget should be a reflection of what we in California value most, and what my administration stands for, in good times and in bad," he said. "It should still provide a safety net for our most vulnerable citizens, but we are not because our budget system is broken. I now have no choice but to stand here today and call for the elimination of some important programs."

In addition to eliminating CalWORKS, the state welfare program that serves 1.4 million people - two-thirds of them children - Schwarzenegger's proposal includes the elimination of all child care programs except after school and preschool programs. That program subsidizes child care for about 142,000 children.

The governor's plan would also shift a number of costs to counties and cities. He is proposing a 60 percent cut to community mental health programs. That $435 million in costs would fall to counties. And he wants to move 15,000 state prisoners to local jails to save $244 million. The budget also includes a $750 million cut to the In Home Supportive Services program, which provides home care to 430,000 elderly, sick or disabled Californians and employs 376,000 people.

CalGrants, the state's popular college assistance program, would be left intact under the proposal. But recipients of many public health programs would see their services shrink and costs increase under the proposal.

The budget was immediately praised by Republicans and anti-tax groups but slammed by Democrats, public unions and those who rely on health and human services.

"With today's revision of the state budget, Gov. Schwarzenegger has accelerated his slash-and-burn cuts to vital services into an all-out scorched earth campaign," said California Labor Federation Executive Secretary-Treasurer Art Pulaski in a written statement. "At a time when joblessness and recession continue to batter California families, the devastating cuts the Governor proposes would choke off any hope of economic recovery."

But Assembly Republican Leader Martin Garrick, R-Carlsbad, praised the proposal as a "serious spending plan that prioritizes funding and makes difficult but necessary decisions."

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/05/14/BA2S1DEV6K.DTL&type=politics&tsp=1#ixzz0nx9mnUlX