Governor's state budget plan a mixed bag, say lawmakers Governor's state budget plan a mixed bag, say lawmakers (December 24, 2003)

Action taken by Gov. Arnold Schwarzenegger after his December 18 declaration of a financial emergency in California restores some lost funds to cities and counties, but some state lawmakers are criticizing it as more of a mixed bag than a boon.

With this declaration, the governor has the one-time authority to cut about $150 million -- roughly 5 percent of the state budget -- without legislative approval. That money would help make up for some of the funding lost by Gov. Schwarzenegger's repeal of the vehicle license fee (VLF) provision of the 2003-04 budget, which tripled the fee by returning it to the amount charged until 1998.

The restoration of funding is good news for local officials, who have been concerned about cutting crucial services after losing VLF money. But what's unclear now is exactly where the funding will come from in the cash-strapped state budget.

Some lawmakers said that there may be some unspent money in various parts of the budget, but that this money will not cover the entire $150 million.

The governor proposed several budget cuts shortly after taking office, including reducing state funding for highway and BART expansions. Assemblyman Joe Simitian, D-Palo Alto, said the governor is expected to submit a new proposal for cuts, including a plan to lower payments to physicians providing Medi-Cal services.

Those cuts are likely to cause heated debate in the Legislature, Mr. Simitian said, adding: "What he's done has bought us more time. The only real solution is to buy less, collect more and do it now."

Bay City News Service

E-mail a friend a link to this story.