Schwarzenegger budget would eliminate welfare
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By Kevin Yamamura and Susan Ferriss
kyamamura@sacbee.com
Published: Friday, May. 14, 2010 - 1:06 pm
Last Modified: Sunday, May. 16, 2010 - 11:01 am
Gov. Arnold Schwarzenegger asked lawmakers Friday to eliminate the state's welfare program starting in October and dramatically scale back in-home care for the elderly and disabled as part of his May budget revision to close a $19.1 billion deficit.
The Republican governor also proposed cuts to state worker compensation. Besides asking for a 5 percent pay cut, 5 percent payroll cap and 5 percent increased pension contribution, Schwarzenegger has proposed cutting one day per month of pay in exchange for leave credit.
The proposal would affect all state workers under the governor's authority, regardless of whether they are general fund or special fund employees. Employees would not be able to cash out any of this unused leave credit when they leave state service. The plan would replace the three-day-a-month furloughs, which are due to end June 30.
Schwarzenegger said the sour economy, the failure of the Legislature to make cuts he proposed in January and the federal government's failure to come up with about $7 billion leaves policymakers with no choice but to make deep cuts.
Schwarzenegger also proposed eliminating state-subsidized child care for all but preschoolers as a way to reduce the state's education funding guarantee.
"We literally have to take the ladder away from the tree and shake the whole tree," he said. "We're left with nothing but tough choices. ... I know how many people are suffering out there and how tough this is going to be."
He did not respond directly when asked if his proposal to eliminate welfare was merely a negotiating position with the Democrat-dominated Legislature.
Schwarzenegger also said he would not sign a budget plan unless lawmakers agree to overhaul the budget process, including creation of a "rainy-day fund" and downsizing public employee pensions for new hires.
The governor did not propose any new tax hikes.
The elimination of CalWORKS would make California the only state in the nation without a welfare-to-work program, which is funded in large part by federal dollars, said Frank Mecca, executive director of the County Welfare Directors Association.
"It's the remake of 'Slum Dog Millionaire' in California," Mecca said. He said some families would probably try to resort to small cash grants from counties that are already reeling from cuts and don't have enough money to absorb the need.
By giving up CalWORKS, California would forfeit $3.7 billion in federal block grant funds annually that help fund the program, the Children's Defense Fund said. More than two-thirds of the 1.4 million people enrolled in the CalWORKS program are children.
The CalWORKS program is about 2.4 percent of the state budget, a lower figure than it was when Gov. Pete Wilson was in office.
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