CDIR Update No 78

September 24, 2008

CDIR Condemns Schwarzenegger’s California Budget Cuts

Los Angeles-- The Coalition to Defend Immigrant Rights (CDIR)-USA based in Los Angeles vehemently condemns the California Governor Arnold Schwarzenegger’s state budget that eliminated $510 million in spending, including financial aid for elderly renters and homeowners and a program he championed to lower prescription drug prices for low-income Californians.

The CDIR said that Gov. Schwarzenegger for the second year in a row, stripped funding from a program he and Democratic legislators created in 2006 to negotiate lower prescription drug prices for Californians.

"The CDIR agrees with California Assembly Speaker Karen Bass (D-Los Angeles). that “ the governor's penny-wise and pound-foolish and mean-spirited cuts add insult to injury," The budget she and other lawmakers passed last week "already will hurt middle-class and low-income families struggling in a difficult economy.”

Meanwhile, the CDIR stands with State Controller John Chiang, a Democrat who has sparred with Schwarzenegger over efforts to control spending, who said the budget "was out of balance the moment it was signed."

Chiang said: "This budget dooms those most harmed by the record-setting budget stalemate -- students on financial aid, nursing homes, child-care centers and other providers of critical public services -- to relive the same nightmare next year. "

BUDGET PAINS FOR THE POOR

The CDIR said that the budget pain will be felt more immediately. Schwarzenegger eliminated $191 million in grants for elderly renters and homeowners. People over 62 with incomes of $44,096 or less or who are blind or disabled would have been eligible this year for payments to help defray their housing costs.

Nearly 460,000 renters -- most below the federal poverty line -- received payments of up to $343 in 2006, the most recent year for which the Department of Finance has figures for the program. An additional 140,000 homeowners received payments averaging $269 that year.

"Many of the folks who are dependent on these programs for survival are going to be hurt," said Bill Powers, vice president of the California Alliance for Retired Americans. "For a governor who came into office saying he was concerned about seniors and children and folks like that, it's a strange way to behave."

CALWORKS AFFECTED

On the other hand, County welfare directors assailed Schwarzenegger's line-item vetoes of $88 million for CalWorks, the state's welfare program, and $11.4 million for adult protective services for efforts to catch elder abuse.

"This is pretty basic math," Frank Mecca, executive director of the County Welfare Directors Assn. of California, said in a statement. "Cuts to programs that help people get to work mean less work and higher welfare payments. Cutting programs that detect and prosecute welfare fraud equals more fraudulent payments out the door."

Schwarzenegger also deleted an $8-million program intended to curb the use of methamphetamine, and $5.4 million for labor studies at University of California campuses. GOP lawmakers have long sought to eliminate the labor programs, headquartered at UCLA and UC Berkeley, which they view as too sympathetic to unions.

After Schwarzenegger's vetoes, the budget spends $103.4 billion from the general fund, the main pool of taxpayer money -- essentially the same as last year.

The current fiscal year began July 1, but disputes between lawmakers about how to erase a $15.2-billion shortfall led to the longest budget stalemate in modern California history.

For more info about the cdir call (213)241-0906 or email at cdir_usa@yahoo.com