California Budget Doomsday?

from the SF Chronicle:



State's future at stake in May 19 vote
John Wildermuth,Matthew Yi, Chronicle Staff Writers

Sunday, May 10, 2009


If California voters reject a package of budget measures in next week's special election, it will set off a fiscal free-for-all that could set the state's course for years to come.

Defeat of the measures on the May 19 ballot would chop nearly $6 billion in expected revenue from next year's budget, on top of a projected $8 billion deficit left by shrinking tax collections. Proposals by Gov. Arnold Schwarzenegger and others to close that gap are driving a wildfire of criticism across the state.

Deep cuts in school and law enforcement budgets, billions of dollars less for local government and slashes in state programs all will be on the table as legislators look for the least painful alternatives.

"There are no good choices," said Tim Gage, former state finance director under Gov. Gray Davis. "There are options, but they're all really ugly."

After billions of dollars in budget cuts in the past two years, the easy trims have been made. Schwarzenegger, Democratic legislative leaders and unions such as the California Teachers Association are using television ads to lay out what they say are the dire consequences of voting down the budget measures.

"If these measures fail, Plan 'B' on May 20th involves even more cuts to education, health care and public safety," Jeannine English, California president of AARP, said in a statement Wednesday. ............(more)

The complete piece is at: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/05/09/MN7317H8HS.DTL&tsp=1