Skip to Content

Governator Schwarzenegger attempts to terminate welfare

More
Text SizeAAA

Filed under: Budgets, Recession, Stimulate US, Recession Diaries

While indicating that he has no other choice, California Gov. Arnold Schwarzenegger has proposed the complete elimination of cash assistance payments for that state's poorest individuals. Needless to say, the proposal has met with stiff resistance.

According to a story released by MercuryNews.com, by rejecting a $3.7 billion federal, welfare-to-work block grant, Schwarzenegger's plan would free his state from paying $1.8 billion in matching funds. However, one additional consideration is that California would also lose $600 million in federal stimulus funds if it rejected the welfare grant.

On it's face, the entire idea seems quite foolish. Simply put, by saving the state budget $1.8 billion, the governor's plan strips the California economy of a much needed cash infusion of $4.3 billion. Most importantly, all that money would be withheld from the poorest segments of society and from infrastructure projects. Those are arguably the two areas which need money the most.

The Mercury News quoted former Assemblywoman Dion Aroner, creator of California's welfare-to-work program, as stating "...it's hard for me to believe that the Legislature would ever agree to that -- or that this is a serious proposal even from this governor."

At this point, it appears that Schwarzenegger's proposal has all but dropped dead. Even liberal democrats have come forward to assert that there must be better ways to trim the state's budget. The general consensus is that this particular gambit would cause much more hardship than it would be worth.

In the mean time, Schwarzenegger has warned that this is just the beginning, as he undertakes the task of tweaking a budget which is $24 billion in the red.

It's my opinion that if the Governator was to forward too many more ideas similar to this one, he himself might want to "get to da choppa" in one big hurry.
Subscribe to Walletpop

Reader Comments (Page 1 of 1)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

Ensuring a Safe Manicure and Pedicure
Millions of women (and a few men) visit nail salons regularly to have their nails done. ...
Lalique and Haviland Open Flagship Boutique
Two of the most prestigious brands in the luxury industry have joined forces to open a flagship ...

Megan Angelo
Megan Angelo Filed under: Shopping

Your own personal shopper -- free -- at J. Crew

The phrase "personal shopper" inherently has a certain air of snobbery about it, calling to mind that wealthy aunt who always bought the best Christmas gifts but whose over-the-top get-ups elicited ...
Julia Scott
Julia Scott Filed under: Bargains, Saving Money, Bargain Babe

Lots more coupons coming to WalletPop!

I'm a new blogger at Wallet Pop and my name is Julia. My goal is to post the best coupons for all the everyday stuff you buy, like groceries, clothes, and meals out. The little stuff ads up, after ...
Julia Scott
Julia Scott Filed under: Bargain Babe

Free diapers for an entire year

Sign up to receive emails and news from Pampers.com and you could win an ENTIRE YEAR of free diapers. That means your bundle of joy just got a lot cheaper. Why join Pampers? You'll get rewards ...
Laura Heller
Laura Heller Filed under: Shopping, Technology

DVD wars come to online retailers

First books, now movies, the price wars between the biggest retailers just keep getting hotter. Walmart, Target and Amazon are all slashing pre-order pricing on some hot new releases like "Harry ...

Headlines from WalletPop Partners