Impact of State Budget Cuts

Monday, 17 August 2009 19:15

On July 29, Governor Arnold Schwarzenegger signed a balanced California budget but not before using his line-item veto to make draconian cuts to social services and other state programs on top of cash grabs from local cities and counties.

Yet it is not at the state level where these cuts will be felt. Besides closed state parks and furloughed state offices, there is also the reduced revenue that municipalities will have to work with.

The preliminary report issued by the Controller on August 4 shows that state funding reductions could in total add up to $146 million. This is in addition to the cuts that were already included in the 2009-2010 budget, and far greater than the $18 million reserved as a hedge against state funding reductions.

Public Health will see the biggest cuts, with a total of $19.8 million funding to be stripped from various programs including Medi-Cal and AIDS programs. An estimated $16.1 million will be taken from Human Service programs, including workfare programs, senior care, and child welfare. The Municipal Transit Agency, the Library Fund, Children's Fund and Open Space fund could also see a combined total of $18.7 million in cuts.

Over the next month or so, the Board of Supervisors will be working with the Mayor's office, Controller and city departments to find funding and other financing to cover this shortfall.