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Governor Talks About State Budget In San Diego

POSTED: 4:06 pm PDT August 29, 2008
UPDATED: 6:21 pm PDT August 29, 2008

Gov. Arnold Schwarzenegger joined a coalition of officials from around San Diego County and the region Friday to press the California Legislature to pass a balanced state budget without raiding funds designated for local use.

The state's budget is 60 days overdue as a stalemate between state Republicans and Democrats draws on over how to close a multibillion-dollar spending gap.

"Let's fix the budget problem once and for all," Schwarzenegger said outside the County Administration Center. "Let's not kick the can down the alley and let someone else be responsible for it.

"This is why I say it's fiscally irresponsible to take money from local government or to borrow money from transportation in order to close that hole that we have -- that $15 billion deficit," he said.

The governor was joined by more than a dozen elected officials, public safety leaders, physicians and nurses from around the region to oppose any effort by the state to borrow money designated for local governments to help close the state's budget deficit.

"We don't want to see any borrowing done to balance this budget," county Supervisor Greg Cox said. "Those games have been played for far, far too long in Sacramento. It's time for the Legislature to collective deal with the problem they have at hand and not borrow from the future, not borrow from our children and not borrow from our grandchildren."

Cox said the state Assembly is considering shifting about $70 million in gasoline sales tax revenue and other transportation funds away from the San Diego region.

Gary Wyatt, a county supervisor from Imperial County and vice president of the California State Association of Counties, said the economic downturn has placed a greater demand on county services, and any borrowing from the state would be an added burden.

"We urge the Legislature to make responsible budget decisions now and balance the budget now without borrowing from local government and transportation funds," Wyatt said.

He said the state legislators need to uphold the passage of Proposition 1A in 2006 that prevents the state from shifting gasoline sales tax funds away from transportation funds.

Schwarzenegger said a $12.5 billion "rainy day" fund needs to be created so that the state does not have to borrow revenues slated for local governments during future budget deficits.

"It is time for politicians up there to stop putting the people through a budget roller-coaster ride every time the economy goes down," Schwarzenegger said.

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