“We know the Republicans in Washington, D.C., will be issuing some major federal budget cut proposals in the next weeks,” said Chris Hoene, executive director of the California Budget & Policy Center. As a result, “we’re expecting a pretty cautious (state budget from Brown) because of the high degree of uncertainty.”
Worse, if Republicans in Washington slash Medicaid funding in 2018, the state could lose between $25 billion and $50 billion, said Chris Hoene, executive director of the California Budget & Policy Center, a progressive think tank in Sacramento. “The reality is California could not afford the scale of the cuts the GOP has been proposing,” Hoene said. “That’s going to put state leaders in a position of deciding who gets state services and how do they fund that.”
Chris Hoene, executive director of the California Budget & Policy Center, said that, at the least, the de facto elimination of the state and local tax deduction is “particularly bad for seniors” who won’t benefit from new credits aimed at helping families with young children. He calls the Republican tax plan a deliberate attack on states with more generous social programs.
The bill also adds more than a trillion dollars to the deficit, which could lead to cuts in other programs, noted Steven Bliss, who studied the proposal for the California Budget & Policy Center. “People are paying attention to what the bill would do,” Bliss said. “You’re looking at major spending cuts to core public services in the next few years to provide huge tax breaks for wealthy households and corporations.”
Already, rules that are in place to control deficits are projected to force a $25-billion cut to Medicare in 2018 if the tax plan passes and Congress doesn’t stop the health cuts. “This is potentially damaging to the fiscal health of the state,” said Chris Hoene, executive director of the California Budget & Policy Center. “The state would have to decide to pick up the tab or reduce the services to those households.”