CA-Compromise Budget OKd on 27-10 State Senate Vote

[realFedUp]

Compromise Budget OKd on 27-10 State Senate Vote
The plan cuts programs, raises fees and borrows billions, but still leaves a deficit next year. Passage by the deeply divided Assembly is uncertain.

By Evan Halper and Dan Morain, Times Staff Writers

http://www.latimes.com/news/local/la-me-budget28jul28002418,1,5946424.story?coll=la-headlines-california

Budget bill highlights (box in paper)

By a 27-10 vote, the state Senate passed a $70.8-billion general fund budget Sunday, and will send it to the Assembly today. The plan, AB 1765, contains spending cuts and fee increases and leaves a projected $7.9-billion deficit in 2004-05:

Spending cuts:

Schools

• Rejects proposed Republican cuts in kindergarten.

• Keeps per pupil spending at about the same level when federal funds are included.

Higher Education

• Community colleges increase student fees from $11 to $18 per unit.

• University of California increases student fees as much as 30%.

• California State University increases student fees 30%.

Prison System

• Cuts $120 million by diverting nonviolent inmates to residential drug treatment programs, expands some education programs, develop alternatives to returning parole violators to prison.

Aged, Blind and Disabled

• Eliminates January cost of living increases.

Health Care

• Medi-Cal makes 5% reduction in payments to physicians, pharmacies and managed care plans; retains optional benefits but imposes cost containment for dental care and hearing aid benefits.

Mental Health

• 5% reduction in rates paid to mental health managed care plans.

Revenues and fees:

• Vehicle license fees — $4-billion increase through administrative order.

• Deficit bonds — $10.7 billion through borrowing.

• Pension bonds — $1.9 billion through borrowing.

• Tobacco bonds — $1.5 billion through borrowing.

• Sales and property tax swap with local governments — $2.3 billion annually for five years to repay deficit bonds.

• Fee increases for motor vehicles, court filings, others; permits for air pollution, water pollution and pesticide use; workers compensation program.

Assumptions:

• That the state will win lawsuits threatened against the vehicle license fee hike and pension obligation bond borrowing.

• Indian casinos will give the state $680 million.

• State employees will take a $1-billion pay cut.

Source: Senate Republican Caucus

[David__77]

1. unfortunately, the better of the bad choices...

This is not a very good budget, but it could have been far, far worse. With the budget soon to be behind us, we must focus on defeating the radical rightwing recall.

[realFedUp]

2. There was a quote about likening it to a porch that needs repairs

I am sure the cartoonists draw the situation in CA much better
than any commentary...

These guys aren't acting responsibly to take care of the
future of California.

[ewagner]

3. Any chance

that the House will approve this? If so, would it take some heat off of Davis?

[realFedUp]

5. The Assembly will probably pass it and Davis will sign it.

Everyone passing the last buck in CA.

[headlouse]

4. Repug minority wins with "Screw the Poor" budget

State Senate OKs budget
Severe cuts, deep borrowing, no new taxes -- on to Assembly
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/07/28/MN275958.DTL
"Minority Republicans, whose votes were needed because of the two-thirds majority requirement to pass a budget, steadfastly refused to vote for tax increases. Democrats vowed that they would not balance the budget on the backs of the poor, disabled and vulnerable. In the end, both sides felt they were able to protect their core political values."
Protect their core values? The Democowards seemed to be quite happy with to vote for this "Screw the Poor" budget. On the other hand, the Repugs got what they wanted (no new taxes) but still only 5 of 15 of them voted for it -- I guess they wanted even more social service spending cuts...

"...money for maintenance, textbooks and summer schools was slashed. "

"...health care advocates believe the poor will have a much harder time finding doctors."

"Univ of California: Takes a $471 million hit"
California State Univ: Cuts $410 million"
Community colleges: Cuts $459 million systemwide and increases student fees from $11 per unit to $18 per unit"

"Republicans were able to reduce the size of government. They eliminated the state's foreign trade offices, almost all the funding for the Arts Council ($11mil cut to $1mil), deleted money for the Film California First and state tourism program, while also slashing all general fund money for the Secretary for Resources and Environmental Protection. "

"State workers are also on the chopping block... either through renegotiated compensation packages or elimination of (16,000) positions."
There goes my friend's job