California health programs will lose more than a billion dollars under the state’s new budget. The cuts could eliminate thousands of children, seniors and the disabled from health care programs.
California is in crisis. The state is $24bn short of balancing its books this year – and it may run out of cash to pay its bills in a matter of weeks. Avi Lewis travels to South Central Los Angeles to learn about the political causes and the human impact of shock therapy, California style – and gets a glimpse of how the next chapter of the global economic crisis is likely to unfold.
From the New York Times:
Facing a $21.3 billion budget deficit, Mr. Schwarzenegger is requesting a $6 billion loan from the federal government, and has proposed a variety of politically unpalatable cuts, including commuting prisoners’ sentences, taking away health insurance from some poor children, reducing aid to community colleges and eliminating a large chunk of financing for shelters that serve children and women who have been abused.
The Legislature, controlled by Democrats, will hold public hearings on the governor’s proposals next week and come up with its own suggestions, which would probably affect fewer vulnerable residents and avoid jeopardizing the loss of federal education and health care money that requires a state match.
While California has suffered the same fate as much of the nation — high unemployment, large numbers of foreclosures, general economic sluggishness — its budget woes are greatly exacerbated by its odd and in many ways outmoded way of doing business.
The ballot initiative process — in which legislators or independent groups ask voters to mandate how the state’s money is spent or not spent — has become at times an exercise in fiscal self defeat, with voters moving to earmark money for one special program one year, only to contemplate undoing their own will a few elections later.
San Francisco Mayor Gavin Newsom today announced that he is indeed a candidate for Governor of California in 2010. He faces a stiff primary challenge from California Attorney General and former Governor Jerry Brown among others.
From the New York Times:
A tent city is burgeoning in Sacramento, Calif., prompting local officials to consider whether such an encampment should be made permanent, with plumbing and all.
The primitive settlement sits in the shadow of the state capitol and is home to about 300 people who have no toilets or running water, creating unsanitary conditions that advocacy groups worry could promote diseases like cholera. With the downturn in the economy and more working-class people losing their jobs and their homes, the tent city is expanding.
The mayor of Sacramento, Kevin Johnson, said in an interview that he wants to create a permanent tent city for the homeless, although he is not sure where it should be. He said he recognized that doing so would be difficult politically. But he said a permanent site could bring sanitation services and regulations like a ban on drugs and alcohol.
Mr. Johnson said that the rise in homelessness was a regional problem, and that surrounding localities should help pay for any solution, like establishing a permanent tent city. He will also have access to $2.3 million that President Obama’s stimulus package is giving Sacramento to deal with homeless issues.
“We’ve tried to sweep the homeless under the rug and it’s been our dirty little secret for far too long,” said the mayor, who took office three months ago and whose status as a former Phoenix Suns basketball star has helped attract media attention to the tent city. “We’ve been relying on good Samaritans and nonprofits, but they’re overwhelmed now.”
Tent cities — much like the “Hoovervilles” of the Depression — have sprung up elsewhere around the country. But Sacramento, with one of the highest foreclosure rates, has one of the biggest, with a population of “easily 300,” said Rob Fong, a Sacramento city councilman, and it is “definitely growing.”
“It’s an unfortunate sign of the times,” he said.
On the evening before the California Supreme Court holds oral arguments on the validity of Proposition 8 and whether the California Initiative process can be used to take away fundamental freedoms, the California Marriage Equality campaign is sponsoring a candlelight vigil on March 4th, 2009.
At 5PM, there will be a pre-march rally at Harvey Milk Plaza (Market at Castro). The march down Market Street commences at 6PM and will terminate at the California Supreme Court at 6:45 PM.
Former President of the San Francisco Board of Supervisors and current State Assemblyman Tom Ammiano has introduced a bill in the California Legislature to legalize marijuana. Mr. Ammiano argues “billions of dollars in the illicit marijuana trade goes up in smoke every year, billions that the state could get by taxing the drug.” He adds that “treating pot just like alcohol and cigarettes could help balance California’s budget.”
Ammiano says marijuana is California’s largest cash crop.
“The marijuana industry probably nets in California alone $14 billion,” Ammiano said.
The bill is also supported by state Board of Equalization chair Betty Yee. She says the taxes would be a windfall for the state.
“The revenue impact of this proposal we believe will generate over $1.3 billion,” Yee said.
Part of that money would come from a $50 per ounce state excise tax on the drug – roughly $1 per joint, according to Ammiano. Sales tax revenue would make up the rest.
Advocates say the bill would take the profits away from drug dealers.
“They are willing to kill for and rob California taxpayers of billions of dollars in potential revenue,” Steve Gutwillig said.
More from KGO ABC News Channel 7.
The California Republicans are holding their annual convention this weekend up in Sacramento where party activists were attending workshops on “understanding how to build our party” and “strengthening the Republican brand.” Earlier this week, California lawmakers approved a budget that includes more than $12 billion in tax increases. Six, dare I say it, courageous, GOP lawmakers voted for the budget. But one man’s courageous lawmaker is another man’s rogue legislator. Via the San Francisco Chronicle:
A California Republican Party committee has voted to reprimand six GOP lawmakers who voted for a compromise budget plan that boosts taxes. The measure, which was endorsed Saturday during the party’s spring meeting in Sacramento, also denies the lawmakers any financial support from the party during the 2010 elections.
Only one of the six lawmakers faces re-election then, freshman Assemblyman Anthony Adams of Hesperia. The others could suffer, however, if they run for other positions or seek a statewide office.
The rogue lawmakers supported a $42 billion budget package negotiated between GOP Gov. Arnold Schwarzenegger and legislative leaders from both parties.
The party’s vice-chairman for Southern California, John Fleischman, sponsored the resolution, which goes to a floor vote of the delegates on Sunday.
It’s not for me to comment on the internal ruminations of the Grand Obstructionist Party of California, but if they want to commit political suicide, that’s their business though I can only hope it is soon. I hate lingering political deaths. But I do question why the San Francisco Chronicle would refer to six GOP legislators who crossed the aisle as “rogue.” And then I wondered if would this committee reprimand the Governor for signing the budget but apparently one GOP delegate, Alex Burrola, has a different idea that has to be read to be believed.
The number of tenants being affected by the housing crisis are growing as foreclosures continue to rise across the US. It is not just homeowners who are feeling the full effect of rise in foreclosures. Many people who rent their homes are facing eviction.
Al Jazeera’s Casey Kauffman met the Hinojosa family in Los Angeles, who were recently evicted from their home.
The developer of a Rio Vista, California neighborhood built everything except the houses. There are streets, sidewalks and even stop signs, but none of the 855 planned homes.