As the Details of Schwarzenegger’s “May Revise” of California Budget Emerge, There are Deep Cuts That Will Hurt—Even in Educatio

[courtesy of California Progress Report]

By Frank D. Russo

The Governor spoke briefly this afternoon at 1 p.m. on the May revise of his proposed California budget, took a few questions, and left in a little over 20 minutes. Ne was followed by Michael Genest, his cabinet member who heads the Department of Finance and who is in charge of the details on the budget and who walked reporters through an overview of the budget and took a number of questions from reporters.

The Administration pegged the budget deficit at $17.2 billion and said it would have been $24.7 billion had the legislature not acted earlier this year and made changes and cuts totaling $7.5 billion.

The Governor and Genest frankly admitted that the cuts being made are painful and were difficult choices. Despite the spin being put on the proposals, such as that education is being “fully funded” as required by the state constitutional minimum requirements of Proposition 98, John Laird, the Assembly Budget Chair released a statement and a 46 page report indicating there are $4 billion in cuts to education. There also are severe cuts in health and human services—where 26% of the cuts were proposed by the Governor in areas that include the payments made to Social Security recipients and payments to those who provide in home supportive services to the disabled, aged, and infirm.

The Assembly and State Budget Committees will be working overtime to pour over the budget committee and the Legislative Analyst’s Office is expected to complete an analysis in 4 days. We will be publishing many articles as they are available to explain what is being proposed and the debate on the budget which will now begin in earnest.

There is a proposal to generate new revenues by “securitizing” the California State Lottery, charging additional “fees,” and reforms of the budgetary process in addition to the proposed cuts.

For now, you can watch the Govenor and Genest at their press conference on the Cal Channel archives and also watch the Democratic reponse as well.

You can go to the Department of Finance web site on the revised budget and review the details of what is contained in it as well.

Laird’s report as Chair of the Assembly Budget Committee, Highlights of Governor’s Proposed May Revision 2008-09 State Budget, is surprisingly readable and detailed in its 46 pages. It has an overview as well as sections on major parts of the budget.

Laird also issued a statement:

“The governor’s May Revise proposals are not the right answer for California and are not a real fix. They’re bad for our economy, lay off teachers and are based on risky assumptions.