Cuts Put Calif. Programs On Life Support

Facing $24 Billion Shortfall, State Weighs Drastic Cuts To Health And Welfare Services

(CBS)  Working families who can't afford health insurance fill the waiting room at the Eisner Pediatric Medical Center. Their medical care is paid through "Healthy Families," a program that serves about a million children state-wide - that may be cut to balance California's budget, reports CBS News correspondent Sandra Hughes.

Patricia Munoz's children may now be uninsured.

"I don't know if I would have enough to take everybody to the doctor if it came to that because sometimes one gets sick, the next one gets sick, it's a domino effect," Munoz said. "They go down, down, down."

California is facing an almost $24 billion shortfall. Eliminating "Healthy Families" could save almost $64 million. Other drastic cuts being considered include shutting down the state's main welfare program which would save $1.3 billion, and a 5 percent pay cut for all state employees.

"There is really no way out of this fix," said Jack Pitney, a professor of American Politics at Claremont McKenna College. "There's going to be very unpopular cuts or very unpopular tax increases or some combination of both."

The state's poison control center may also be shut down. The 900 calls it gets every day will go unanswered.

"That number will translate into ER visits and ambulance runs and overburdening our 911 system," said Tom Kearney from state's poison control center.

While the cuts are traumatic, they are necessary. The recession has hit California harder than many states because it relies so heavily on personal income tax to fund the government.

Balancing the budget here is a nightmare. Voters mandate through ballot initiatives, spending and cuts and the legislature can't pass a budget without a two-thirds majority.

But it's not just California's pain

"The economy of California is more than 10 percent of the economy of the country," said Bob Stern of the Center for Governmental Studies. "As California's economy drops the rest of the country is going to feel it."

Back at the Eisner Pediatric Clinic, they're bracing for the worst.

"I don't want to be the guy to stand here and make a prediction about how many people will die or whether people will die," said Carl Coan, the medical center's executive director. "But intuitively, you have to wonder, as people get sicker, what is going to happen?"

It's a question no one seems able to answer - while the recession rages on.

[dwilber971]

The reason the poor working famillies are suffering is that the Republicans in the legislature refuse to increase taxes on the people who can afford it. They prefer to redistribute from the poor to the rich instead of the way it's supposed to be. Government redistributes money. It's just part of what it does. You just want it to be done fairly.

[cydygitt1]

He refuses to listen to the people who predicted this catastrophe like Lyndon Larouche who has tried to warn him over and over again.

Posted by whitemale08
-------------------------------

I don't blame him for not listening to a comically paranoid conspiracy theorist with absolutely no formal economic training whatsoever, or any college education at all.

Actually, larouche sounds like the advisors of the bushies, big egotists but lacking even common sense, that gave us the bush/cheney great recession.

Appears as if some of the companies you continuously rail against, want to start paying back the taxpayers for the bailout money:


JPMorgan, AmEx Seek To Pay Back Bailout
Financial Companies Launch Public Stock Offerings To Prove They No Longer Need Taxpayer Aid

(AP) JPMorgan Chase & Co. and American Express Co. are the latest recipients of federal bailout funds to launch public stock offerings aimed at proving to the Treasury Department that they can raise capital on their own and don't need to keep taxpayer aid.

JPMorgan said Monday it plans to raise $5 billion through a common stock offering as it seeks to repay the $25 billion that the bank was awarded under the government's Troubled Asset Relief Program. American Express also said Monday it will sell $500 million in stock in a public offering to help pay back part of the $3.4 billion in TARP funds it has received.

The Federal Reserve on Monday laid out rules for how the 19 largest financial institutions can wind down their reliance on government support. The banks, which have assets of more than $100 billion, were subjected to "stress tests" to determine their financial strength. They have received a total of $228.6 billion from Treasury's $700 billion financial bailout package.

[number1GI]

Pretty soon I won't have any money because the California politicians take it all and give it to the damned illegals Then where are they going to get more money to give to the damned illegals? HUH?

[whitemale08]

Please, just hop on a plane to D.C. and tell President Obama exactly how to fix our worst economic nightmare since the Great Depression that took decades to create.

Then, hop on another plane to California, and show arnold how to fix the CA bankruptcy!
Posted by cydygitt1 at 5:23 PM : May 31, 2009

It would do no good because President Obama insists on listening to idiots like Larry Summers and Peter Orzag.

He refuses to listen to the people who predicted this catastrophe like Lyndon Larouche who has tried to warn him over and over again.

CALL CONGRESS AND DEMAND AN END TO ALL BAILOUTS AND PUT THE ENTIRE FEDERAL RESERVE SYSTEM INTO RECEIVERSHIP AND BANKRUPTCY RE-ORGANIZATION!

