Governor Says It Would Be "Big Mistake" To Blame Budget Deficit on Illegal Immigration

Assembly Republicans earlier this week claimed that undocumented immigrants cost the California $9 billion every year, and referenced a 2004 study by the Federation for American Immigration Reform, which estimated that the State spends an estimated $7.7 billion alone on education for undocumented students.

Assembly Democrats countered that the claim by Assembly Republicans and the study as untrue. The package of bills stand little chance of passage in the Assembly controlled by the Democrats, who voiced strong opposition to the proposals.

Over the past two weeks, the Governor has participated in meetings on his proposals for budget reform with local officials in Bakersfield (Kern County), Orange County, the East Bay, the Inland Empire, and Fresno County.

The Governor introduced some of his budget reform proposals during his State of the State address in January, including a proposed constitutional amendment called the "Budget Stabilization Act.

New Statewide Poll Shows Californians Have "Positive" View Toward Immigration Issue

By coincidence, a new Public Policy Institute of California poll released Wednesday (March 26) that shows Californians cite immigration (11%) as the third biggest issue facing the State, behind the economy (35%) and education (13%) - but show a positive view on both legal and illegal or undocumented immigration issues. Mention of the economy, according to the poll, has nearly doubled since December (from 18% to 35%).

The poll found that a majority of California residents (59%) believe immigrants are a benefit to California because of their hard work and job skills, compared to 34% who say they are a burden because they use public services. In 1998, only 46% of Californians held this view.

The poll also showed that Californians tended to have a positive view toward undocumented or illegal immigrants.

• 66% of California residents think undocumented or illegal immigrants should be allowed to apply for work permits that would let them stay and work in the United States, about the same percentage as one year ago (64%).
• Strong majorities of Democrats (73%), independents (62%), and likely voters (60%) believe that undocumented or illegal immigrants should be allowed to apply for work permits, while California Republicans are divided (48% should be allowed, 50% should not).
• Seven in 10 Californians (72%) think most illegal immigrants who have lived and worked in the United States for at least two years should be given a chance to keep their jobs and apply for legal status; only one-quarter or 25% believe these immigrants should be deported.
• This view, by Californian residents, is shared by majorities across all political parties (Democrats 80%, independents 72%, Republicans 52%) and among likely voters (65%) and is unchanged since December (72%).

Poll Shows Larger Number of Californians Willing to Consider Mix of Tax Increases & Cuts

The same poll released Wednesday (March 26) showed that nearly all Californians (94%) see the state budget situation as somewhat of a problem today.

With the reality of state spending cuts hitting home, concern about the impact of those spending cuts has grown dramatically, with 56% of Californians say they are "very concerned" about the impact of the Governor's proposed spending reductions in the, up 20% since January when only 36% felt that way.

The poll results now show that Californians are now more willing to consider tax increases as part of a solution to the State budget crisis.

When asked how they would most prefer to deal with the state’s budget enormous budget shortfall:

• 42% of Californians choose a mix of spending cuts and tax increases, up from 36% in December.
• 30% of Californians, according to the poll, view spending cuts alone as an option (down from 42% in December).
• Democrats and Republicans remain far apart on budget solution, but the new poll showed the two sides moving closer on the issue that the budget shortfall can't be solved only by spending cuts.
• Most significantly according to the poll, California Republicans today are less likely than in December to support solving the budget deficit mostly through spending cuts (down from 61% in December to 50% today) and are more likely to support a mix of spending cuts and tax increases (up from 25% to 35%).
• Large majorities of Democrats (66%), independents (67%), and Republicans (69%) believe major changes are needed in California’s budget process.

The new poll results is bound to boost the push by State Senate and Assembly Democrats who vowed in February that no budget deal would be possible without a mixture of spending cuts and new revenues, including tax increases.

Budget Subcommittee Hearings Schedule Updated - Major Hearings in April

Meanwhile Budget subcommittees in both houses which have began hearings last week on the 2008-2000 State Budget proposed by the Governor, have laid out a schedule of hearings in April that will cover a wide range of critical issues and programs impacting hundreds of thousands of people with disabilities, mental health needs, seniors and low income families, community organizations and workers that provide services and supports.

While the schedule is not yet complete, several hearing dates - some previously announced - have been set for programs that are threatened with significant spending reductions proposed by the Governor that the Legislature has not yet taken action on, including In-Home Supportive Services (IHSS), adoption assistance and foster care programs, adult protective services, supported employment program, and cost of living increase scheduled for June 1, 2009 for the state portion of the SSI/SSP grants to the lowest income persons with disabilities, the blind, and seniors.

Governor Declared "Fiscal Emergency" on January 10th

The Governor on January 10th, declared a "fiscal (budget) emergency" that required the Legislature to meet in special session and return back to the Governor legislation that addressed the budget crisis.

The Governor proposed major across the board spending cuts of 10% or more for most of the state agency and department budgets. He also proposed major cuts to several programs, including Medi-Cal, that would have taken effect June 1, 2008.

The Legislature held off on most of the Governor's budget cutting proposals - but did approve several spending reductions, including a 10% rate reduction to most Medi-Cal providers, including Adult Day Health program providers, durable Medi-Cal equipment providers, to take effect on July 1, 2008 (instead of June 1, 2008 as the Governor proposed).

The Legislature also approved making permanent what was originally passed as temporary spending reductions to the regional center budget that provides services and supports to over 230,000 children and adults with developmental disabilities, including persons with autism. Those reductions - referred to as "cost containment measures" amount to over $329 million in reductions (or savings to the State general fund) including federal dollars lost, for the 2008-2009 State Budget year that begins July 1.

Legislature Will Likely Delay Action on Most Proposals Until Mid-May

Action on most of the major spending cuts proposed by the Governor will likely wait until the Governor releases his revisions to his proposed budget, in mid-May (May 14 or 15) referred to as the "May Revise" or the "May Revision".

That revision could contain more proposals to cut spending, and other proposed changes, and will also contain the latest economic figures, including if the budget shortfall has grown.

The State's revenue picture is getting some good news however, with gas tax revenues showing a dramatic increase due to the increase in gas prices.

It is not certain yet if that bump in revenues will be offset by what some economic analysts say will be a likely drop in sales tax revenues due to Californians not spending as much money due to rising costs for housing, gasoline, food and other areas.

NEXT STEPS

In looking at next steps, it is important to not only review the steps related to the State budget process, but also the next steps concerning regular session bills that are moving and having hearings at the same time. Also at the same time could be hearings or comments on proposed new regulations.

[Editor’s note: For an exhaustive list of committee and subcommittee hearings and the details of budget cuts and other actions on the disabled community, visit the CDCAN site. There is a lot going on!]

The California Disability Community Action Network, is a non-partisan link to thousands of Californians with developmental and other disabilities, people with traumatic brain injuries, the Blind, the Deaf, their families, community organizations and providers, direct care, homecare and other workers, and other advocates to provide information on state (and eventually federal), local public policy issues.