Facing Calamity, Calif. To Lay Off 20,000
State Mired In Budget Stalemate; Public Works Projects Halted
-
State Senate President Pro Tem Darrell Steinberg, D-Sacramento, left, talks with Democratic state Senators Christine Keough, of San Diego, second from left, Gloria Romero, of Los Angeles, third from left, Ellen Corbett, of San Leandro, right and Denise Ducheny, of San Diego, seated, at the Capitol in Sacramento, Calif., Monday, Feb. 16, 2009. (AP Photo/Rich Pedroncelli)
-
State Fast Facts California Learn about the people, economy and geography.
-
Interactive Eye On The Economy In-depth features on U.S. markets, taxes, employment and the Federal Reserve.
In addition to the layoffs, the state also plans to halt all remaining public works projects, potentially putting thousands of construction workers out of jobs.
"We are dealing with a catastrophe of unbelievable proportions," said state Sen. Alan Lowenthal, a Democrat from Long Beach and chairman of the Senate transportation committee.
Senate leader Darrell Steinberg announced late Monday that lawmakers had failed to find the final vote in his chamber as Republicans refused to support tax increases. He called a session for Tuesday and said he would put the tax provisions of the budget proposal up for a vote, even if they would not pass.
Steinberg warned lawmakers to bring their toothbrushes, saying they would not leave until that vote was secured.
"One member," Steinberg said. "One more member to put the interest of the state ahead of ideology and ahead of any parochial concern."
Like other states, California faces plunging tax revenue that has imperiled state services. The proposal put before lawmakers this weekend was negotiated by Schwarzenegger and the four legislative leaders and appeared to have support of the required two-thirds majority in the state Assembly.
However, it was falling one Republican vote short in the Senate, a situation that had not changed throughout a weekend marked by long hours and uncertainty over the state's future.
The plan includes $15.1 billion in program cuts, $14.4 billion in temporary tax increases and $11.4 billion in borrowing. The package also would send five ballot measures to voters in a special election to be held May 19.
The stalled effort prompted Schwarzenegger to make good on an earlier promise to begin the layoff process for thousands of state workers.
The governor had delayed releasing the notices on Friday when it appeared lawmakers would pass a compromise plan to close the state's $42 billion shortfall. But with marathon weekend sessions failing to produce the necessary votes, Schwarzenegger's spokesman said the administration had no choice.
"In the absence of a budget, the governor must do everything he can to cut back on state spending," spokesman Aaron McLear said.
The notices will start going out Tuesday to 20,000 workers in corrections, health and human services and other agencies that receive money from the general fund. Administration officials are seeking to eliminate up to 10,000 jobs as part of the governor's order to cut 10 percent from the government payroll.
Despite the warnings of impending fiscal calamity, most rank-and-file Republicans have refused to agree to higher taxes. Republican lawmakers blamed Democrats for years of overspending.
"You're not going to go back to the people's pocketbooks to fuel that spending," said state Sen. Dennis Hollingsworth, R-Temecula.
During a lively floor session Monday night, state Sen. George Runner, R-Lancaster, defended his colleagues' stance against tax hikes and said his constituents were pleading with him to vote no on the budget proposal.
He accused Democrats, who hold majorities in both houses, of using the recession to drive an agenda of tax increases.
"You want this emergency," Runner said, drawing jeers from Democrats in the chamber. "Listen, you may not like to hear what we have to say, but it's what we believe."
Steinberg, the Senate president pro tem, acknowledged that tax increases were difficult for all lawmakers to swallow but said the Legislature had no choice.
"Nobody likes that idea, but remember the reason we are in this crisis is because we are in a national and international crisis," he said.
Lawmakers broke the record for longest legislative session in state history over the weekend before disbanding Sunday night. The Assembly was at one point in session for 30 hours.
© MMIX The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
- the state of California pays $10.5 BILLION dollars a year for basic welfare support for ILLEGAL IMMIGRANTS..
bless their kind heart - Reply to this comment
- the state of California pays quarter of a million dollars a month to feed prisoners their daily regiment of fruits and veggies..
bless their kind heart! - Reply to this comment
- FYI Unemployment rates by state.
