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The Time is Ripe For Swift Action on the State Budget and True Reform to the Budget Process

A Message from Governor Arnold Schwarzenegger

Twice before, I have asked for your support in bringing reform to Sacramento and to the process of writing our state budget. At the risk of sounding like a bad sequel, I am asking again, because this year, I believe the timing is right.

Our budget system remains broken, and as a result, we are projecting a multi-billion-dollar deficit. This means difficult but necessary funding cuts to our 2008-09 budget that will affect everything from law enforcement to our schools, our parks and the neediest among us.

It is very clear, this year, what happens when we fail to plan – we unfairly put the people of California on a rollercoaster ride.

It’s time we put a stop to this budgetary rollercoaster of increased funding when revenues are flush and cuts when revenues slow down. The only way to accomplish this is through true budget reform.

I have been traveling the state talking about this, and I will continue to do so, because I think it is the most important thing we can do to protect our priorities as a state.

Let me recap for you what I proposed in my State of the State speech in January. I want to:

Create stability in the budget by saving, not increasing spending, in prosperous times.  Establish a savings account for excess revenues taken in by the state each year. In years when tax revenues are below average and California cannot meet its spending obligations, we will be able to transfer the difference from the savings account into the General Fund.

Keep spending under control and eliminate surprises through predictable, negotiated reductions. This reform will allow the Legislature to reduce spending when the Department of Finance predicts a year-end budget deficit, rather than allowing autopilot increases despite reduced revenues.

I believe that these two mechanisms will solve our budget process and, in the future, prevent the kinds of difficult cuts we are facing today.

As for the budget for the coming fiscal year, I have said that this year it is not business as usual. We should not wait until May, or June, or July – we should take action now, because the longer we wait, the worse the situation will get.

I have already proposed my budget, and I have asked the Legislature to take immediate action. I have said that all ideas should be on the table. My door is open, and I am eager to get to the table to negotiate.

I am confident that with the Legislature’s help, and with your support, we can tackle this difficult budget and, more importantly, enact reform to make sure our state never finds itself in this situation again.