Posted on 12/19/2003 4:47:54 AM PST by witnesstothefall
Schwarzenegger move blasted
Top Dems strike at emergency move to backfill vehicle fee losses.
SACRAMENTO Gov. Arnold Schwarzenegger's unilateral move to provide a down payment on the $2.6 billion he promised local government brought down the wrath of several leading Democrats Thursday who accused him of jeopardizing the state's financial health and robbing the poor to help the rich.
While Controller Steve Westly backed the governor and other Democrats hedged their positions, Treasurer Phil Angelides and Senate President Phil Burton went on the offensive against Schwarzenegger's decision to start cutting health and welfare programs to help fully fund local governments that lost revenue when he repealed the tripled Vehicle License Fee.
Long Beach Assemblywoman Jenny Oropeza, who chairs the Assembly Budget Committee, expressed disappointment that Schwarzenegger exercised his special powers as governor to backfill the VLF fees without consulting the Legislature first.
"This unilateral action is disappointing because Democrats have proven, most recently during talks on the deficit bonds, that we are willing to sit down with the governor to work on solutions and solve problems,' Oropeza said in a statement. "For him to say now, one the eve of the holidays, that he's taking this step without any participation by the Legislature sends a disheartening message.'
Local city leaders, however, expressed relief that the governor acted urgently to get the cities funds they need to pay for police and fire services, among other things.
"We are very pleased at the governor's decisive leadership on this critical fiscal issue,' said Long Beach Mayor Beverly O'Neill, who spoke with the governor by phone Thursday. "By keeping his promise, and finding an administrative solution to this issue, we can all enjoy our holidays with the peace of mind that more budget reductions beyond those already required will not be necessary.'
O'Neill was told the city would get a check by next week totaling the full amount of VLF revenues for December. After that, Schwarzenegger promised that cities would receive monthly VLF payments in the full amount through the remainder of the fiscal year.
Angelides called Schwarzenegger's move another step in the wrong direction, saying he will balloon the 2004-05 shortfall, already pegged as high as $29 billion, with legally questionable actions that do not address the budget crisis comprehensively.
"This is akin to the arsonist calling the fire department and saying we've got an emergency here,' Angelides said.
Burton was just as hostile, saying: "My mother didn't raise me to take money from poor women and children and give it to people who own five or six BMWs or Mercedes.'
But they stopped short of threatening to block Schwarzenegger, who formally announced his new strategy Thursday just as the state's credit rating was taking another beating.
The governor's move, in part based on new authority created by the Legislature during former Gov. Gray Davis' tenure, was a response to legislative inaction on his plan to reimburse cities and counties the money they were receiving before he rolled back the VLF. The first checks, for $40 million, will go out on Dec. 26.
"I've asked (the Democratic leadership) over and over again to join me and give back to the local governments the money that we owe them; and even though time is running out for (them) and they're stranded with no money, our legislators have left town,' Schwarzenegger said during a Capitol news conference surrounded by dozens of local officials.
He ordered $150 million in cuts to current spending to begin addressing an existing deficit exacerbated by his action.
Westly joined the governor to applaud his efforts, and Assembly Speaker Herb J. Wesson released a prepared statement neither overtly supportive nor critical.
Burton said the problem was one for cities and counties to resolve on their own because the state was dealing with its own financial crisis.
He said if the local communities truly believe they are facing disaster, they should use their new authority granted them by the Legislature to place on local ballots a half-cent sales tax, pointedly noting the pressure brought on the Legislature by Los Angeles Mayor James Hahn and county Sheriff Lee Baca.
"We have heard their cries, like little babies they cry,' Burton said. "Mayor Hahn of L.A. six times a week and twice on Sundays. Lee Baca, sheriff of L.A., on the phone constantly.'
"Yeah, they cry, who doesn't want money? How many of you have kids? It's like Santa Claus give me something for Christmas.'
Local officials even prominent Democrats who support funding for social services responded with nothing but praise for Schwarzenegger. More than 40 sheriffs, police chiefs and mayors joined him on stage to thank him.
"We haven't seen this kind of bold leadership in Sacramento for a long, long time, and we are really grateful for it,' Hahn said.
Los Angeles and a number of other cities were preparing to file a lawsuit against the state to force payment of the VLF funds, but Hahn said such a move now appears unlikely unless the Legislature comes up with a way to block the governor.
Because leadership in the Democratic-controlled Legislature refused to cut health and welfare or any other programs in the recent special session, the governor chose to use his authority to reduce spending mid-year on any line item in the budget by up to 5 percent. He also can appropriate money for a specific purpose by declaring it an "emergency expenditure.'
Baca said that if the governor had not used what is called his "Section 27 Authority,' Los Angeles County would have had to lay off 1,500 deputies on top of 1,000 lost in past budgets. The Sheriff's Department was already $166 million down and would have lost another $175 million. The department had already been shortening jail sentences and closing jails.
California is in play.
This just irritates me. How could these governments have lost what they never had??? True, the fee was collected for about a month, but even then, those collecting it knew it would have to be refunded, given the illegal nature of its implementation. I have heard this misrepresented so many times, I keep yelling at the radio.
BTW, I think Ahnold is doing great, so far!
SACRAMENTO Gov. Arnold Schwarzenegger's unilateral move to provide a down payment on the $2.6 billion he promised local government brought down the wrath of several leading Democrats Thursday who accused him of jeopardizing the state's financial health and robbing the poor to help the rich.
WOW!
Next thing you know they will accuse ?Arnoold of causing the $38 Billion deficit!!!!
You are just as uniformed of this issue as the media or because you choose to get the "facts" from the media. The new VLF was a replacement for funds that were coming from the "surplus " of the 90s. Previous threads covered this in greater detail...
Yeah, that's why you adjourned and beat feet out of Sacramento, leaving the cities and counties hanging. You thought you'd be able to pin the local layoffs on Schwarzenegger and blackmail him into tax increases.
This teeth-gnashing is because Arnold's got them and they know it. The only way to head this off is to either pass a bill in the legislature or sue. Neither is going to happen because it would make it all too obvious that they're willing to steal money from local governments in order to spend it on their pet programs. Arnold's torn that veil off well and truely.
Man, this is the best article I've read in awhile..I was smiling all the way through it. It's pretty obvious Arnold beat them at their own game on this one.
Where is the compassion????
ROFL!!!
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