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SEIU and the California Budget: No More Cuts and Gimmicks!


December 15, 2008
Statement of Courtni Pugh, Executive Director, SEIU California State Council, on today’s GOP budget plan release

SEIU: GOP Budget Proposal Is “Reckless” and “Will Hurt Our Economy”

Now, more than ever, Californians need a budget that will preserve the building blocks of a good, middle-class life in California: education, health care, home care and the most basic services for those who fall on hard times.

Unfortunately, today the minority party released a package of non solutions with no credibility, a reckless plan that will hurt our economy and jeopardize our future.

The minority party has made it crystal clear what they stand for: taking rights away from workers, denying our kids the education they need to succeed, forcing seniors and people with disabilities out of their homes, and eliminating human services that protect all of us during these challenging times. Californians do not support this extreme agenda.

In a time of crisis, we need leaders with a constructive vision, not the same old failed strategies and cuts. After $10 billion in cuts already enacted for FY 08-09, working families won't stand by and watch the things we care about — our schools, our health care, and our communities — be destroyed by politics as usual.


December 2, 2008
SEIU  California State Council on the State Budget

As new legislators begin 1st day of work, SEIU proposes a budget to rebuild the Middle Class
$14 billion in stable state revenues and $15 billion federal stimulus will avoid further cuts to kids, seniors, and families; boost economic recovery

As a new class of legislators begins work amidst unprecedented economic and budget challenges, SEIU California State Council today unveiled A Budget to Rebuild the Middle Class to address California’s $28 billion budget crisis and begin an economic recovery for California’s families after years of devastating state funding cuts. SEIU’s proposal provides a roadmap to economic and budget recovery for California, generating $14 billion in fair, sustainable revenues to support the state’s most critical services for children and families through FY 09-10 and target $15 billion in federal dollars to stimulate the state’s stagnant economy.
 
“As a new class of legislators gets to work in Sacramento, our kids, seniors, and working families are still reeling from $16 billion in budget cuts to critical services. It’s time for our Legislators to rise to the challenge voter’s issued in November and say ‘yes, we can’ protect schools and health care. We call on the Governor and Legislative leaders to adopt SEIU’s Budget to Rebuild the Middle-Class,” said Jeanine Meyer Rodriguez, Strategic Campaign Director for SEIU California State Council.

SEIU’s Budget to Rebuild the Middle Class will:

  • Preserve the building blocks of a good, middle-class life for California’s families by protecting health care, education, and the most basic services for those who fall on hard times.
  • Protect state and local economies by avoiding further cuts to education, health care, home care, and child care which will deepen the economic crisis.
  • Make taxes more fair by ensuring that new revenue comes from those who can afford it, targets luxury and discretionary items, or closes unfair loopholes.
  • Target a $15 billion federal stimulus package to provide the support that our families desperately need to begin rebuilding today, and that our economy needs to prosper in the future.

“There are many sources of potential revenue to close the widening budget gap; the ones presented in this proposal are designed to be the most effective while protecting the fragile economy during the current economic downturn,” said Lenny Goldberg, Executive Director, California Tax Reform Association.

The $10.3 billion in state budget cuts already enacted for FY 08-09 have added to the fiscal strain on California’s families, erasing once-secure jobs and forcing unthinkable decisions: seniors forced to decide between food and medicine; schools forced to forego text books or reduce seats on our kids’ classrooms; families forced to choose between working to provide for their children or staying home to care for an elderly parent.

At a rally today the working men and women of SEIU asked the Governor and Legislative Leaders to balance the devastating cuts already made this year with fair revenues and aggressive pursuit of federal assistance.  SEIU’s budget proposal includes a limited expansion of the state’s Vehicle License Fee (VLF), which would protect middle-class families by exempting the first $20,000 in vehicle value; restoration of the upper income tax brackets enacted by Governors Reagan and Wilson, adoption of Governor Schwarzenegger’s oil severance and alcohol tax proposals and the Governor’s proposal to broaden the sales tax to include discretionary services such as entertainment.

SEIU’s proposed federal stimulus package would get our people back to work now and invest in long-term economic success for California families by:

  • Increasing the federal match for California health care dollars
  • Kick-starting hospital retrofits and local government infrastructure projects
  • Funding federal special education obligations
  • Investing in workforce development and a competitive resurgence by restoring worker training and opening more seats in our public colleges and universities.

“The hard-working men and women of California sent a very clear message in November: we want change, and we want our government to roll up its sleeves and be a strong part of the solution,” said SEIU’s Meyer-Rodriguez.  “By adopting SEIU’s Budget to Rebuild California’s Middle Class, our state’s leaders can begin to repair the damage done by devastating budget cuts in recent years and renew confidence in our government and our economy.”

Today’s action comes on the heels of SEIU’s launch of an advertising campaign demanding that elected leaders heed California voters’ call for change.  Saying “small change won’t fill a massive deficit,” the new ads tell legislators that real change means adopting a budget with stable revenue to prevent more cuts to education and health care.



