Advocates for the elderly, disabled, poor and others are howling about Gov. Arnold Schwarzenegger’s May Budget Revision, which among other things would eliminate CalWORKS, the state’s welfare-to-work program, as well as most child care for the poor; slash mental-health spending by 60 percent; and freeze funding for schools, but not raise any taxes.
But business groups are fine with it. From John Kabateck, executive director of the National Federation of Independent Business (NFIB)/California, on behalf of Californians Against Higher Taxes:
“We are thankful to Governor Schwarzenegger for making the tough decisions on this budget that will give California a fighting chance to pull out of this recession. By resisting calls for more tax increases, the Governor is leaving more money in the hands of those who create jobs and build businesses as well as the working families hit so hard by this downturn in the economy.
“This is the only way to reduce the state’s alarming unemployment rate and it is a healthy, robust economy that will provide the tax revenues to fund critical programs. We urge the Legislature to follow the Governor’s lead and help put California on the road to recovery.”
And from California Manufacturers & Technology Association President Jack Stewart:
“Californians are out of work and worried about their long-term security while many manufacturers, especially small ones, are concerned about their long-term competitiveness. The Governor’s ‘no new tax increases’ announcement in his revised state budget proposal is a responsible step toward the state’s recovery.
“California’s budget focus must shift from extracting dollars from families and employers to putting people back to work in high wage jobs. Everyone wins when more Californians are working.”
Not so, contends California Budget Project Executive Director Jean Ross, whose nonpartisan nonprofit group advocates for fiscal reforms to benefit low and moderate income Californians:
“Largely because of the economic downturn, California once again faces a very difficult budget year. But the Governor’s May Revision is not the balanced, responsible approach called for at this critical time. It relies too heavily on proposed cuts, threatens the state’s economic recovery, and recklessly gambles with our future. It pulls the rug out from under families already struggling with double-digit unemployment rates and the worst economic crisis this country has seen since the Great Depression and would leave the state ill-prepared to compete in an ever more competitive global economy.
“The Governor’s proposals cut far past the muscle and into the bones of our state’s safety net – the health care, job placement, child care assistance, and other services Californians have turned to in greater numbers for help during the recent downturn. The Governor’s proposed cuts to public schools would further reduce the state’s commitment to education below that of the nation as a whole, a gap that is wider than at any point in the last 40 years.
“Instead, California needs a thoughtful and responsible budget, one that takes a balanced approach that includes more federal aid and prudent and carefully targeted cuts that preserve the core capacity of services. And in the same way that families unable to make ends meet work overtime or take an additional job to boost their incomes, California needs to bring in new revenues. Protecting our public services will ensure we can meet the needs of Californians now and pave the way for an economic recovery.”
A sampling of further back-and-forth, after the jump…
Read the rest of this entry »