These Budget Cuts Affect All of Us

February 13, 2009
Sketchy Budget Details Slowly Emerge
The following summary is based on the best available, but very limited,
information on the components
of the budget framework that will be voted on by the Legislature. Much of
this material comes from a
document dated February 9; the details may have changed over the past four
days. As of mid-day Friday,
February 13, votes on a spending plan and related legislation are scheduled
for Saturday in both the
Senate and the Assembly. No documents have been made available to the
public; however, documents
identifying major proposed spending reductions and tax increases have
circulated through Capitol
circles.
The proposed budget framework identifies a total of $41.0 billion in “
solutions” – $26.3 billion to
balance the 2009-10 budget and $14.8 billion to close the gap projected for
the remainder of 2008-09.
The proposed framework includes $14.1 billion in spending reductions, $12.8
billion in new and
increased taxes, and $11.5 billion in new borrowing and various accounting
gimmicks. Additional cuts
totaling $947.7 million and an additional tax increase of $1.6 billion would
be triggered if California
does not receive a specified level of federal funding from the economic
recovery plan pending in
Congress.
Budget documents assume the state will receive $5.0 billion from the sale of
bonds backed by lottery
proceeds in 2009-10. The budget framework assumes voters will approve
changes in the allocation of
lottery proceeds in a measure that would appear in a special election. The
proposed framework also
assumes that the state will raise $6.1 billion from the sale of Revenue
Anticipation Warrants. Finally,
the framework assumes $432.6 million in internal borrowing from several
special funds.
Proposed Cap Could Severely Limit Future Spending
The budget framework includes a new limit on state spending. While details
of the proposed cap have
not been made available to the public, it appears that the cap would limit
the annual growth in state
spending to the average of revenue growth over the prior 10 years. In
essence, this formula would tie
future years’ spending to a level established during what is perhaps the
worst budget crisis in the
state’s history. A preliminary CBP analysis estimates that state General
Fund spending could be limited
to approximately $21 billion below the Governor’s baseline spending level in
2012-13 – a level that
assumes all of the cuts proposed by the Governor as part of the plan he
released on New Year’s Eve to
balance the 2008-09 and 2009-10 budgets. In other words, some $21 billion in
cuts above and beyond
those currently under consideration could be required under the proposed cap.
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Tax Cuts Will Worsen Future Budget Gaps
The budget framework includes three significant tax breaks that together
will reduce future revenues by at least $1
billion per year and potentially significantly more. The first of the
proposed changes would give corporations the
option to choose between two different formulas for determining how much of
their income would be subject to tax
in California. Press reports suggest that this would cost $700 million or
more per year in lost revenues. The second
would create a two-year hiring credit for businesses. Past history suggests
that such credits do not lead to new
employment and that they are subject to considerable abuse. A similar
proposal was dropped from the federal
economic recovery plan in response to concerns over cost and lack of
effectiveness. The third proposal provides $100
million per year for five years for a new tax credit for movie and
television production.
Budget Agreement Would Include Up to $14.4 Billion in New Tax Revenues
The proposed budget agreement would raise up to $14.4 billion in new tax
revenues. These tax provisions would be
in effect for four or five years – reports vary – if voters approve a
proposed limit on state spending, which the
Legislature would put on the ballot as part of the budget package. If voters
reject the cap, the new taxes would be in
effect for two years. Specifically, the proposed agreement:
 Increases the state sales tax rate by 1 percentage point, raising an
estimated $1.203 billion in 2008-09 and
$4.553 billion in 2009-10.
 Increases the Vehicle License Fee (VLF) rate from 0.65 percent to 1.15
percent, raising $202.9 million in 2008-09
and $1.715 billion in 2009-10. A portion of the increased revenues from this
provision would be used to fund
local law enforcement programs.
 Imposes a surtax equal to 2.5 percent of personal income tax liability,
raising an estimated $1.627 billion in
2009-10.
 Reduces the size of the dependent credit claimed by personal income
taxpayers, raising an estimated $1.440
billion in 2009-10.
 Increases the gasoline tax by 12 cents per gallon, raising $250 million in
2008-09 and $1.812 billion in 2009-10.
Budget Documents Identify Up to $15.1 Billion in Spending Cuts
The limited available documentation on the proposed budget agreement
identifies the following major spending
proposals:
 $8.6 billion in cuts to programs covered by the Proposition 98 guarantee –
$5.6 billion in 2008-09 and $3.0 billion
in 2009-10.
 $710.8 million in additional savings attributable to funding the
Proposition 98 guarantee at the minimum level
required in 2008-09 and 2009-10.
