LOS ANGELES, May 22 (Xinhua) -- California faces massive layoffs at the
state and local government levels and schools are looking at large budget cuts
after voters nixed a number of budget-balancing proposals Tuesday.
Low-income families and the poor will suffer the most because of cuts in
benefits.
California faces a budget deficit projected at more than 24 billion U.S.
dollars when the new fiscal year starts in July. That is more than one-quarter
of the state's general fund.
Voters said they no longer want the Legislature to balance budgets with
higher taxes, complicated transfer schemes or borrowing that pushes the state's
financial problems off into the distant future.
As a result, Governor Arnold Schwarzenegger has made it clear he intends to
close the budget deficit almost entirely through drastic spending cuts.
Schwarzenegger is considering dismantling the state's CalWorks program,
which serves more than 500,000 poor families with children. He is also
considering the elimination of the Healthy Families program, which provides
medical coverage to 928,000 children and teens.
Eliminating the two programs would save the state about 1.4 billion dollars
in the coming fiscal year.
Analysts said if the Legislature approves the elimination of the two
programs, the cuts would be so deep and painful it would completely reshape
California's social services network.
CalGrants, a financial assistance program that offers cash grants to lower
and middle-income college students each year, could also be cut. The governor's
proposal would eliminate the 77,000 new grants awarded each year at a cost of
180 million dollars.
Those savings would eventually grow to more than 900 million dollars as the
program is phased out.
Big cuts to other programs and departments are also on the agenda.
Among the possibilities is a 10-percent reduction in court funding as well
as the elimination of 600 million dollars from state universities and 750
million dollars from the state prisons, mostly from programs designed to
rehabilitate inmates.
The budget also proposes 825 million dollars in cuts to state community
colleges. Some 250,000 students would likely be lost under the proposed budget.
The Los Angeles Unified School District faces a deficit of 300 million
dollars and in the coming six weeks must find 130 million dollars to keep it
schools operating normally.
The city of Los Angeles has an even more serious problem.
Mayor Antonio Villaraigosa said the governor's plan to "balance its books
on the backs" of local government could force the city to cut services and seek
loans of 68 million dollars to 120 million dollars from the private sector.
Los Angeles County also faces cuts of more than 300 million dollars, which
could affect welfare, drug prevention and other programs.
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