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California Faces Massive Cuts If Taxes Fail

Alternative Budget Unveiled

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(credit: AP)

(credit: AP)

From On The Money

Features

By Mike Luery

SACRAMENTO (CBS13) – A shocker at the Capitol today, where a new report spells out for the first time what California might look like if the Governor’s tax extension proposal fails at the ballot — assuming it even gets there.

The potential cuts affect every Californian. They are painful, but could be necessary if the tax extension is shot down either by voters or the California legislature. Here’s what California could look like according to the non-partisan Legislative Analyst’s Office:

Starting with education, the potential cuts include:

•    Eliminating class size reductions for K-3 for a savings of $1.2 billion
•    Requiring all Kindergartners to be 5 years old at enrollment ($700 million)
•    Raising community college fees from $26 to $66 a unit ($170 million)
•    Hiking student tuition at University of California and Cal State University ($270 million)
•    Reducing enrollment at Cal State University ($124 million)

Government workers would also be directly affected under the LAO’s proposal:

•    9% pay cut for state workers ($700 million)
•    Cutting State contributions to employee health care ($330 million)
•    Two furlough days/month for court employees ($130 million)

The LAO’s alternative plan also calls for potential big changes to the environment including:

•    Allowing oil drilling off California coast ($100 million)
•    New fee on rural homeowners for wildfires ($300 million)

Altogether the plan presents about $13 billion in alternatives, if the tax extension goes down to defeat. Governor Brown has not spelled out any of these options – but Senate Democrats unveiled them today to let voters know what’s at stake in the June election on taxes – if there is an election at all.

If you have a story idea for On The Money, send us an e-mail to onthemoney@kovr.com. You can also follow On The Money stories in progress via Twitter at http://twitter.com/#!/mikeluery.

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  • Laurie

    It is time to brace for impact. No tax increases. Stop taking my money!

  • Joe Momma

    Bring the pain, I am already being taxed coming and going.

  • Carl S

    Sadly, it is the best plan for the state. We have to live within ours means.

  • Had my fill…

    What happened to cuts in health care to illegals, cuts in health care to inmates. More and different areas need to be looked at. Those recommended are not the only high dollar cuts that need to be looked at.

  • Don

    Typical Democrat scare tactics. Cut taxes now!

  • RamboCat Garcia

    If the extension of the tax increases reaches the ballot, I might be willing to vote for it but ONLY if the legislature is successful in reforming the pension system and the retiree health system before the electiion. And I mean real reform, on the order of several billion dollars per year, much of it immediate savings, not 30 years from now! Also, we have to reduce prison costs. I understand we are paying about $56,000 per year per inmate! This is ridiculous.

  • Steve C

    So a SacBee article has home invasion/murdering gang members getting life @ 50,000 per year and this article has the state cutting programs for children? Does anyone else see a problem here?

  • Steve C

    Edit to that comment….We dont need to elect politicians who make promises. The public needs to demand changes in the punishment for crimes!

  • Linda

    Bring on the cuts. NO TAX INCREASE!!

  • Fed up in sac

    i think that taking things away from the elderly and disabled sucks they like living in there homes and the Adult Day Care Center give the disabled a sense of worthiness the hell with the prison inmates they put themselves there and the lawmakers in this state make way to much money for what they do which is nothing.The people who are disabled did not ask for there injury to happen and getting old is just a fact of life.So Govenor Brown if you have a heart you should think about this cause you will be old to and need help to function one day .And these people on SSI should have to pass a drug test to get there money cause close to 100% of the people on it are drug addicts and they are only using the money to fund there drug and alcohol habits.

  • Uncle Bob

    Until the State Legislature STOPS spending money they don’t have … tax increases, spending cuts … nothing will matter. They all need to suck it up and attack the issue … by first no longer spednign money not there … and second, either raise the taxes to cover their spending OR cut spending as deep as it has to but cut. This isn’t brain surgery.

    Also, anyone else notice the repeated them of age 5 fo entering school and the so called “savings”? Think about it … what happens to the kids who were only 4 the first year it’s enacted … um, they become part of the next year’s class. So any savings, is a one year option, the kids prevented from entering early, just become part of the next year’s class. Sounds about the same as selling Stae owned properties only to lease them back …

  • fed up !

    no more taxes….bring on the cuts and deal with it then with no more money coming from the tax payers to be spent foolishly. You get enough of my check. Make it work .

