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"Our goal is to ensure that all states are treated fairly," she said, meaning little relief is coming, a stated 2009 administration policy. In denying a June 2009 aid request, US Treasury Secretary Tim Geithner said:
"A lot of the burden is going to be on (California) to lay out a path that gets their deficits down to the point where they're going to be able to fund themselves comfortably."
It applies to all states, forcing them to freeze hiring, cut jobs, lower wages, impose sweeping austerity, and erode social services when they're most needed.
In California, the impact on vital ones is stunning. In 2009, public education was decimated by $1.6 billion in the 2008-09 budget, another $4.2 billion for 2009-10, and earlier $11.6 billion in approved cuts. As a result, California ranks last in per-pupil funding with more cuts still coming.
They show up in increased class sizes, fewer textbooks and other materials, teacher layoffs, vital courses eliminated, and fewer school year days. Higher education was also hit hard after the University of California regents hiked tuition by 32%, forcing students to pay over $10,000 annually for what was once free. In addition, faculty member 10% pay cuts were ordered, the result of the number of imposed furloughed days, and students needing aid found most of it cut and not available. Others with awarded grants didn't get them, and 2010 looks worse.
Other social service cuts impacted healthcare, abused and neglected children, those with disabilities, the elderly, the poor, and benefits to the unemployed, California ranking 37th in the nation in the percentage of them getting benefits. In January 2009, its unemployment fund became insolvent because of increased demand. As a result, it borrowed from Washington, and current projections are for another $17.8 billion in 2010, all requiring repayment in 2011 without funds to do it.
As a result, on January 8, Governor Schwarzenegger declared a fiscal emergency in unveiling the $82.9 billion state budget calling for no tax hikes, more pay and social service cuts for the most needy, and a plea to Washington for help, likely to go unheeded.
Hard Times in Michigan
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