By Veronica Mackey 

     Just when you thought California's money troubles couldn't get any worse, Gov. Schwarzenegger is proposing to cut $2.8 billion more. In addition to the $21 billion already planned, the state could end up with cuts that total $24 billion. This is the estimated deficit that must be met by the end of July, or the state will run out of money.
     The state's social safety net would lose $1 billion more in funding for the poor, disabled and aged. Cities and counties would lose an additional $242 million in transportation funding. Health, education and welfare would be the hardest hit areas, followed by local government services. They include public assistance programs, state sponsored health care, adult day care for seniors, public education, school transportation, caregiver programs. The governor's proposal would reduce spending in the state's general fund, from $103 billion to $83.5 billion for the coming fiscal year, nearly 20%.
     Other proposed cuts include making absentee ballots available, resolving child custody problems, investigating deaths at mental hospitals, posting safety signs on beaches, collecting DNA samples from bodies, and caring for abandoned pets.
     California Controller John Chiang wants the governor and state lawmakers to come up with a plan by June 15. But Assembly Speaker Karen Bass (D-Los Angeles) said Friday she's not sure if that will happen. Bass is part of the 10-person legislative budget panel who attended a hearing of poor and needy people who will be directly impacted by the cuts.
     "It is painful to know that the kinds of programs that you cut are absolutely essential to people," Schwarzenegger said. "But when you don't have the money, you can't promise something to people, something you cannot afford." Most Republicans support the governor's plan. Democrats are continuing to hold out for a better one.
     "We will accept some of the governor's cuts, not all of them," said Assembly Speaker Bass. "Some of these cuts could result in people losing their lives."
     Schwarzenegger blamed extended cuts on the failure of voters to pass ballot measures in the May 19 special election. Had the measures been approved, the state would have raised nearly $6 billion.
     The governor said he understands why voters did not want to raise taxes, but added that now we have to "act fiscally responsible." State officials have criticized the way the measures were worded, calling the language "confusing."
     "Not all the Governor's proposals make sense. Should we be the only state without a safety net? Should we eliminate efficient programs that bring in federal money? There are tough decisions ahead but they have to be smart decisions as well," Bass said.
Health care advocates said state cuts would lead to federal cuts. Whenever the state terminates a government program, it loses federal funding too.
     Schwarzenegger said the state had no choice:
     "We sometimes give up federal money so we can move forward and live
within our means."
     Some have argued that the state budget could be balanced by boosting taxes on alcohol, tobacco and the wealthy while adding a fee for oil pumped from California soils.

"In addition to closing the budget deficit we're also getting a head start looking at important reforms so once the deficit is solved we can start looking at ways to keep California from getting in this situation again," Bass said.