California Budget Problems Reach Critical Mass
Today California governor Arnold Schwarzenegger issued an executive order in an attempt to address the serious financial issues facing the state.
EXECUTIVE ORDER S-09-09by theGovernor of the State of CaliforniaWHEREAS due to developments in the worldwide and national financial markets, and continuing weak performance in the California economy, the General Fund deficit for the 2009-2010 fiscal year is estimated to grow to $24.3 billion; and
WHEREAS the State Controller projects that as of July 29, 2009, California will not have the cash needed to meet all of its payment obligations; and
WHEREAS the projected budget deficit will require critical cuts to State programs and services, and additional borrowing from local governments; and
WHEREAS immediate action is needed to address the budget and cash crisis facing the State of California; and
WHEREAS immediate action to reduce current spending must be taken to ensure, to the maximum extent possible, that the essential services of the State are not jeopardized and the public health and safety is preserved; and
WHEREAS State agencies and departments under my direct executive authority must take all available steps to reduce their expenses to achieve budget and cash savings.
NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, in accordance with the authority vested in me by the Constitution and the statutes of the State of California, do hereby issue the following orders to become effective immediately:
IT IS ORDERED that except for projects funded by the American Recovery and Reinvestment Act, or projects funded by bonds, grants or projects specifically mandated by court orders, or public-private partnerships that require no direct state expenditures, any funds encumbered on or after March 1, 2009, for contracts entered into for which goods or services have not been provided or for contracts proposed to be entered into during the 2008-2009 fiscal year by State agencies and departments, regardless of funding source, are hereby disencumbered and the funds will revert to their original funding source if no legal liability will be incurred by the State. If a legal liability will be incurred by the State, approval to continue encumbering the funds must be obtained from the Agency Secretary and the Director of the Department of Finance.
IT IS FURTHER ORDERED that by 30 days after the passage of a revised budget for fiscal year 2009-2010, all State departments, regardless of funding source, shall submit a plan to their Agency Secretary that provides for a reduction of the amount of the department’s appropriation to be encumbered by new contracts, extended contracts or purchases from statewide master contracts in the 2009-2010 fiscal year by at least 15 percent, whether the reduction results from cancellation, suspension, renegotiation or otherwise.
IT IS FURTHER ORDERED that effective immediately and until a State department’s plan is approved by the Agency Secretary, a State department is prohibited from entering into any new contracts, amending existing contracts, issuing purchase orders for goods or services, or making purchases from statewide master agreements or leveraged procurement agreements for goods or services.
IT IS FURTHER ORDERED that the Director of the Department of Finance shall establish an exemption process regarding all contract cost reduction measures contained in this Order that Agency Secretaries and Cabinet-level Directors shall utilize to determine if an exemption is justified based on an emergent situation to preserve and protect human life and safety; avoiding significant revenue loss; achieving significant net cost savings; maintaining multi-year IT system and service contracts approved by the Office of the Chief Information Officer; or providing critical services and functions.
IT IS FURTHER ORDERED that the services and functions of state government directly related to the preservation and protection of human life and safety, including but not limited to emergency and disaster response activities and the provision of 24-hour medical care, shall be deemed critical and exempt from this Order.
IT IS FURTHER ORDERED that all Agency Secretaries and Department Directors shall take immediate action to implement this Order to reduce state expenditures.
IT IS REQUESTED that other entities of State government not under my direct executive authority, including the California Public Utilities Commission, the University of California, the California State University, California Community Colleges, the legislative branch (including the Legislative Counsel Bureau), and judicial branch, implement similar or other mitigation measures to achieve budget and cash savings and additional transparency in state government.
This Order is not intended to create, and does not create, any rights or benefits, whether substantive or procedural, or enforceable at law or in equity, against the State of California or its agencies, departments, entities, officers, employees, or any other person.
I FURTHER ORDER that, as soon as hereafter possible, this Order shall be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this Order.
If California (pays $1 in federal taxes for every 81 cents that gets spent there) didn’t have to prop up the welfare states like Mississippi and Alaska (gets $1.80 spent in their states for every buck they pay), they could have a balanced state budget without having the citizens pay any more in TOTAL taxes than they do today.
California has more welfare recipients then those states combined. That state needs to get rid of all the waste and useless environmental programs. Needless state regulations on business. It cost more then 40 grand just in needless environmental impact studies just to build a house. Think there is a problem there????
Why the government waste so much money. Of course Arnold wont allow the loop holes in California to be fixed this might affect his rich friends, He is also considerd allowing folks out of Jail early cause of over crowded cells, and no money, well this looks like the time to get rid of prhibition and allow the state of California to run and grow its own marijuana get rid of the despenceries and put it in state liquor stores, tax it and all profit goes to California to stablise health care and schools and safety nets, I here gov. saying ounces go for 150.00 but if anyone here has gone to despencery they no its about 450.00 to 650.00 per ounce about triple what they say so the potentiol to make alot of money for State of Calif. is out there. we need to take in to concideration the saveings of about 4.3 billion in jails police and judges whom rule over these matters, Some say Its no good but its here to stay, If we cant get rid of it why allow others, like cartels terrorist and gangs to control this market and get rich doing it. Making it leagle will take 60 perc. of the money gangs terrorist and cartel make off it, the turn around would be a wonderful change the money would be in the good guys hands and not the bad guys, no money to be made then the crime and crimanals go down, save save win win for all,anyone who has smoked marijuana knows for a fact the alcohal is worse for u and that if given the choice between going into a room of drunks or pot smokers everyone would go into the room of pot smokers cause they will be laughing and alcholics will be fighting each other,
Only Arnold could suggest we allow wealfair to fail and education to fail, Only in America could this happen, Trillions of dollors being given out in Iraq and Afqan, and aid to the rest of the world. Banks auto makers, and corp. compnies again come out on top, while California whom pays the most taxs to fedral government dosnt even get considerd for bail out, If California fails Imagine how much money feds wont get and that meens the rest of the country wont be getting there hand outs from our taxes we pay to government whom is suppose to be for the people and not special interest, The reason they coulnd allow these big banks to fail it cause ther run by foreign companies and they wouldve lost alot of money and taken all there business out of the country and then the country would fail, So again rich get bailed out and poor get stiffed and stabed in the back by the one the elected for President of United States, He can fly all over the world and send money every were else than were it need to go, Wake up and lets vote for someone who cares Montel williams is a good choice,