SAN FRANCISCO (Reuters) - California Gov. Arnold Schwarzenegger and lawmakers will likely face the arduous task of closing a state budget gap in excess of $21 billion with a clutch of ballot measures aimed at bolstering the state's finances poised for defeat.
The Republican governor last week said the government of the most populous U.S. state faced a shortfall of $15.4 billion for its next fiscal year even if the measures were approved -- underscoring the severe downturn in state revenues with personal income in California shrinking for the first time since 1938 amid recession and double-digit unemployment.
Without voter approval for the measures, California would face a $21.3 billion deficit, according to Schwarzenegger, who with the state's Democrat-led legislature put the measures to voters as part of a February budget compromise to close a nearly $42 billion shortfall through June 2010.
Initial results for Tuesday's special election posted by California's secretary of state showed voters soundly rejecting the five fiscal measures on the ballot. A sixth measure barring pay increases for state officials amid deficits was winning.
And yes the pay raise ballot will pass.
Schwarzenegger spoke about the apparent defeat late Tuesday:
"Tonight, we have heard from the voters, and I respect the will of the people who are frustrated with the dysfunction in our budget system," the governor said in a statement. "We face a staggering $21.3 billion deficit, and in order to prevent a fiscal disaster, Democrats and Republicans must collaborate and work together to address this shortfall. The longer we wait, the worse the problem becomes and the more limited our choices will be."
NEW YORK (CNNMoney.com) -- Note to Californians: Get ready for larger class sizes, fewer police patrolling the streets and more public offices shuttered on weekdays.
State officials are now scrambling to close a $21.3 billion fiscal shortfall, a gap that grew by $6 billion overnight after residents voted down five budget propositions Tuesday.
The state must make "severe cuts now," Gov. Arnold Schwarzenegger said Wednesday. He and state legislative leaders will have to hammer out a budget deal before the fiscal year ends on June 30.
"There will be around $5.3 billion in additional cuts in education, there will be severe cuts in health care, which is another area where you know we spend a lot of money, and then of course you have to go and look in other areas like prisons," said the governor, who was in Washington, D.C., meeting with the Obama administration.
One of the most particularly interesting facts about the threat to release prisoners is the fact that half of them are illegal immigrants. If these people are here illegally and would possibly be eligible for early release then they should be sent back to their country of origin they came from. People who are here illegally and commit crimes shouldn't be a burden to the people of California or to the United States. The fact that the taxpayers of this country have had to pay for anyone here illegally and serving time in prison is a joke. Illegal immigrants have contributed to the current economic crisis, unfortunately neither party seems to have any interest in fixing the immigration system and securing our borders.
ReplyDeleteAnonymous,
ReplyDeleteGuess what? These are serious criminals. I suggest you look up the reals statistics about crime and illegal crimes. It is huge nation wide.
Same with welfare costs, healthcare and check how much money is sent toMexio, by illegal aliens not paying income taxes or social security.
Illegal Aliens are illegal, not undocumented workers or immigrants! They have broken our laws and are hurting the citizens of this country. Plenty of unemployed would work there jobs, if the employers had to pay highe wages.
Illegal aliens problem are intentional so employers can keep labor costs low and maximize profits to the owners.
Interesting how we have 2 illegal wars, never declared per constitution, 1000's of miles away, but we are unable to protect are own borders?
What a joke!
When is Schwarzenegger and Palosi going to get the BIG message? California, and America cannot keep giving away what it does not have. Get the welfare queens, immigrants, and other unworthty fit for work individuals off the almighty give away programs. The polititions got themselves in these positions and the only way to get things back solvent is to stop the give aways and pay off the bills. It is either that or go bankrupt and then no one will finance the fools who run the ship. In case I was not clear Gov. Schwarzenegger and Speaker Palosi, stop being politions looking for votes through give away programs and take care of the people that actually pay your wages and bills.
ReplyDelete