November 6, 2008
Statement of Courtni Pugh, Executive Director, SEIU California State Council, on the Governor's $11.2 billion budget deficit announcement and call for a special legislative session

After California Voters Call Loudly for Change, SEIU Says Try Something New: Permanent Revenues to Protect Our State

The Governor's announcement today that the state's estimated budget deficit has grown to $11.2 billion paints a stark picture of what California will look like if our leaders do not step forward to reverse the startling declines in investment in education, health care, infrastructure and other critical needs.

While the governor has finally, correctly, attributed the looming budget gap to insufficient revenues, he is unfortunately again using the budget crisis to attack the hard-working men and women who are California’s economic engine.  Cutting the pay of thousands of workers at this time of economic insecurity is the wrong thing to do for working families and for our economy.

And at the same time the Governor says families need more help paying their mortgages, he proposes devastating cuts to public services which will make it harder for families to keep a roof over their heads, put food on the table, and contribute to an economy that is already on its knees.

Tuesday, California voters spoke loudly and clearly for change to this "business as usual" approach to our persistent budget crisis that forces kids, seniors, and people with disabilities to pay the price for political gridlock year after year. 

These times represent a test of leadership. There is no question that the right course for our people and our economy must include real, sustainable revenues to protect seniors, children, families, and people with disabilities.  Leading economists have stated clearly that during this serious economic downturn, a tax increase that invests in education, infrastructure, and other vital services is preferable to cutting government spending which will further contract our economy. 

During a contraction, it's especially critical for state government to continue to function, support local economies, invest in our future, and maintain confidence. We cannot do that without new permanent revenues.


October 8, 2008
Statement of Courtni Pugh, Executive Director, SEIU California State Council, on meeting over state budget

As Governor & Leaders Reconvene, SEIU Urges Facing Our Problems Head On

We simply can’t afford a repeat of the most recent budget impasse. This is a critical time for our state and the nation. It calls for leadership.

In a downturn, families need more support, not less.  Californians cannot take more cuts to our schools, our health care or other vital services. That will require new, real revenue. Less money moving through our economy means less spending, and fewer jobs in the private and public sectors.

We can’t allow our state leaders to run away from our problems again.


October 7, 2008
Statement of Courtni Pugh, Executive Director, SEIU California State Council, on the new revenue numbers released by Controller Chiang

New Numbers Paint Picture of Irresponsibility

After less than a month, to no one’s surprise, California’s irresponsible, gimmick-filled budget is falling apart.

If the Governor and legislators had crafted real solutions to generate lasting revenues, we wouldn’t be facing a problem of this scale.

Instead, they chose to make deep cuts, paper over the deficit that still remained, rely on accounting tricks and hocus-pocus projections, and hope that it would all just go away.

Well, the deficit is back—and with a vengeance. Legislators will need to lead now and stand up for California’s future.


September 25, 2008
SEIU  California State Council on the State Budget

Late & Fake = Business As Usual...

But "Reforms" and Tax Cuts = Permanent Problems and Perpetual Cuts

On September 23, the Governor signed a budget 85 days late and 9 billion short. It underfunds and undervalues our schools, health care and other vital services. Like most failed budgets of late, it's full of gimmicks and borrowing and steals money from our future. Instead of real and permanent budget solutions, the people of California got real and permanent deficits.

Sound extreme? There's more... permanent tax cuts for corporations AND permanent rules on spending that make it nearly impossible to restore the more than $14 billion in cuts the Governor and the Legislature made over the last three budgets. So that means one more thing would be permanent ... the cuts.

Any way you look at it, it's a bad budget. But there's still hope—voters get to decide on the spending rules in a special election next year. SEIU plans an aggressive campaign that will put our state on a sound fiscal path that honors the values of California's working families. Read more.

Deep Cuts, And Only Temporary Protection for Vital Services Despite the big losses and deep cuts, SEIU members and our allies were able to protect -- for now -- programs that had been targeted by the Governor and Republican legislators. Read more.

We are at a crossroads

It is clear that the rules of the game are loaded against working families in Sacramento. If we don't take action over the coming months we are looking at a very bleak future. Right now we are doing an analysis of what went wrong with this budget battle and how we can change the rules of the game next time. That includes creating accountability for legislators on both sides of the aisle.

SEIU Won't Quit Fighting for Permanent Budget Solutions

This year's budget reveals how badly the system is broken. We need to take a hard look at all the obstacles and CHANGE THE RULES OF THE GAME like the two thirds vote requirement to pass a budget, or the way legislative districts are drawn so that we see less partisanship and polarization in the Capitol.

In the meantime, it doesn't take a fortuneteller to read what's in the cards...more budget battles in our future. This year's budget was built on a house of cards that will fall apart very soon.

