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LabRat
11-27-2003, 01:29 PM
http://www.freerepublic.com/focus/f-news/1028327/posts

Schwarzenegger seeks $1.9 billion in immediate budget cuts

(11-24) 18:52 PST SACRAMENTO (AP) --



Transportation spending would be cut by $530 million and health and human services by $440 million this fiscal year under $1.9 billion in budget cuts proposed Monday by Gov. Arnold Schwarzenegger.

Education would absorb $160 million in cuts this year and next under the proposal Schwarzenegger presented to legislative leaders, a copy of which was obtained by The Associated Press.

The new governor's finance director, Donna Arduin, plans to outline the proposed cuts to the Assembly and Senate budget committees Tuesday, along with details of Schwarzenegger's proposals for a $15 billion borrowing and spending limit package he wants voters to consider in March.

Legislators have grown increasingly anxious as they await details of Schwarzenegger's borrowing and spending cut proposals, with a Dec. 5 deadline drawing near and a Thanksgiving break looming.

But they're likely to be unhappy as well with his proposals for nearly $2 billion in cuts, with more to follow when the Republican governor presents next year's proposed budget in January.

"I think there's some real concerns about them -- the impact they have on people," said a Democratic legislative budget analyst. "There's things in here we rejected last year."

The proposals include a 10 percent reduction in Medi-Cal provider rates on top of an already approved 5 percent cut, to save nearly $152 million; eliminating state wage assistance to the staff of long-term care facilities to save $46 million; eliminating respite care and recreational activities for the developmentally disabled to save $69 million.

While health and human services programs would be cut $440 million in the second half of this fiscal year, when ends June 30, they would absorb $1.163 billion in cuts next year under Schwarzenegger's proposal.

The biggest block of cuts is $1 billion to the Business, Transportation and Housing Agency, more than half of which would be lost transportation spending to help fill the deficit in the state's general fund. That agency would take a $417 million cut next year as well.

The state also would postpone $475 million in vehicle license fee reimbursements until 2006-7, and delay $105 million in reimbursements to local governments for flood control projects.

Also Monday, Arduin named a three-member volunteer panel of experts to advise Schwarzenegger on the $15 billion in borrowing he wants voters to approve on the March ballot. Schwarzenegger wants lawmakers to put the borrowing before voters along with a measure that would limit spending, in a bid to resolve the state's current budget crisis and prevent a recurrence.

The advisory panel will be chaired by Carl E. Reichardt, retired chairman and chief executive officer of Wells Fargo & Co. and Wells Fargo Bank. He is a board member and chairs the finance committee of Ford Motor Co.

It also will include John A. Bohn, chairman and chief executive officer of GlobalNet Venture Partners LLC, an international financial advisory and consulting firm. He previously was president and CEO of Moody's Investors Service.

The third member is Robert E. Denham, a finance lawyer with the law firm of Munger, Tolles & Olson. He previously was chairman and CEO of Salomon Inc.

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