  • ryder

    No. If the ‘programs for children’ you cite were keeping them out of trouble, you wouldn’t be able to use the ‘home invasion/murdering gang members’ as an example. Would you? Your programs are in place, and they haven’t done jack to curtail the nonsense. On the other hand, their parents need a ‘program’ before they have offspring, and then they need to be licensed to have kids once they pass the ‘program.’ That I would support with taxes, but it would never happen because you would vote it down.

  • smith

    WHY … WHY ARE WE NOT SEEING CUTS IN THE LEGISLATIVE BRANCH? They just gave staff raises… .WHAT THE HELL IS THAT ALL ABOUT? Why do they keep the cars…. the use of the State Credit Card(s),….

  • Matthew Parvin

    Why don’t they just make those that get put in jail and in prison, pay for their own incarciration?

  • Stacy Kehret

    I hope you realize that they are asking to extend an EXISTING tax. As a teacher and parent, I dread seeing larger classrooms. From what I heard, prison growth is based on 4th grade reading scores…if they can’t read because they can’t get the help they need, the cycle won’t stop. I don’t know what the answer is, I just know that I am willing to maintain my level of taxes to keep schools funded. I agree with the comments about inmate expenses…I just hate to take away supports for kids who don’t have structure at home.

  • street_smart

    Outsource prisoners to other Countries like they do with IT. I’m sure they can take care of the prisoners for waaaay cheaper there.

  • Zzzzz

    Sadly,school is the only structure for far too many.

  • Pat

    I noticed there was nothing said about the legislative members giving up their stipends, state issued credit cards, state paid cars, and state paid gas. All of these perks are paid by the taxpayers.

  • Alana Reeves

    Being a current student at CSUS and a mother of two, the tuition increase is going to hurt, The last two semesters our tution was increased almost $400… leaving it at $2700 for one semester then $156 for a parking pass + books,,,,,, If the price goes up I have to pay it, however, when is this crazy rollercoaster going to end in California?

  • pippi

    There are studies that show (1) 4 year olds in a class of 5/6 year olds are more heavily medicated with ADD/AHAD. I suggest we have the drug manufacturers subsidize the early-entry of these kiddos, as they’re dramatically increasing their potential user(s) base.

    Which, of course, will then get funded by a state program for parents who can’t afford the time to discipline their kids to compete with the older kids nor the drugs to keep them acting ‘normally’ by medicating them to control the normal activity of 4 year olds in a structured, anxiety-inducing setting.

    Where’s Susan Powder (‘Stop the MADNESS!’) when you need her?

  • Gina Marie

    I think also when government officials leave office, they SHOULD NOT get an income! When we leave a job, we don’t still get paid, so why should they? Let them find another job also or make money off their books and stuff. NOT get almost the same salary they were getting IN OFFICE! That would save us a lot of money also (meaning former presidents, vice presidents, all the way down the line to the lowest).

  • Ellen M.

    Are we ready to look at the consultant fees for the prison system? Why do taxpapyers subsidize such enormous fees?

  • Nowwhat

    Stop the free medical care to illegals, extended welfare, extended subsidized housing, food stamps, pampered prisoners. It is these “entitlements” that are killing state and fed budgets. Also revise prop 13 to cover homeowners only. Businesses should not be included. The gov’t gets plenty of tax revenue. They spend it in ways many do not approve.

  • Rick

    The Democrats have controlled the legislative process in California for years. If you always do what you always did, you will always get what you always got. Stop voting in liberals who never saw a program they didn’t like! California could save billions by not educating, incarcerating and providing medical care to illegal aliens. Where is the will? The Democrats want to hand out the amnesty candy so the illegals will vote for Democrats in the future and keep them in power. Unfortunately the damage has been done. Fortune 500 corporations and companies looking for lower taxes have left the statein droves. No new taxes!

  • Jose

    Let Governor Brown start planning more cuts because the taxpayers of this state have had enough of poor mismanagement of funds by local and state governments. The California taxpapers will not be manipulated by more empty promises or announcements of impending disasters that will be forthcoming from the state capital if taxes are not approved. Do not insult the intelligence of the people of this state by using “scare” tactics to further the state’s argument for the tax initiative.

  • AL

    Unless the State wakes up, on the unarmed invasion by legal and unrestricted illegal immigration into California, this problem is only the beginning.

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