 A redirection of state First 5 Commission balances, as well as 50 percent
of additional First 5 state and county
funds, to support children’s programs for state savings of $608.0 million in
2009-10. This fund shift would remain
in effect through 2013-14 and would require voter approval.
 Diversion of funds raised by Proposition 63 of 2004 to support Early and
Periodic Screening, Diagnosis, and
Treatment (EPSDT) programs for state savings of $226.7 million in 2009-10.
Available budget documents suggest
that this fund shift, which would require voter approval, would remain in
effect through 2010-11.
 Avoidance of the pass through – beginning in an as-yet-unspecified month –
of the 2009 federal SSI COLA in the
SSI/SSP Program for state savings of $79.8 million in 2008-09 and $487.3
million in 2009-10. Available budget
documents are not clear whether these savings assume not passing through the
2010 federal SSI COLA as well.
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The proposed budget framework also would suspend the June 2010 state COLA in
the SSI/SSP Program for onemonth
savings of $27.0 million in 2009-10 and annual savings of more than $300
million beginning in 2010-11.
 Suspension of the July 2009 COLA for CalWORKs grants for savings of $79.1
million in 2009-10 and suspension
of funding for the Pay for Performance Program for additional savings of
$40.0 million in 2009-10. This program
was intended to provide additional funding to counties that achieve certain
CalWORKs outcomes; however,
funds have not been provided since the program was created in 2005-06.
 A cut of funding for Regional Center service provider payments and
operations of 3 percent for savings of $24.6
million in 2008-09 and $60.2 million in 2009-10 and a further reduction of
7.1 percent in service provider
payments for additional savings of $100.0 million in 2009-10.
 Suspension of the July 2009 COLA for county operation of the Medi-Cal
Program for savings of $24.7 million in
2009-10.
 Delay of a child-support automation project for savings of $36.1 million
in 2009-10.
 Reductions in support for the University of California, California State
University, and Hastings College of Law
totaling $264.4 million – $132.2 million in 2008-09 and $132.2 million in
2009-10.
 A reduction of $427.6 million in 2009-10 relative to the level of support
for UC and CSU outlined in the Higher
Education Compact.
 A $95.7 million reduction in funding for higher education retirement
contributions in 2009-10.
 A $375.8 million reduction in state employee compensation costs in 2008-09
and $1.024 billion in 2009-10.
 A $6.5 million 2008-09 reduction and a $32.0 million 2009-10 reduction in
funding for property tax assistance for
seniors and blind or disabled Californians available through the Senior
Citizens’ Property Tax Deferral Program.
 Continuation of “one-time” reductions and fund shifts for the judicial
branch for savings of $109.3 million in
2009-10.
 Elimination of cost-of-living adjustments for trial courts and the state
judiciary for savings of $36.7 million in
2009-10.
 Elimination of the price increase for state agencies per the current
projection of 0.4 percent inflation for savings
of $136.0 million in 2009-10.
 A 10 percent reduction in support for the federal-court-appointed receiver’
s inmate medical services budget for
savings of $180.8 million in 2009-10.
 A delay in the implementation of the Guardianship and Conservatorship
Reform Act of 2006 for savings of $17.4
million in 2009-10.
 A redirection of tribal gaming revenues from transportation to the General
Fund for savings of $100.8 million in
each of 2008-09 and 2009-10.
 A suspension of state funding for local transit agencies for five years
for savings of $153.2 million in 2008-09
and $306.4 million in 2009-10.
Additional Cuts and an Additional Tax Increase Would Be Triggered if
California’s Share of Federal Economic Recovery
Funding Does Not Meet a Certain Threshold
Additional cuts totaling $947.7 million and an additional tax increase of
$1.6 billion would be triggered if California
does not receive a specified level of federal funding from the economic
recovery plan pending in Congress. If federal
funding does not meet the threshold, the proposed budget framework would
require the state to:
 Impose an additional 2.5 percent personal income tax surtax. This surtax
would be in addition to the one
included in the proposed package. The additional tax would raise $1.6
billion in 2009-10.
 Reduce SSI/SSP grants by 2.3 percent for a cut of $267.8 million.
Individual recipients would lose $20 per month
and couples would lose $35 per month.
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 Eliminate certain Medi-Cal optional benefits and reduce reimbursement
rates for public hospitals by 10 percent
for savings of $183.6 million.
 Reduce CalWORKs grants by 4 percent for a cut of $146.9 million.
 Cap the state’s contribution toward the wages of In-Home Supportive
Services (IHSS) workers at $9.50 per hour
plus $0.60 for benefits and require some IHSS recipients to pay a larger
share of the cost of the services they
receive for combined savings of $78.0 million.
 Reduce funding for the University of California and the California State
University system by an additional $100
million.
 Cut judicial branch funding by $100 million and reject a proposal to
create new judgeships for additional savings
of $71.4 million.

