Council News

California Gov. Schwarzenegger attends Santa Barbara Council meeting... (photos) (Media Advisory)

Gov. Arnold Schwarzenegger, appearing at a recent Santa Barbara Council meeting, laid out his plan to control the state's financial deficit.

Speaking before a group of business leaders and elected officials, he compared the budget system to a "roller-coaster." He proposed 10 percent spending reductions to address the $14.5 billion shortfall this year, along with a reform of the budget process.

He emphasized the fact that he is "keeping his promise" not to raise taxes.

"We have to live within our means," he said, noting that California spends around half-a-billion dollars more than it generates each month.

Schwarzenegger said that he is asking agencies to "tighten their budgets and stretch their dollars," wherever practicable.

He blamed (the legislature in) Sacramento, telling the audience that "they spend" everything they get.

Schwarzenegger made his case for budget reform with a three-point plan, including:

• Making midyear spending reductions;

• Tightening controls over spending in the next fiscal year budget by making cuts now; and

• Establishing a "rainy-day" fund -- depositing excess revenues from "fat" years in a protected fund to carry the state through lean years -- through a constitutional amendment.

Karen Crawford, president of the Santa Barbara Council, presented the governor with an official USS Ronald Reagan jacket, on behalf of Capt. Terry Kraft, who asked Crawford to make the presentation on behalf of the ship's officers and crew.

Above photo (and photos on Picasa website) by Debra Oquist.