More Reflections On Why California Is So Broke

Editor: It seems there is a renewed interest in why our great state is so broke.  Here, we are re-posting two articles from last Spring.

Massive Cuts While A Permanent Corporate Tax Break Stands?

by David Dayen / Calitics / May 27, 2009

Despite his admission that California is ungovernable, the Governor soldiered on today, announcing the full slate of revised budget cuts to replace his proposed borrowing, since scrapped, and to fill the even larger deficit estimated by the Legislative Analyst.  As expected, the Governor called for eliminating the CalWORKS program for the poor, eliminating Healthy Families to provide health insurance to poor children, and phasing out the Cal Grants program which provides financial aid to California students.  But that’s not all. As Noreen Evans says, the Governor’s cuts “dismantle the New Deal.”  Here are some of the lowlights in these 25 distinct cuts:

• Add another furlough day to an already-negotiated contract between the Governor and SEIU Local 1000.
• Cuts $1 billion dollars over 3 years to UC and CSU budgets.
• Eliminates CalFIRE equipment repair and replacement for one year.
• Eliminates all General Fund support for state parks, forcing them to become self-sustaining to survive.
• Cuts Medi-Cal coverage for breast and cervical cancer treatment and dialysis.
• Eliminates funding for Indian Health Services, Rural Health Services, and Seasonal Agricultural Workers.
• Reduces funding for the AIDS Drug Assistance Program.

For the remainder of this article, go  here.

Thanks California Republicans for Screwing the Middle Class

by Ellinorianne/ OC Progressive / April 2, 2009

It was just over a month ago that our State Legistlators and our Governor were telling us that “everyone had to give up something to repair the state’s finances”.  It made a good sound bite and attempted to create a shared sense of urgency.  But that’s about it, it’s not the reality of the 42 billion dollar fix.The reality is if you’re a bus driver in the OC, you lose your job, while bus riders see a draconian cut in service. If you’re a multi-national business, you get a fat new tax cut.

“As services are cut and every ordinary taxpayer will have to pay more, it is appalling that major multinational corporations get new tax breaks,” said Lenny Goldberg, executive director of the labor-backed nonprofit California Tax Reform Association. “Everybody is being asked to sacrifice, except for large corporations, who instead get huge tax cuts.”AP

So rather than raise taxes on everyone where as Arnold put it, we all “give up something”, we’re facing massive teacher layoffs and cuts to important social services that are much needed right now because Republicans have the ability to hold the budget hostage by the 2/3’s vote.And as our friends at Calitics were able to point out, US Census Proves It: California NOT the Highest Tax State.  It’s something a lot of the religiously anti-tax use as a talking point to decry the newest taxes to help get us out of a hole.  A hole that was created by Republicans cutting taxes at a time when we should have created a rainy day fund.  As long as they get their way, Republicans find it convenient not to stand in the way of what they characterize as “excessive spending” until it suits their agenda.

For the remainder of this article, go here.