(apologies if already posted)
Calif. contemplating rewrite of social contract
At stake are programs for the poor, elderly and frail
The Associated Press
SACRAMENTO, Calif. - With empty pockets and maxed-out credit, California is debating whether it can continue honoring all parts of its social contract with the state's most vulnerable residents. The state faces an unprecedented drop in tax revenue and a widening budget deficit amid the deepest recession in decades, prompting Gov. Arnold Schwarzenegger to propose cost-cutting steps that once seemed unthinkable. At stake are programs for the poor, elderly and frail, placing millions of people in the nation's most populous state at risk of falling through a decades-old social safety net.
Ending the welfare-to-work program for mothers and their children would affect some 546,000 families, and health insurance could be eliminated for 1 million children from low-income families. Services for Alzheimer's patients, disabled and other frail recipients of in-home care also would be greatly reduced under the governor's latest budget proposal, leaving more than 400,000 people without such support.
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The state's projected $24.3 billion deficit for the fiscal year that begins in July amounts to a quarter of its general fund. Schwarzenegger and Republicans in the Legislature say they will not raise taxes again, after agreeing to $12.8 billion in sales, personal income and vehicle tax hikes earlier this year. That leaves lawmakers with few alternatives to severe spending cuts because, although Republicans are the minority party, they hold virtual veto power over the state budget by virtue of California's two-thirds vote requirement... California spent 5.4 percent of all its state and federal funding on public assistance in 2007, compared to a national average of 1.7 percent. That doesn't include Medicaid and other social service spending. Ironically, while many of the programs to assist the frail and needy have their roots in the Great Depression, they may be undone by another great economic downturn.
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There are few modern precedents to the level of social spending cuts being contemplated in California. In 1991, Michigan's Republican Gov. John Engler proposed ending general-assistance payments to single, able-bodied individuals with no dependents. His welfare reform plan was intended to encourage employment and eventually reduced the number of recipients, saving the state millions of dollars a year. Conservatives say states still have a long list of assistance programs and few people would be left without any help. Federally mandated programs such as food stamps, low-income housing and Medicaid — the U.S. health program for low-income people, seniors and the disabled — will continue, said Robert Rector, a senior fellow at the conservative Heritage Foundation. Those programs received financial boosts under the federal recovery act.
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URL:
http://www.msnbc.msn.com/id/31154059/======
There was a report yesterday - don't remember which network - showing how different groups, and mayors, howling about their cuts. Everyone wants someone else to pay for the problem, while rejecting the proposals that were on the ballot a few weeks ago.