[cydygitt1]

Bottom line is..state is bankrupt...services and jobs will be cut to balance the budget...blaming other people will not solve the problem...the poor and middle class will suffer the most....fact.
Posted by mer16 at 10:54 PM : May 31, 2009
===================================
IF you are attempting to say Mr. Schwartenegger or legislators are NOT responsible for this budget crisis---you are WRONG!

Bottomline: THEY are responsible for the budget planning, if there's a $24 billion dollar deficit, THEY are responsible for it! Blame---can and should---be properly assigned! THEY need to do their jobs! IF they were, then you wouldn't have this deficit!
Posted by stn_sage
-------------------------

Sorry, but it is a much more complex problem than what you portray, and has been going on for years, much like the federal government's deficit spending with much less revenue coming in particularly due to the economic tsunami. It is not only the governor and legislators responsible for this debacle, but many other factors that have been reasonably discussed here without you pointing fingers at the few you wish to blame.

It certainly seems that warren buffet had it correct back in 2003, by proposing a re-write of Prop 13 that has stagnated property taxes for many, and cut an estimated $528 Billion in state revenue over its 30 year existence. By just re-writing Prop 13 in order to recoup only half of the lost revenue, California would have been financially sound in this recession.

If we had addressed the health care debacle back in the 90's, instead of watching the for-profit insurance companies rape and plunder Americans, California would have saved billions of dollars per year spent on health care for just state employees. Arnold vetoed the one proposed state health care plan for all, which like the federal HR676, would finally address the spiraling health care costs we have been enduring for years, while adding billions to the pockets of the for-profit insurance companies.

It's not only spending that is the problem here like on the federal level, but having efficient government and not choking-off revenue with "feel-good" schemes like Prop 13 or taxcuts for the wealthiest, and getting health care under control with SP-UHC.

[american_11-2009]

The problem with the Democrats Socialism is that eventually you run out of other peoples money!

[cydygitt1]

We shouldn't forget that CA pays into the Federal gov't a dollar, and gets back from the Federal gov't 60 cents, while other states (mostly Red states) get back a buck-fifty to $2.50.

That may be a big reason CA is bankrupt.
Posted by ubrew12
------------------------

Good point......and certainly debunks one poster ignorantly saying that all the wealthy taxpayers had left the state of CA.

[american_11-2009]

California the Golden state, is fast becoming the poster child for an bankrupt third world State!

An unholy alliance of Socialist Democrat politicians, Unions, and Illegal Aliens supporters are feasting at the trough of tax payers paid benefits while taxing & regulating business and the tax paying public into poverty.

The pandering of Left Wing Democrat Politicians to their constituency of Illegal Aliens, open border supporters, and unions are driving business and citizens to other states & countries, while leaving the parasites & welfare leeches in an increasing bankrupt, crime ridden, dysfunctional state!

For years California has ignored economics 101 and imported poverty, Criminals and uneducated Peons from Mexico, which increased Medical, Welfare, Crime, Prison, etc. & adding a estimated 16 billion per year to Calif. State expense to provide for the invading horde of Illegal Aliens while exporting business and educated working tax payers.

Like all Socialist & Marxist States the results have been a astronomical increase in social welfare cost, schooling, prison cost etc. and a lowing of living standards, tax receipts & finally bankruptcy.

Failure to abide by our Constitution against invasion & enforce our Immigration laws and constraints on wages and benefits for public employees will result in turning the Golden State into MexiCalif and the end of the California dream!

The policies of Obama and Wash. DC Democrats are intent on following Calif. policies and are resulting in the same creeping socialist process across American.

Amnesty & Citizenship as a reward for their invasion of the USA, will result in the rest of the USA turned into a Spanish speaking third world cesspool, modeled on Mexico and follow California into a polluted, over populated, Spanish speaking third world Nation of Crime, Corruption, Poverty, & Misery!

This will result in a population depending on Welfare and the Democrat party, thus assuring the lock on power for the Socialist Democrat party of the United States of Mexico!

[SusanStoHelit]

The low level jobs - the ones that students do, the ones that high school dropouts do, the ones that high school graduates do, the blue collar jobs like construction, meatcutting, etc. that have supported many a whole family in the past - they are lost to illegals, who work cheap because they live illegally - no need to buy car insurance, follow housing laws, etc.

We could cut our welfare rolls so much, if we enforced our laws against hiring illegals - go after the companies.

[stn_sage]

Bottom line is..state is bankrupt...services and jobs will be cut to balance the budget...blaming other people will not solve the problem...the poor and middle class will suffer the most....fact.
Posted by mer16 at 10:54 PM : May 31, 2009
===================================
IF you are attempting to say Mr. Schwartenegger or legislators are NOT responsible for this budget crisis---you are WRONG!

Bottomline: THEY are responsible for the budget planning, if there's a $24 billion dollar deficit, THEY are responsible for it! Blame---can and should---be properly assigned! THEY need to do their jobs! IF they were, then you wouldn't have this deficit!

