Governor Arnold Schwarzenegger Misses Opportunity to Repair his Legacy and California’s Budget

Governor Arnold Schwarzenegger Misses Opportunity to Repair his Legacy
and California’s Budget
by Joseph Villela, Policy Advocate
 

Governor Arnold Schwarzenegger’s job approval rating at the beginning of last year was 40%, but by December 2009 it dropped to a record low of only 27%. Furthermore, 74% of Californians believe that California is headed in the wrong direction. Governor Schwarzenegger is facing this public sentiment as he enters his last year in office. As a candidate, he ran as an “outsider” and successful business man that “knew how to manage a budget.” And, at one point, he enjoyed a 65% approval rating.

Running a business is much different than governing one of the largest economies in the world. If Governor Schwarzenegger had been hired in 2003 as the CEO of a company, based on his current record it is fair to speculate that the Board of Directors would have fired him a long time ago. Since his election, California has faced a deficit. In fairness to Governor Schwarzenegger, California’s structural deficit was not created by his policies but is rooted in an outdated tax system, an initiative process that has limited the general fund, and a budget process that allows the minority party to hold the budget hostage. However, the Governor’s disastrous fiscal policies have contributed vastly to the deterioration of California’s economy. For instance, one of the first policies enacted by Governor Schwarzenegger was the rescission of the Vehicle License Fee (VLF), an annual tax on ownership of motor vehicles. Estimates have suggested that this action has cost the state $14 billion from the fiscal years 2003-04 through 2008-09. While the Governor does not admit that this was a mistake, recent actions speak louder than words. Last year, the Governor proposed an increase of .5% to the Vehicle License Fee.

In 2009, California faced more than a $60 billion deficit, and this year’s deficit is projected to be $20 billion. The Governor’s approach has lacked vision and is rooted in the same conservative view that favors deep cuts to public services as the only way to balance the budget. The Governor has encountered various opportunities to live up to his rhetoric as a reformist. Alas, he has decided to constantly propose myopic solutions that have dismantled the state’s safety net. The Governor has been constant in his vision, which includes elimination of public programs that provide services to lawfully residing immigrants such as the Cash Assistance Program for Immigrants, California Food Assistance Program, and Medi-Cal for legal immigrants. These programs were created under the Wilson Administration as a response to the Welfare Reform Act, which affected lawfully residing immigrants. In addition, the Governor throughout his tenure has sought to reduce funding for: In-Home Supportive Services that help seniors and disabled persons who need help to live independently; CalWORKs, which provides cash grants to about 1.3 million low-income families to assist them in becoming self sufficient; and Healthy Families Program, which provides low cost health coverage to about 1 million children.

Thus far, under the leadership of Governor Schwarzenegger it has become more difficult for students to attend college. Undergraduate tuition has increased for the CSU system from $1,427 in 2001-02 to $4,026 in 2009-10. Similarly, undergraduate fees for the UC system have doubled and graduate student fees have increased 145% since 2001. Furthermore, the cost of living continues to climb, but families who receive assistance from CalWORKs will no longer receive a Cost of Living Adjustment (COLA). CalWORKs grants have also been reduced, and for the first time in the history of the program grants to children will be reduced if their parent(s) do not comply with the federal work requirements. Most of these cases are children who are U.S citizens but whose parents are undocumented. This will take effect in 2011. Medi-Cal patients have seen their ‘optional’ benefits disappear and shared cost increase. Lastly, although an immigrant himself, the Governor eliminated funding for the Naturalization Service Program, which helps community based organizations assist eligible legal immigrants to naturalize. Governor Schwarzenegger, these are your achievements.  

Governor Schwarzenegger has missed an opportunity to amend his legacy and repair the current structural state’s deficit. He could have started by proposing a budget for all, in which the pain is truly shared across class sectors, including the elimination of tax loop holes and giveaways to big corporations; one that is compassionate and does not pose a threat to California’s future. However, the proposed budget released by the Governor this year is not only shortsighted but continues to target vulnerable communities.

 

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1Public Policy Institute of California. “Time Trends: Job Approval Rating for Governor Schwarzenegger.” January 27, 2010. Available at <http://www.ppic.org/main/dataSet.asp?i=927>

2Public Policy Institute of California. “PPIC State Wide Survey: General Direction of Things in California. January 2010. Available at < http://www.ppic.org/content/pubs/other/DirectionState0110.pdf>

3Sexton, Collen A. Arnold Schwarzenegger Biography. A&E Television Network, 2005. Pg 12.  

4Public Policy Institute of California. “Time Trends: Job Approval Rating for Governor Schwarzenegger.”January 27, 2010. Available at <http://www.ppic.org/main/dataSet.asp?i=927>

5Legislative Analyst Office. “California’s Fiscal Outlook: LAO Projections, 2003-04 Through 2008-2009.” November 14, 2003. Hill, Elizabeth. Available a t<http://www.lao.ca.gov/2003/fiscal_outlook_03/03-04_fiscal_outlook.pdf>  

6Legislative Analyst Office. 2009-10 Budget Analysis Series: The Fiscal Outlook Under the February Budget Package.” March 13, 2009. Taylor Mac. Pg. 6. vailable at <http://www.lao.ca.gov/2009/bud/feb_overview/feb_overview_031309.pdf>   

7California State Student Association. “Access: Increasing to a Quality Education at the California State University.” Pg. 3. Available at <http://www.csustudents.org/documents/Approved-Policy-Agenda-2009-10.pdf>

8UC Student Association. “Keep the Promise Alive: 2009 Affordability Report.” Pg 5. Available at <http://ucsa.org/document/view/21>