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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

State Cuts to Social Services – California, Maine

  • Governor warns of deep fiscal crisis as he unveils California budget plan, By Evan Halper and Shane Goldmacher, January 9, 2010, Los Angeles Times: “Gov. Arnold Schwarzenegger warned Friday that the state remained deep in fiscal crisis and proposed steep reductions in almost every major government program, but many lawmakers quickly dismissed his ideas as stale and vowed to push for alternatives such as tax hikes. His proposal, aimed at closing a $19.9-billion gap, and the response to it foreshadow another year of paralysis in Sacramento as the governor and lawmakers struggle with the latest crippling shortfall. The new budget blueprint — the governor’s last before term limits force him from office — comes after the state’s epic financial problems have already become a target of ridicule around the world. Even after $60 billion in program cuts, tax increases and federal stimulus money over the last year, California’s books are so far out of balance that the state is once again in danger of having to issue IOUs…”
  • Budget proposal ‘disaster’ for the poor, By Troy Anderson, January 12, 2010, Los Angeles Daily News: “The governor’s proposed state budget could mean a record loss of nearly $4 billion for Los Angeles County, putting hundreds of thousands of needy residents at risk of losing welfare checks, in-home care, health care and other services, officials said Tuesday. ‘It’s very stressful for us when we hear the state budget has a $20 billion shortfall,’ said Gloria Molina, who chairs the Board of Supervisors. ‘We know there is going to be an awful lot of cuts made for many of our services… That is terrifying to all of us.’ Under Gov. Arnold Schwarzenegger’s proposed budget, Molina said, nearly 400,000 county welfare recipients could lose $1 billion in benefits…”
  • Social services cuts worry Bangor, Portland, By Glenn Adams (AP), January 12, 2010, Bangor Daily News: “Lawmakers expressed horror over proposed cuts in the state program that helps some of the most desperate Mainers on Monday as they began reviewing potential social service cuts recommended by Gov. John Baldacci’s administration. The program is called general assistance and it serves as a last resort for the homeless, the hungry and ‘those out on the street,’ Sen. Joseph Brannigan said during a hearing before two committees assessing numerous cuts. The cuts in Baldacci’s supplemental two-year budget seek to address a $438 million gap between revenues and expenses…”