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THE INDEX OF FISCAL CONSERVATISM A Guide to the Candidates’ Commitment to Cutting Spending

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THE INDEX OF FISCAL CONSERVATISM Specific Spending Cuts Proposed by the Candidates for Governor

0

7.5

15

22.5

30

Tom CampbellSteve Poizner

Meg Whitman

FY 2009 FY 2010

$24.02 billion*

$3.02 billion $3 billion

* low estimate

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SPECIFIC SPENDING CUTS:CAMPBELL LEADS

FY 2009: $12.7 billion = Reductions in welfare and socialspending bringing California in line with the national average

FY 2009: $2.7 billion = State employee give-backs or furloughs

FY 2010: $8.62 to $13.36 billion = Purchase health insuranceon the open market for Medi-Cal and Healthy Families beneficiaries

A 10% to 15.5% reduction in the cost of government in thecurrent fiscal year

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FISCAL YEAR 2009 BUDGET May 17, 2009: Tom Campbell announces $15.4 billion in cuts tothe state budget, releasing a specific, detailed plan for doing so.

May 18, 2009: At Sacramento Press Club debate, Steve Poiznerrepeatedly refuses to identify a single dime in spending cuts. “I’mrunning for Governor, not chief accountant,” he said at one point,and at another, “It’s not a list of cuts, it’s a process.”

Meg Whitman does not attend the debate. In FY 2009, Whitmancalled for firing 40,000 state employees, with an estimated savingsof $3 billion. Later, she said they would be eliminated by attrition.

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FISCAL YEAR 2010 BUDGET

October 8, 2009: Calling attention to a likely $3 billionshortfall in the current state budget, by the end of thisDecember, and a likely 8 billion dollar gap by next July, TomCampbell identified savings from the state Medi-Cal and Healthy Families accounts of from $8.62 to $13.36 billion.

These savings amount to from 10% to 15.5% budget cuts in a single year.

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FISCAL YEAR 2010 BUDGET October 19, 2009: Steve Poizner announces his plan to cut state expenditure 10% over two years.

That is, 5% over a single year, less than one half what Campbell proposes.

The cuts proposed by Poizner were$3.85 billion over two years = $1.925 billion in a single year by "Top Down Review and Overhaul."The actual cuts are not specifically identified. Rather, this is akin to the claim other candidates have madethat they will reduce "waste, fraud, and abuse," without saying how.

$3.35 billion over two years = $1.675 billion in a single year by lowering eligibility for CalWorks.

$1.59 billion over two years = $795 million in a single year by reducing MediCal costs.$1.09 billion over two years = $545 million in a single year by reducing prison health care costs.

Using Poizner’s own numbers, the savings are $4.94 billion in one year.

However, excluding the claim for which no specifics are given, "Top Down Review and Overhaul,” thetotal is $3.02 billion, approximately 3.5% of the budget.

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FISCAL YEAR 2010 BUDGET

September 22, 2009: In formally announcing her candidacy,Meg Whitman announces "As I committed to in February, if elected, I will identify and implement at least $15 billion inpermanent spending cuts from the state budget." No detail is

provided; the statement says the spending cuts will be identified when she is Governor.