California State Controller John Chiang stated today that California is running out of time, that there is recourse but to limit or eliminate State services.
Chiang refers to the situation in California as a "meltdown of State government" that cannot be avoided without a balanced budget. California's deficit is $24 billion and growing as Governor Schwarzenegger's plan to increase revenue failed by over $800 million in May 2009 alone when state income tax receipts for personal income fell by over 39% and revenue from business taxes fell by 52%.
State agencies typically inflate their budget requirements ahead of the State budget deadline of July 1st each year so the actual deficit may reduce by default after the deadline. In any event, all State agencies will have no choice but to reduce spending and limit activities.
The California Department of Corrections and Rehabilitation states that 37% of its inmates are non-serious, non-violent offenders and that if they were released the cost of incarceration could be reduced by $4 billion annually, a huge and immediate benefit to the State. The problem is that the California Correctional Peace Officers Union, California's strongest union, has made it clear that their job security can not be undermined without political repercussions for the Governor.
Calling the Governor "soft on crime" by releasing inmates is the one thing that Schwarzenegger wants to avoid on the theory that could terminate his political career. It is a conflict-based governorship when he will not act in the best interest of the state and its citizens but instead acts to ensure his political future.
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Wednesday, June 10, 2009
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