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Opening Volley in Yearlong Fight for Control of Spending

THE CALIFORNIA BUDGET | NEWS ANALYSIS

January 11, 2005|Dan Morain, Times Staff Writer

SACRAMENTO — Whether the budget Gov. Arnold Schwarzenegger sent to the Legislature on Monday will solve the state's perennial deficit problem remains to be seen. But that's not the point.

Rather, the governor's plan starts what is sure to be a yearlong fight for control of state spending, a battle that could determine how the state shapes its budget for years to come. Proposing a second year of cuts in some social and educational programs and a new round of borrowing, the Republican who came to town to "blow up the boxes" has made it clear that this is the year for the showdown.


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Even as he announced a plan that would make more social welfare cuts than last year but uses many of the same mechanisms to balance the budget, Schwarzenegger decried it -- underscoring that what he wants is an overhaul of the way California legislators create spending plans. "This budget is not anything that I want," he said.

Schwarzenegger and his aides detailed a $111-billion plan that, while increasing spending 4.2% overall, would trim some health and welfare programs, even as overall spending on social services rises by 4.6%.

He is also calling for changes in one of the most untouchable of programs -- the formulaic way public schools are funded. It's one that Democrats and their allies, the powerful California Teachers Assn., are sure to defend fiercely.

He wants to temper the increase for public schools, while also raising tuition for public university students. And he is calling for borrowing as much as $6 billion -- despite a vow last year that the state would never again spend more than it took in.

Schwarzenegger enters the fray with roughly 70% of the electorate approving of his performance, according to a variety of polls. In the view of many budget experts, he also begins the spending fight having promised more in his first year than he delivered.

The budget he signed last year imposed few significant cuts and relied heavily on borrowing. By serving up a plan that he said last week would "not be pretty," he hopes to demonstrate that there is one way out of the state's perennial budget mess -- his way.

"He was elected to shake things up," said Democratic consultant Darry Sragow, who advises several legislators. "If he is going to fulfill his promise, he has to put the state's money where his mouth is. We'll see whether he has the political stamina to do that."

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