In the annual May revise, Gov. Arnold Schwarzenegger unveiled two new visions of the state budget – bleak and bleaker.
he governor’s proposals to balance the tottering state budget include $9 billion in cuts – as much as $5 billion of which could come from school spending. They also include laying off 5,000 state workers, accelerating collection of or increasing $2.8 billion in fees and borrowing a staggering $7.5 billion from financially strapped local governments and a cash-strapped private investment market.
The state also would delay repairs in the Capitol for a year, sell the Los Angeles Coliseum and Sports Arena, San Quentin State Prison and other facilities, consolidate state agencies, and eliminate some boards and commissions.
Schwarzenegger offered two versions of the traditional “May Revise” of the budget because of Tuesday’s special election. Voter approval of three of the six ballot measures – 1C, 1D and 1E — would give Schwarzenegger and legislators $5.9 billion more in general fund revenues to close the gaping red-ink wounds in the current fiscal year’s budget and the budget for the fiscal year that begins July 1.
Schwarzenegger’s “Plan B,” predicated on the measures losing, includes $2.3 billion more in spending cuts for schools; $1.7 billion higher fees and $1.4 billion in additional borrowing.
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