[mer16]

Bottom line is..state is bankrupt...services and jobs will be cut to balance the budget...blaming other people will not solve the problem...the poor and middle class will suffer the most....fact.

[stn_sage]

The citizens of California need to decide whether they want a governor that they personally "like"---or, one that can work with the legislature, make "tough" decisions, balance a budget, and get the job done!

Until they decide this fundamental question---they are going to continue to experience "economic chaos"! They should have figured out by this time---that they can't have it both ways! Obviously, they have not!

No bailouts for California!

[GaryLouisSmith]

Since neither the people through referenda nor the legislature are able to bring the state back from the abyss, it is time, just as with GM, to go into bankruptcy and let the judges decide. I see no other way. Except to let it revert back to Mexico and let them take care of it.

[Ceres6]

If you kick out the illegals plenty of jobs will be available. It's easier for people to sit at home on welfare than to actually go out and perform hard labor! Laziness is ruining this country!
Posted by manny781 at 6:24 PM : May 31, 2009

For all the macho men and pinheads of Caifornia, the patriot thing to do is to blame the illegal aliens. If all the executives in California returned the megabonus they received for their supernatural divine skills, and if the crooks in Wall Street returned the money they stole from the people of California, the Golden State would be today in excellent financial shape. Only racist individuals, those who also have a deep hatred for Hispanics, feel great blaming those humble people that work hard por the minimum wage, and cannot defend themselves. Before blaming the illegal aliens, those people who want to do a honest critism, should read those reports that show how much the illegal aliens contribute to the California economy and how much they receive in services. I am not saying that illegal aliens have the right to come here uninvited, as if this was their country, but they should not be blamed for something they are not responsible for.

[usa3world]

If California Governor Arnold Schwarzenegger had passed California State Senator Sheila Kuehl SB 840 instead of vetoing it then things wouldn't be so grim for them now!!!

http://www.healthcareforall.org/kuehl.html

[reality42]

Thank you.....I agree that sticking to the facts instead of vitriolic name calling and repeating talking heads and pundits paid to divide America will help us much more. I'm still amazed at how many off-topic comments can be seen in each thread, and usually by someone with an agenda, trying desperately to re-write history or just attack.

I'm just glad I left CA in the mid-80's, before it got completely out of hand!
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Don't worry the tarp money is working right now manipulating the stock market to runi it up and then the Banks with the trap money will drop the stocks hard and the suckers will be holding the bag again like ever other time. Plus they will be buying hard assets out side of USA because they see the writing on the wall the US dollar is worthless paper and the USA still see strom clouds ahead so better to have the other countrys holding the worthless paper as the big American corperation hold the solid hard assest.

there is some hard facts for you

[John_Merritt]

It is sad no matter the reason for the problems we face as a nation and a state. And for those who say this a partisan problem, it is definitely bi-partisan. Let me remind you who is FAR outspending the Republicans. Don;t tell me that you are cleaning up their mess, because the Democrats helped sweep the garbage underneath the carpet and out of the public eye. This is not a Dem. vs Rep. problem. It is a us problem as in US problem.

Health care expenditures have added to the morass of debt this nation has incurred and yes immigration has been problematic. And yes Americans have gotten lazy and rested on our laurels. And yes these problems will be shared ones until WE ALL come up solutions. Quit badgering each and start talking and compromising with each other PLEASE.

This country is only as good AS THE SUM OF ITS PARTS. Yes, including the immigrants that helped to feed us each day if you have not forgotten. I have rarely seen any white or black Americans working in the fields picking our food to feed our children. When was the last time you drove through Bakersfied and beyond and seen caucasian or black people working in the fields. We should be thankful for everybody's help.

Lets stop pointing fingers and start linking fingers, OK?

[eroosevelt08]

I wish President Bush and VP Cheney had saved for a rainy day instead of squandering the surplus that was there when President Clinton left office. Iraq, Katrina, GM, unemployment, recession, loss of social security, starvation and death because of loss of critical care resources.. . .

I will never ever vote for any Republican. All that waste and arrogance makes me sick at heart.

[ubrew12]

We shouldn't forget that CA pays into the Federal gov't a dollar, and gets back from the Federal gov't 60 cents, while other states (mostly Red states) get back a buck-fifty to $2.50.

That may be a big reason CA is bankrupt.

[sjc_1]

"..in most cases, have earned it..."

How have they earned it? Can they walk on water? Have they cured cancer or developed fusion energy? Without making a significant contribution to humankind, they TOOK it because the could, they do not deserve it unless everyone says that they do.

"...that employ people..."

They employ people to make them rich because they HAVE to. They would just as soon employ no one, It cuts into profits and they are a pain in the behind. They do not exist to employ people!