Last week Governor Schwarzenegger released his proposed 2007-2008 budget.  It’s a classic good news/bad news budget—and a reasonable start to a process that begins now and will hopefully end on time in June. 

The governor has been talking about a new “post-partisan” era in Sacramento.  With regard to his proposed budget, I think we can get there.  But there are problems, most notably his proposed cuts to CalWORKS, the state’s public assistance program. 

At the same time the governor proposes CalWORKS cuts that target children, he also proposes early repayment of debt to Wall Street bankers.  If the choice is pre-paying debt to bankers or continuing vital services for California’s kids, I’ll choose the kids. 

The governor’s budget also places additional pressure on California’s middle class through new fee increases for UC and CSU students, as well as cuts to academic preparation programs that ensure access to higher education.

The governor has proclaimed his $103.1 billion budget balanced, using major cuts to assistance for underprivileged children, as well as shifts of gas tax revenues, Proposition 98 funds and bond funds, and other reductions throughout the budget.

The governor's proposed budget also relies on several assumptions, totaling over $1.5
billion in specific risks.  And the non-partisan Legislative Analyst has questioned his rosy estimates and whether his budget is actually balanced.  

While an important first step in the budget process, the governor's proposed budget is only that, a proposed budget.  The final budget will come from months of legislative hearings, deliberations, updates and negotiations.

In the budget process, the legislature faces a number of additional key questions about the governor’s proposal:

• Should Proposition 98 education funds be used for general fund purposes rather than increased funding for the classroom, additional counselors, efforts to reduce dropout rates or other educational priorities?
• Is shifting the responsibility for bus transportation away from school districts and to transit districts best for the students, and should school transportation become dependant upon fluctuating gas prices? 
• As the state attempts to "…free ourselves from oil and OPEC," as stated by the governor, does it make sense to permanently divert $1 billion away from public transportation?

As with all proposed budgets, everyone will find things they like and dislike.  Through the annual budget process—and with help from our community and others across the state—we can craft a budget that best mirrors our values and priorities.

To learn more about the governor’s proposed budget, read the Assembly Budget Committee’s first review: http://democrats.assembly.ca.gov/members/a27/budget/Highlights2007.pdf