Once more, California will have to scour every sector of state government to find another $20.7 billion to balance its budget over the next 19 months. Unfortunately this time, state leaders won’t be able to acquire savings from some of the state’s largest spending groups.
California’s not allowed to use funding for K-12 schools or colleges because the state already is spending close to a minimum amount required by the federal government. The state also can’t cut down the budget for Medi-Cal until January 2011 for the same reason. Those programs combined make up more than half the state’s $84.6 billion general fund budget.
“We cannot reduce those areas very much more, so that closes off a very big piece of your budget,” said nonpartisan Legislative Analyst Mac Taylor, who released his $20.7 billion deficit projection last Wednesday.
State leaders will probably work at additional cuts in prisons, state parks and social service programs not related with federal spending requirements or matching funds. Another target could be Healthy Families, the low-cost children’s health insurance program. Some time ago, Schwarzenegger proposed abolishing Healthy Families and did cut its funding this summer. Nonetheless, he and other lawmakers restored coverage for 600,000 low- and middle-income children in September.
“I think we’ve exhausted cuts that don’t shock the conscience,” said Anthony Wright, executive director of Health Access California. “We need to look to other solutions, including raising taxes and revenues, because the cuts that are left are unforgivable, including denying children coverage.”
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