51 MICHIGAN 9.6
50 RHODE ISLAND 9.3
48 CALIFORNIA 8.4
48 SOUTH CAROLINA 8.4
47 OREGON 8.1
45 DISTRICT OF COLUMBIA 8
45 NEVADA 8
44 NORTH CAROLINA 7.9
43 GEORGIA 7.5
39 ALASKA 7.3
39 FLORIDA 7.3
39 ILLINOIS 7.3
39 OHIO 7.3
38 MISSISSIPPI 7.2
37 INDIANA 7.1
36 KENTUCKY 7
35 TENNESSEE 6.9
34 MISSOURI 6.7
33 CONNECTICUT 6.6
31 MINNESOTA 6.4
31 WASHINGTON 6.4
29 ARIZONA 6.3
29 MAINE 6.3
25 ALABAMA 6.1
25 NEW JERSEY 6.1
25 NEW YORK 6.1
25 PENNSYLVANIA 6.1
24 MASSACHUSETTS 5.9
23 COLORADO 5.8
19 ARKANSAS 5.7
19 IDAHO 5.7
19 TEXAS 5.7
19 VERMONT 5.7
17 DELAWARE 5.6
17 WISCONSIN 5.6
15 LOUISIANA 5.3
15 MARYLAND 5.3
12 HAWAII 4.9
12 KANSAS 4.9
12 MONTANA 4.9
11 VIRGINIA 4.8
10 OKLAHOMA 4.7
9 WEST VIRGINIA 4.6
6 IOWA 4.3
6 NEW HAMPSHIRE 4.3
6 NEW MEXICO 4.3
4 NEBRASKA 3.7
4 UTAH 3.7
3 SOUTH DAKOTA 3.4
2 NORTH DAKOTA 3.3
1 WYOMING - Reply to this comment
- California is the prototypical failed socialist experiment. Who cares if California goes bankrupt? I don''t. I would NEVER live there, and I would NEVER, NEVER do business there!
Message to Obama and the Dems:
Heed the warning of California! Don''t destroy the rest of the USA with your socialist programs! - Reply to this comment
- I don''t know if it''s still an idea being kicked around, but several years ago northern California wanted to split & separate from the south part of the state because the vast majority of tax revenue was going to southern Cal. and the people up north were getting very little state services & projects compared to So. Cal. So. Cal also wanted to built aqueducts to suck all the water from Nor. Cal & ship it south. I bet they are kicking themselves for do pursuing that.
- Reply to this comment
- Sell California to Mexico....we accept oil,pesos,services....
--------------------------------------------------------------------------------
Posted by Hacker1100 at 06:55 PM : Feb 17, 2009
We kicked you out, didn''t we? I know it''s hard, but time will heal all wounds. - Reply to this comment
- If people with wealth are forced to share it when they don''''t want to, what is to keep them from shutting down their money making operations and continuing to produce?
--------------------
Posted by leeanna58
They won''t, They won''t cut off the hand that feeds them. For them an obscene amount of money is best but great money is better than no money. - Reply to this comment
- I''''d move in a minute if I could get my husband to.
--------------------------------------------------------------------------------
Posted by joule18 at 05:45 PM : Feb 17, 2009
I wouldn''t. I love California, for all its faults. We are too liberal overall, but I would rather be too liberal than too conservative. Moderate would be best, but that''s a tough one to achieve. - Reply to this comment
- And what about all the guys languishing in jail for marijuana possession. Imagine the taxes they''''d be paying, instead of soaking up, if American society had it''''s priorities straight (lets let rapists go, and lock up tokers).
Posted by ubrew12 at 06:40 PM : Feb 17, 2009
Sounds like yur a little sensitive about the marijuana laws-How much were ya holding when ya got busted? - Reply to this comment
- Angry californians voted for ''3 strikes and your out'', then started incarcerating people for life who''s last felony was stealing video''s from the video-store (required BY LAW). Cost of incarceration? $100,000 a year, at least. And what about all the guys languishing in jail for marijuana possession. Imagine the taxes they''d be paying, instead of soaking up, if American society had it''s priorities straight (lets let rapists go, and lock up tokers).
To some extent, CA deserves this mess. Like American society in general, it wants to LOOK and TALK tough, it just doesn''t want to pay for it. - Reply to this comment
Author Thomas Friedman on Obama's Afghanistan plan and the war on terror.




