Governator Schwarzenegger attempts to terminate welfare
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.