This Just In — Legislative Analyst Still Tepid About the Budget

The Legislative Analyst’s assessment of the budget signed October 8 on the 100^th day of the fiscal year for which dictates spending, has not changed in its updated summary of the budget for the fiscal year that began July 1.

This new version however includes the $963 million vetoed by Gov. Arnold Schwarzenegger to bolster the state’s reserve account, increasing it from $364 million to $1.3 billion, an amount representing one-twentieth of the size of next year’s shortfall as estimated by the analyst last November.

Among the larger vetoes, elimination of Stage 3 child care starting November to save $256 million.

“This will mean the loss of subsidized child care for approximately 55,000 children from low–income families who formerly received cash aid” through CalWORKs, the state’s welfare program, the analysts says.

The GOP governor cut another $366 million from CalWORKS, by assuming swifter receipt of future federal Temporary Assistance for Needy Families funds.

Elsewhere in the budget, the state expects $5.4 billion in new or federal money of which it has received $1.3 billion.

Also cut by Schwarzenegger was $80 million for child welfare services, $52 million for HIV/AIDS programs, $10 million for health clinics, and $6 million for community–based programs in the Department of Aging.

Also blue-penciled was $133 million for students’ mental health services.

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