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Governor Proposes Cuts to PLF and TBR
TO: CLA MEMBERS/ SYSTEMS/ NETWORK CONTACTS
FROM: Mike Dillon, CLA Lobbyist and Christina Dillon, CLA Lobbyist
RE: NEWS FROM THE CAPITOL
I. GOVERNOR RELEASES 2008-09 STATE BUDGET - CUTS PUBLIC LIBRARY PROGRAMS BY 10 PERCENT
CLA's Letter Writing Campaign May Have Prevented Deeper Cuts to PLF and TBR
Facing a daunting $14.5 billion deficit, at 11 a.m. today Governor Arnold Schwarzenegger released his much-anticipated 2008-09 California State Budget. The Governor began his press conference this morning by stating that he would be proposing a ten percent across-the-board cut to "almost every program," which he called, "very difficult to do. I can see every single person hurt by these cuts." In fact, the Governor notes in his Budget primer, that the ten percent reduction is in effect for "all General Fund departments and programs, Boards, Commissions, and elected offices-including the legislative and judicial branches..." He adds, "While these reductions present numerous challenges to implement, this across-the-board reduction approach is designed to protect essential services by spreading reductions as evenly as possible so that no single program is singled out for severe reductions." Having said that, it is apparent from the list of cuts released today that several areas of the Budget will bear a larger brunt of the reductions, such as health and welfare, education, and parks and recreation. For example, the Governor proposes cuts to the Department of Parks and Recreation that will result in the closing of "48 state parks out of 278 existing parks," cutting Medi-Cal payments to counties by $75.8 million, and a controversial suspension of Proposition 98, with cuts to K-12 education, amounting to $4.4 billion.
There had been a rumor that suspending Proposition 1A, to seize property taxes from cities, counties, and special districts, might be on the table. However, this solution does not appear to be part of the Governor's proposal.
IMPACT ON PUBLIC LIBRARIES
The Public Library Foundation and the Transaction Based Reimbursement program, as well as state operations for the California State Library, each fell victim to the ten percent across-the-board cut. The PLF was reduced by $1.4 million and the TBR was reduced by $1.4 million. However, based on the radical proposed cuts in various programs in the Budget, we are of the firm belief that CLA lobbying efforts, as well as CLA's grass roots writing campaign to legislators and the Governor, may have protected the Public Library Foundation and Transaction Based Reimbursement from deeper reductions than those listed below:
The Governor's Budget states:
BUDGET-BALANCING REDUCTIONS
- Total budget-balancing reductions for the California State Library amount to $5.1 million in 2008-09.
- The major reductions in 2008-09 are described below:
- A $1.6 million reduction for State Operations - Support. The actual impact depends on how the State Library implements this unallocated reduction.
- A $1.4 million reduction for the Transaction Based Reimbursement Program. The reduction would reduce state reimbursement of the local costs for library book loan programs.
- A $1.4 million reduction for the Public Library Foundation Program. This would reduce state support for local library operating costs. Local libraries may need to delay purchases of new materials or reduce the hours or days of operations."
The Governor's Budget provides two increases in funding for the State Library:
MAJOR PROGRAM CHANGES
- The Budget provides $1,420,000 General Fund to acquire and implement the California State Library's new Integrated Library System.
- The Budget provides $2,600,000 General Fund to relocate State Library staff and materials during the renovation of the Library and Courts Building.
II. GOVERNOR DECLARES A "FISCAL EMERGENCY" - SPECIAL SESSION ON THE BUDGET TO FOLLOW
In his State of the State speech on Tuesday evening, Governor Schwarzenegger noted that he was concerned about the current Budget process, where "automatic formulas increase spending by 7.3 percent...We do not have a revenue problem, we have a spending problem. We need to fix the system." Thus, today the Governor stated that he is calling a "Special Session of the Legislature to immediately address the Budget and cash shortfall." The Governor is also proposing the so-called "Budget Stabilization Act" which would "provide for automatic reductions. These reductions will be triggered whenever the Governor projects that the state will be in deficit. The Governor will be required to estimate the year-end balance in the General Fund three times each year - in November, January and May. When this estimate shows a likely General Fund deficit of one percent or less, the Governor will reduce appropriations, on an annualized basis by 2 percent; when it shows a deficit of greater than one percent, appropriations will be reduced by 5 percent."
This proposal is likely to receive strong resistance by the Democratic-controlled legislature, who feel that any mid year Budget reductions should be subject to legislative determination, rather than a sole determination by the Governor.
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Posted on January 10, 2008 1:29 PM | Permalink