State Spending
Published 12:00 am PDT Saturday, August 25, 2007
Story appeared in MAIN NEWS section, Page A1
As expected, Schwarzenegger vetoed $55 million in funding for the homeless mentally ill sought by Sen. Darrell Steinberg, D-Sacramento. The administration believes services can continue through Proposition 63 funding.
Steinberg called it morally wrong that the budget retains a $45 million tax break for yacht, private plane and recreational vehicle owners to avoid paying sales taxes if they keep the luxury vehicles out of California for 90 days. The governor does not have authority to veto the tax breaks, but proposals to scrap them fizzled in legislative deliberations.
Steinberg said as many as 4,500 homeless Californians will not receive medical and psychiatric treatment under an acclaimed program that has lowered the number of days these people spend in hospital emergency rooms and behind bars.
Because the governor's list of vetoes was kept secret, Friday's announcements took some by surprise. Public libraries, for one, took an unexpected hit.
Schwarzenegger cut a total of $15 million from programs that allow library systems to lend books to each other, run bookmobiles and operate other literacy programs.
Lobbyists for the California Library Association said libraries may have to lay off employees and some smaller facilities won't be able to buy new books for the whole year.
And despite a move by Democrats to increase funding for county social workers to protect seniors from abuse, the Schwarzenegger administration vetoed $12 million from the program. The funding increase would have been the first since 2000 for Adult Protective Services, which protects elder and dependent adults who have been physically, financially or mentally abused.
"What a dreadful decision this is," said Assemblywoman Patty Berg, D-Eureka. "The only people who could be happy with this cut are the criminals who prey on the elderly."
The governor also cut $17.4 million to overhaul the state's conservatorship system serving thousands of needy seniors too fragile to handle their own affairs.
Some Republicans contend that the plan is based, in part, on shaky revenue assumptions and one-time savings. There seems to be little disagreement, however, that next year's budget, for the fiscal year beginning July 1, 2008, is likely to have a multibillion-dollar deficit unless permanent spending cuts or revenue increases are addressed. Finance Director Mike Genest said the governor and lawmakers will have to deal with a $6.1 billion deficit next year.
For his part, the governor is confident that he and the Legislature can whittle it down.
"I think it again will be zero," he said. "I think that's what we should shoot for from here on out."
About the writer:
· The Bee's Judy Lin can be reached at (916) 321-1115 or jlin@sacbee.com.
HIGHLIGHTS OF STATE'S 2007-08 BUDGET
• Cuts the operating deficit to zero; the state expects to take in and spend $102.3 billion during the year
• Does little to cut ongoing spending; multibillion-dollar deficits expected next year
• Fully funds K-12 education
• Contains no tax increases
• Raises student fees 7 percent at UC and 10 percent at CSU
• Shifts $1.3 billion in funds from public transit agencies
• Delays until June 2008 cost-of-living increases for low-income elderly, blind and disabled
• Assumes state will reap $1 billion from sale of EdFund, its student loan guarantor
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