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Poor would be hard hit by proposed California budget cuts

Governor urges ending a key welfare program, health insurance for low-income families and cash grants for college students. An aide sees few options left; an activist calls the plan beyond draconian.

May 22, 2009|Eric Bailey and Patrick McGreevy

Among the possibilities is a 10% reduction in court funding as well as slashing $600 million from state universities and $750 million from the state prisons, mostly from programs designed to rehabilitate inmates.

The governor's aides said the proposals, laid out during the opening session of three weeks of planned legislative hearings to shape the state's deficit solutions, remain ideas under consideration.


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Though nothing is in concrete, Sacramento is running out of solutions. "We have very few options left," Schwarzenegger spokesman Aaron McLear said, adding that it is "very likely" that the new cuts will make the final list.

Advocates for the poor said elimination of those health and welfare programs would come at a steep price. Tens of thousands of families and children would be stripped of temporary financial help and health assistance, and the state would lose a huge pool of federal money that pays the majority of the program's costs.

Anthony Wright, executive director of Health Access California, said federal dollars cover up to two-thirds the cost of the Healthy Families program, which is for the working poor. The federal government pays about 58% of the cost of CalWorks.

"It's beyond draconian," Wright said. "It's insane. Not just for dropping 1 million children from healthcare, but also for losing substantial federal funding."

One of the top Democrats on the 10-person legislative panel charged with shaping the state's deficit reduction plans also expressed frustration with Schwarzenegger's proposals.

"Unexpected twists make for good Hollywood stories but bad governance, especially in a time of crisis," said Assemblywoman Noreen Evans (D-Santa Rosa).

Though eliminating whole programs for the poor is "theoretically" possible, Evans said during the hearing Thursday, "I don't know if it's tolerable."

Another member of the legislative committee, Sen. Mark Leno (D-San Francisco), called the governor's proposals "horrifying" but said all options need to be put on the table so the public can see what may happen if there are no increases in revenue.

Republicans, however, say the state has sunk into a deficit quagmire in part because of a tax-and-spend philosophy and over-regulation of business brought on by the majority Democrats.

"I'm a little [upset], frankly, that we've gotten ourselves into this crisis," Sen. Bob Dutton (R-Rancho Cucamonga) said during the hearing, adding that the state needs to avoid new taxes or borrowing that passes the current woes on to future generations.

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