Budget plans spares health, welfare programs from deep cuts governor proposed

October 6, 2010

By Daniel Weintraub

The state budget package laid out by legislative leaders and Gov. Arnold Schwarzenegger scales back the most drastic cuts to health and social service programs the governor proposed earlier this year.

Schwarzenegger’s proposal to eliminate the CalWorks welfare-to-work program and most of the state’s subsidized child care do not appear in the final agreement. His plan to eliminate community mental health programs and adult day care were also dropped from the final deal.

And Schwarzenegger’s proposal to eliminate services to many of the elderly and disabled people who get –in-home care to help with their daily living was drastically pared back.

The budget also includes money to restore cuts Schwarzenegger made last year to the Office of AIDS and child welfare services.

Democratic lawmakers, meanwhile, dropped their proposals for an oil severance tax, stepped up sales tax enforcement, and the repeal or suspension of corporate tax breaks adopted as part of earlier budgets.

Instead, legislative leaders and the governor are banking on state revenues coming in higher than Schwarzenegger estimated earlier, more federal funds than the governor anticipated in May, and a variety of fund shifts and gimmicks, including the deferral into the next budget year of more than $1 billion in payments due the public schools.

The budget plan also includes $1.1 billion in planned cuts to state prisons, most from planned savings in inmate medical care, and $1.5 billion in reductions to state payrolls costs, which Schwarzenegger is expected to negotiate with the public employee labor unions.

We will be posting more details here as they become available.

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