Yesterday the Governor gave a sobering State of the State address where he
called on the legislators to put aside their ideological differences and continue their work on the state budget. The Governor stressed $42 billion deficit and the fact the California, the eighth largest economy in the world, would be insolvent by the end of the month without a solution. On December 31, 2008, the Director or Finance Mike Genest released the 2009-10 Governor’s Budget General Fund Proposals. In it the Governor outlined his proposals for balancing this year’s budget as well as closing the gap projected for last year.
In addition to these proposals, the Governor ordered the beginning in February, most state offices, like the DMV, will be forced to close the first and third Fridays of each month. All this in an effort to cut waste, reduce spending while increasing revenue, keeping people in their homes and stimulate a slow economy. The economic downturn has had a huge effect on the state revenue collections which has made the budget situation all the more urgent.
Below is a brief overview of the Governor’s budget proposals:
• Cut spending by $17.4 billion with most reductions in the largest areas of the budget: education, health and human services and prisons.
• Raise $14.3 billion in new revenues mainly from a temporary one and one half cent increase in the state sales and use tax.
• Borrow $10 billion
HOPE will continue to monitor the budget situation and the effects on Latinas and their families.
What do you think of the state budget? Post a Comment and let us know!
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