Understanding these times

These times are really hard. When you have to comprehend a 3% reduction in your profits for your business, and at the same time lose your health insurance plan, well....you begin to understand what really hard times means. It means we either have to roll with the punches or all of us (that means everyone!) take a stand one way or another. What I mean by this is do we take the status quo, where all the systems around us fail, and we are left without a penny in our pocket, or a job that will make us successful, or do we come together as a society and hold our representatives accountable for everything that they have promised us. We are supposed to be California...the defining icon of the west coast, but we as a society are complacent. I recently saw an old aquainence who was complaining about all the cuts and the proposed budget cuts. I knew in my head that he was feeling the hard times too, but then he wouldn't really do anything. He wouldnt go the extra mile and take a stand. We need to chain ourselves in front of the capital and say that minorities may not be ignored and that the budget cuts will not fall on our shouldrers. If someone calls me tomorrow and says, "Nick, Im ready to go down to Sacramento and get arrested for protecting our rights" I will be on the next train to Sac. For those of you who read this, and for those of you who don't, this is the worst time in the states history. This is the longest we've ever gone without passing a budget. It's not just happening at a local level, our friend Tom Dashal, who has always stood up for PWD and minorities, he was ousted from the Obama Administration by the good-o-IRS. 120,000 to 3,000 is nothing to a person who makes so much money. This was a publicity blitz that made the Republicans use their influence with the popular media to overplay something that was just a mere mistake. It could have happened to any one of us. So I ask you to engage with me on a trip to the capital to regain our rights. Yes, you can email me at daretodream94704@yahoo.com and I will happily join you in our fight to save our state from people really dying, and people going broke, because our government doesn't have a clue. Staying alive....

Nick

James Taylor - You've Got a Friend

When youre down and troubled
And you need a helping hand
And nothing, whoa nothing is going right.
Close your eyes and think of me
And soon I will be there
To brighten up even your darkest nights.

You just call out my name,
And you know whereever I am
Ill come running, oh yeah baby
To see you again.
Winter, spring, summer, or fall,
All you have to do is call
And Ill be there, yeah, yeah, yeah.
Youve got a friend.

If the sky above you
Should turn dark and full of clouds
And that old north wind should begin to blow
Keep your head together and call my name out loud
And soon I will be knocking upon your door.
You just call out my name and you know where ever I am
Ill come running to see you again.
Winter, spring, summer or fall
All you got to do is call
And Ill be there, yeah, yeah, yeah.

Hey, aint it good to know that youve got a friend?
People can be so cold.
Theyll hurt you and desert you.
Well theyll take your soul if you let them.
Oh yeah, but dont you let them.

You just call out my name and you know wherever I am
Ill come running to see you again.
Oh babe, dont you know that,
Winter spring summer or fall,
Hey now, all youve got to do is call.
Lord, Ill be there, yes I will.
Youve got a friend.
Youve got a friend.
Aint it good to know youve got a friend.
Aint it good to know youve got a friend.
Youve got a friend.

New Spasms and searching for an answer

Every day for about the past two months I have been having more and more muscle spasms. They do not hurt but to explain it would be to say it like this:

If you have a board behind your leg and the board is padded ( thank goodness), your body pushes constantly. Your heal against the back of the board and the muscles are all pulling.

Does this have to do with stress? Does this have to do with neurology and those forgotten adults who need treatment and not the cure? I hope that someone who reads this may have ideas. I dont care what part of the world youre in or who you are, if you have had experience with CP and muscle spasms, I am open to all ideas.

