Politics

LOS ANGELES Gov. Arnold Schwarzenegger attended three church services in Los Angeles Sunday to stump for six statewide ballot propositions on Tuesday's ballot, most of which do not have a prayer of passing, if the polls are to be believed.

Schwarzenegger and Democratic Assembly Speaker Karen Bass of Los Angeles visited West Angeles Church of God in Christ, Second Baptist Church of Los Angeles, and First African Methodist Episcopal Church Sunday morning.

Most of the propositions, proposed by the Legislature, are meant to reduce a $15 billion deficit in the state budget.

The only one that is leading in the polls is Proposition 1F, which would prevent the governor, lawmakers and statewide elected officials from receiving pay raises in years when the state has a deficit.

Schwarzenegger released two revised budgets proposals on Thursday, neither of which would enable the officials to get a raise if the 1F passes as expected.

One of the proposed budget adjustments assumes the propositions pass, but still has a $15 billion deficit. The other assumes the propositions fail, which would result in the budget ballooning to $21 billion, according to the Governor's Office.

Both budgets call for cuts to education, social services and corrections, withholding money for local governments, layoffs for thousands of state workers and selling off some state assets, including the Los Angeles Memorial Coliseum.

Selling off state facilities has drawn fire from many who say the state would get a low return because property values have dropped.

The propositions would slow the growth of the deficit in the short run, but increase debt in out years.

Prop. 1A extends the increase in the state sales tax for one year and increases in the state income and motor vehicle taxes for two years -- both taxes were increased by the Legislature and approved by the governor earlier this year -- while increasing the size of the state's Budget Stabilization ("rainy day") Fund from 5 percent to 12.5 percent of the General Fund. It also gives the governor the power to make midyear spending cuts when revenues fall short of projections.

A portion of the annual deposits into that fund would be dedicated to savings for future economic downturns, and the remainder would be available to fund education, infrastructure, and debt repayment, or for use in a declared emergency.

According to the Legislative Analyst, extending the increased sales tax would result in additional state revenue of roughly $16 billion from 2010-13 and could result in greater state spending on repaying budgetary borrowing and debt, infrastructure projects and temporary tax relief, although in some cases, this would mean less money available for ongoing spending.

Prop. 1B, which would only go into effect only if 1A passes, would transfer 1.5 percent of the state's estimated revenues each year into a fund for schools and community colleges, until $9.3 billion has been deposited in that fund. The $9.3 billion represents funds previously withheld from local school districts and community colleges, and the state would not start repaying the money until 2011-12.

According to the Legislative Analyst, putting off the reimbursements could potentially save up to several billion dollars through June 2011, but cost the state billions of dollars annually thereafter.

Supporters of 1A and 1B include the governor, some conservative Republican lawmakers and nearly all Democratic lawmakers, along with the California Chamber of Commerce and California Teachers Association.

Those opposed include the Howard Jarvis Taxpayers Association, California Federation of Teachers, California Faculty Association, California League of Women Voters and Health Access California.

Prop. 1C, which is called the Lottery Modernization Act, would allow bigger lottery payouts and more marketing to attract more players and more revenue, but end payments to schools from lottery receipts. About $1 billion would be transferred from the General Fund to schools to replace the lost lottery revenue.

It would also allow the state to borrow money from the lottery to address the current budget deficit and reduce the need for additional tax increases and cuts to state programs, and protect funding levels for schools currently provided by lottery revenues, while requiring the state to maintain ownership of the lottery.

According to the Legislative Analyst, the measure would allow the state to borrow $5 billion in lottery proceeds to reduce the deficit in 2009-10, and borrow more money in other years, but the money would have to be paid back in the future.

According to the analyst, the proposition would "make it more difficult to balance future state budgets. This impact would be lessened by potentially higher lottery profits. Additional lottery borrowing would be allowed."

Proposition 1D would temporarily allow the redirection of funds from the state and county First 5 California Children and Families health and human service programs to the general fund and reduce the funding from tobacco taxes that, under Proposition 10, goes for First 5 programs such as health access and school readiness.

According to the analyst, taking money from First 5, which currently has a surplus, would save the state General Fund $608 million in 2009-10 and $268 million annually from 2010-14. The proposition also provides more than $600 million to protect children's programs in hard economic times.

Proposition 1E would amend the Mental Health Services Act to transfer funds, for a two-year period, from mental health programs under that act to pay for mental health services for children and young adults provided through the Early and Periodic Screening, Diagnosis, and Treatment Program, providing more than $225 million in "flexible funding for mental health programs."

The measure would temporarily redirect some money under Proposition 63 -- which was passed by voters in 2004 to create a1 percent surtax on income over $1 million for mental health programs -- to the General Fund.

According to the analyst, the measure would save the state General Fund about $230 million annually for the next two fiscal years, ending June 30, 2011, by redirecting a portion of Proposition 63 funds to an existing state program in place of state General Fund support, while reducing funding available for Proposition 63 community mental health programs.

Prop. 1F is meant to encourage balanced state budgets by preventing elected members of the Legislature and statewide constitutional officers, including the governor, from receiving pay raises in years when the state is running a deficit.

According to the analyst, the measure would result in "minor state savings related to elected state officials' salaries in some cases when the state is expected to end the year with a budget deficit.

Proposition 1F is the only one that is currently ahead in the polls, with the support of more than 70 percent of voters.

Some public employee unions, teachers, mental health professionals and others have opposed most of the propositions, except for 1F, saying cuts should be made in non-essential services, and taxes should not be raised when many people are having economic problems of their own.

Supporters, including the governor, say cuts must be made in major ticket items, such as education, and more revenue must be raised through taxes in the short run to avoid an even bigger crisis in the future.

(© 2008 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)