 Economy Editor's Note: Given that we are entering - or have already entered - a recession, it is likely that the rest of the - Steven Robinson A look at Schwarzenegger's proposed budget cuts The Associated Press Thursday, January 10, 2008 Gov. Arnold Schwarzenegger declared a fiscal emergency in The emergency declaration forces lawmakers to begin addressing the deficit within 45 days, instead of waiting until the new budget year begins July 1. Among the governor's proposals: EDUCATION: Cut $400 million in the current year and reduce the state's share of K-12 funding by $4.4 billion, or about 10 percent, in the 2008-09 budget year. The proposal includes cutting $2.6 billion from school and county apportionments and $1.1 billion from class-size reduction programs, charter school grants and home-to-school transportation programs. About $360 million also would come from special education programs, while $199 million would come from child development. Proposition 49, the after-school grant program championed by Schwarzenegger before he was governor, would continue with a 10 percent cut. CORRECTIONS: Save nearly $400 million by releasing 22,159 inmates early and eliminating active parole supervision of 18,522 former inmates. Prisoners with less than 20 months remaining on their sentences would be released if they are determined to be "low risk." Only prisoners serving sentences on nonviolent, non-sex offender crimes would be eligible for release. Combined, the cuts and weakened parole policy would reduce The corrections department also would eliminate 6,000 positions, including layoffs of about 2,000 guards. PARKS: Close 48 state parks, beaches, reserves and recreation areas to save $14.3 million. The parks would be closed until enough money is available to reopen them. The governor's office also said some parks could be turned over to local governments to operate. Also, reduce seasonal lifeguards at state beaches in HEALTH SERVICES: Cut nearly $3 billion from health and human services programs, including about $1 billion from Medi-Cal, partly by eliminating dental coverage for about 3 millions adults. NEW REVENUE: Assess a surcharge of 1.25 percent on all residential and commercial property insurance statewide to fund improvements to state firefighting efforts. According to the proposal, the surcharge would cost homeowners about $11.25 annually if they pay $900 in homeowners insurance. The fee would raise $105 million in the budget year beginning in July. The state would use the money to fully staff hundreds of fire engine crews during peak fire season, buy 11 state-of-the-art firefighting helicopters and keep two National Guard helicopters on standby year-round, rather than on the current 24-hour notice for call-up. Increase vehicle fees by $11 to raise $385 million for increased costs for the http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/01/10/state/n181951S69 |