Nick

Thoughts

My thoughts wander through parallels of great distress. My body is finding new ways of spasming that make every day living a lot more complex. You see, I must stay distracted my mind on other things- work, attendant issues, etc. But I feel like society expects more from people like me. I have to break down a lot of stereotypes- good, bad, ugly, true and false, about my disability and my very existence. I like to believe that I understand people enough to realize that their ignorance is their loss, and none of my business. I go out of my way to educate these people that folks with disabilities are just people who happen to have impairments that effect their ability to empower or destroy people with disabilities. They don't understand that we are just like everyone else, but are we really? I think that there should be a poll: " but are we really?" How we feel, our actions, our ability to live, our ability to have employment and education; it means a lot for people with disabilities to become overachievers and get support in achieving what everyone should have and what everyone wants to have. A chance, a real and honest chance. And I think that for those who sit around and choose to only exist, or don't exist, it poses a real problem. It buys into a stereotype that people with disabilities are just people who use benefits and don't achieve anything throughout their lives. It is very frustrating that only 75% of people with disabilities are unemployed, and they want to be employed. But people should not stop trying. We have to keep going. And challenge our minds. I am really frustrated for some unknown reason.

Obama's Agenda

One can only imagine the wieght on Obama's shoulders as he enters the White House. His agenda is pretty Liberal and he needs every bit of our support. He is going to get a lot of crap from Congress, and I doubt he will accomplish much in his first 4 years, if he can win a 2nd term, he won the war, and his agenda will become their agenda. He will win over his non-supporters, and either they will hit the road or jump on board. I hope he can clean up the mess of 8 years of George W. Bush. In terms of world politics and international affairs, he has a lot to work on. He has to do something about Iran. And at the same time he has to get Gaza and Isreal to come to some conclusion. Like thats really gonna happen. And there's always our country. The high crime rate, the lack of jobs, the poor economy, the lack of health insurance for most Americans, the minority and all their issues, education which is failing this country...he needs to also end the drug war and illegal immigration. Oh my god, he has so much to do! I hope he is for real.

Breaking Up With Destiny

Word Count: 505

Breaking Up With Destiny
By
Nicholas Feldman

It started the way any old relationship would, the attraction, the wanting to do things together, and feeling passion. This went on for a few years with many twists and turns, and upside downs. Then, one day I had an epiphany.

Destiny wasn’t who I thought she was. The activities that Destiny and I used to find cool were no longer. Destiny wanted the world to show her the way, and protect her from the harsh realities. I see these realities every day in my business, and in life. They are the fights that make people real. Of course all of these events crescendo with a doll that almost resembles some sort of mythical character pulling two people together, hearing it all, and now becoming a grumpy old man with nothing to do but sleep all day and listen to Destiny. The creature is tired of being the silent shrink, and doesn’t want to hear about any more busy talk, or BS.

When I came home and I looked at Destiny one day, I thought I wanted to marry Destiny. Then just some time ago, I walked in the door and it was quite different. I am a power monger hungry for nothing but success, and a comfortable lifestyle. This is the opposite of Destiny.

Destiny is a very happy-go-lucky, non confrontational artist who wants to teach children, and doesn’t care at all about money. Our friends who were there all disappeared years ago. New friends were hard to acquire, and the TV show Friends did not make up for it. When I get angry, I yell and scream. When Destiny yells and screams, it turns into loud childlike wails that only a pedophile might enjoy. Destiny used to get into it and really focus all their attention on the wailing. I really could care less, and would much rather have a more practical conversation.

It would be neglectful of me not to mention the fact that both of us have physical disabilities and a case of identity theft brought on a lot of our final arguments. These arguments had a lot to do with people who helped us out in our daily lives.

Destiny and I both have Cerebral Palsy: a neurological condition that affects speech, motor control of the limbs, and can cause mental retardation, deafness and blindness. Neither of our mental faculties are affected by our physical disabilities. Destiny uses a power wheelchair, and a synthesized voice, with some use of her arms and legs. The person reading this should also know that I require significantly more care than Destiny. We are now just the so-called “roommates,” both trying to find our way out of this. It has been six years, with no regrets, but lots of changes. I get more reflective than I do sad. That’s just how I am. I think to myself that no arguments are necessary, no words can be said, and it’s just time to move on…