As SEIU California State Council Executive Director Courtni Pugh put it: "SEIU members will continue to fight for real solutions. We plan to fix our chronic deficit and the problems that cause it. Because of this irresponsible deal, our job just got a lot bigger."

Bigger — but not impossible — especially if all of us who share a vision of fixing California's problems and investing in our future can unite and work together. Our families, our children, and our communities depend on our success.


September 23, 2008
Statement of Courtni Pugh, Executive Director, SEIU  California State Council

Governor Demonstrates How He’d Use Additional Power: Poorly

Today, the Governor used a sharp blue pencil to poke California’s most vulnerable citizens in the eye. The heartless and unnecessary line item cuts to struggling families and vulnerable seniors show how he would use the unilateral authority he’s asking voters to give him next year: poorly.

At a time when the economy is sinking and more and more families need help, the Governor pulls the rug out from underneath them.

This final flourish of disregard for the people of California reflects the Governor’s entire approach to the budget all year. School children, families that need health care, seniors and children who are suffering from abuse, and many other vulnerable Californians have been his targets. Not once did he propose that oil companies or his wealthy friends pay their fair share.

We don’t believe the people of California support balancing the budget entirely on the backs of hard-working and needy families. Next year, as we decide whether to give the Governor unilateral cutting authority, voters will have the final say.


September 18, 2008
Statement of Courtni Pugh, Executive Director, SEIU  California State Council

Budget Deal Robs Our Future

The budget deal is the worst in memory. It robs from our future. It relies on irresponsible gimmicks and tricks. It provides no real solutions. And it makes damaging cuts to education and health care.

The 2/3 budget vote rule has produced years of bad budgets, but this budget deal does permanent damage. It adds more bad rules to our Constitution that will haunt future budgets for generations. These rules will force us to make perpetual cuts to education, health care, and other vital services and will block any progress.

The legislature and the Governor have sold out the future of this state in exchange for a house of cards that will collapse in a matter of months. Without real revenue, the deal perpetuates the fiction that we don’t have to pay for the services we want.

SEIU’s 700,000 members in CA will continue to fight for real solutions. We will work to fix our chronic deficit and the problems that cause it. Because of this irresponsible deal, our job just got a lot bigger.


September 16, 2008
Statement of Courtni Pugh, Executive Director, SEIU  California State Council

Vetoed: For the Wrong Reasons

The Governor has plenty of reasons to veto the mess the legislature sent him: it offers no real solutions; it creates new problems with corporate tax loopholes and cuts, and it will do real damage to our schools. This failed budget is the direct the result of a budget process that must be fixed, especially the 2/3 vote requirement.

But one of the Governor’s primary reasons for the veto is the one thing the legislature got right. It rejected the Governor’s most rigid future spending and savings rules.

The Governor’s demand, which, in essence, is a cap, would cause schools, health care, home care, higher education, and other vital services to face a future of relentless, deep, ongoing cuts. SEIU’s 700,000 members support a responsible budget with enough new, real revenue to avoid deep cuts to these vital services.


September 15, 2008
Statement of Courtni Pugh, Executive Director, SEIU  California State Council

Budget Deal Fails to Provide Real Solutions

This budget is a failure, and the lion’s share of the blame lies with our 2/3 budget vote requirement, which allows an ideologically driven minority to veto the majority’s will.

California faced a crisis this year. We needed our legislators to step up, be realistic, and make a practical compromise that included new revenue. Instead, inflexible Republicans gave us a record-breaking deadlock that ended only with this deeply disappointing budget of gimmicks, future borrowing, and devastating cuts.

As a result, schools and health care, already chronically underfunded, will be cut, and California’s families and communities will suffer. This budget takes $3 billion away from schools, and approximately $1.4 billion from Health and Human Services. A quarter of a million children will lose health care.

And at a time of economic insecurity, when our safety net needs to be strengthened, we continue to shred the basic services that people need to survive hard times. Cutting back on the workers who process claims Medi-Cal and food stamps will result in higher caseloads, longer wait times and untold hardship.

The one-time revenue gimmicks in this budget don’t solve our long term structural deficit and could leave us with a huge hole in the budget for next year.

In fact, some of these gimmicks make things much worse because they include future tax cuts and new permanent loopholes for corporations that will cost Californians billions into the future.

This year’s budget process resulted in no solutions, created new problems, and leaves us facing another deadlock next year.


September 13, 2008
Statement of Courtni Pugh, Executive Director, SEIU  California State Council

SEIU Has Not Said It is “OK with Borrowing”

Contrary to reports in today’s Sacramento Bee quoting Senator Perata, SEIU has not said that it is ‘Okay with borrowing.’ In fact, our record on this issue is clear and has been consistent throughout this long budget struggle.

We need real solutions to our budget problem, not band-aids and temporary get-out-of-town fixes. That means new, ongoing revenue sufficient to protect California’s children, seniors, and families from cuts so deep they  would do irreversible damage to education, health care, home care, and other vital services.