|
|
|
|
Progressive Links :
MAY 29, 2009: Schwarzenegger proposes 5% cut in California employee salaries (LA Times article - click here) |
|
|
|
|
click below thumbnails for Dees illustration magnifications : |
The reduction would affect 235,000 state workers who
already are taking mandatory unpaid furloughs to help
close a projected budget gap of $24.3 billion.
![]()
Schwarzenegger proposes 5% cut in California employee
salaries
May 29, 2009
Reporting from Sacramento — Gov. Arnold Schwarzenegger
on Thursday readied a proposal to cut state worker
salaries by an additional 5% as local government
officials lambasted his bid to take $2 billion from
cities and counties to help curb the state's growing
budget deficit.
The governor's proposed salary reduction would affect
235,000 state workers who already are taking mandatory
unpaid furloughs to help the state grapple with a
projected budget gap of $24.3 billion.
Combined with the furloughs, ordered by Schwarzenegger
earlier this year, the new proposed salary cuts would
push many state employees' wages down by about 15%,
saving the state $470 million.
"Everyone in the state is cutting back right now --
businesses, families," said Matt David, a spokesman for
Schwarzenegger. "The governor feels it's very important
that state workers do the same thing."
The new proposal would not affect employees of the state
Legislature or court system, another spokesman said.
Schwarzengger plans to formally announce the wage cuts
today, along with additional budget cuts, for a total of
$3 billion in savings. The governor is scheduled to
address a joint session of the Legislature on Tuesday,
after the last of a series of public hearings on the
budget concludes.
On Thursday, dozens of local government representatives
told a 10-member legislative budget panel that
Schwarzenegger's plan to tap them for $2 billion would
force cities and counties to slash police and fire
protection, shut libraries and cause a cascade of other
troubles as they struggle to make ends meet.
The governor's proposal, which involves borrowing local
property tax money and repaying it within three years
with interest, simply transfers the state's fiscal woes
to a rung of government that can least afford it.
"The only thing that does to our county is put us in a
truly perfect fiscal storm," said Supervisor Kim Vann of
Colusa County, where budget cuts have resulted in
layoffs, a spending freeze, an overcrowded jail and
other troubles. "It will mean financial devastation."
Schwarzenegger wants to take nearly $700 million from
cities and $330 million more from special districts that
provide fire protection, flood control, mosquito
abatement and other services.
Counties could be hit particularly hard, with
Schwarzenegger proposing to cut nearly $1 billion from
their funding. Los Angeles County alone could lose $300
million, adding to deep revenue declines amid the
sagging economy.
All told, the county could be subjected to spending cuts
approaching 20% of its discretionary money.
"It's beyond my wildest imagination. It's like nothing
I've ever seen before," L.A. County Supervisor Don Knabe
said in an interview. "Do I want a deputy sheriff pulled
off the street? Do we close City Hall for a day? Do we
close a library for a day?"
Meanwhile, proposals to eliminate the state's Healthy
Families insurance program for the working poor and
reduce Medi-Cal-funded healthcare for the very poor
could send patients streaming into county medical
facilities -- adding even more cost for local
governments. Local governments also could lose an
additional $700 million slated for transportation
projects.
Schwarzenegger said the deep deficit made it imperative
that California borrow from local governments.
"We could not see any way out without, you know, having
some help from the locals," the governor said at an
afternoon event outside the Capitol.
"They will get their interest and they will get their
money back," Schwarzenegger said. ". This is not
like in the old days . where the state of California
just grabbed that money and ran."
In the early 1990s, the state siphoned millions from
cities, counties and special districts without paying it
back. A voter-approved ballot measure in 2004 prohibited
those sorts of raids, but gave state lawmakers the power
to borrow property tax dollars intended for local
governments in an emergency as long as it was repaid in
three years, with interest.
Meanwhile, the governor's latest wage-cut proposal was
greeted like a plague by state workers.
Yvonne Walker, president of Service Employees
International Union Local 1000, which represents nearly
half of all state workers, said employees have "already
stepped up and made sacrifices."
Instead of cutting salaries, she said, Schwarzenegger
should cancel vendor contracts worth more than $5
billion and end "corporate tax loopholes that rob
Californians of the state services they deserve."
Schwarzenegger late last year forced state workers to
take off two days a month without pay, amounting to
about a 10% salary reduction. The new decrease, which
would have to be approved by lawmakers during budget
negotiations, would not come with any time off and would
take effect with the new budget in July.
Schwarzenegger in recent weeks has proposed closing more
than $21 billion of the budget gap mostly through
drastic cuts to a variety of state programs that provide
healthcare, welfare, education and law enforcement.
The $3 billion in additional budget cuts he plans to
propose today include the wage cuts and additional
reductions for education and health and human services,
government sources said.