SF gauging impact of new state budget 

How deep the state cuts will run through San Francisco’s budget is being analyzed after Gov. Arnold Schwarzenegger released the May revise last week, showing a much more bleak picture with deep cuts to welfare.

“We are drilling down on each department,” Newsom said. “It’s really bad.”

Schwarzenegger’s revised budget increases funding for the University of California and California State University systems, but makes cuts to social services and health programs — especially those for low-income residents.

Newsom, however, said it’s doubtful that the state budget will remain as proposed.

“If all of the cuts were allowed to stand, I mean, this would have serious consequences in The City and I know the governor knows that,” Newsom said. “So the question is: How do you gauge where the Legislature will go in terms of blowing back on some of these cuts?”

Greg Wagner, Newsom’s budget adviser, said he’s crunching the numbers to see how The City might have to revise its budget in the wake of these cuts, and expects to have a revised figure this week.

The mayor has until June 1 to submit a balanced budget to the Board of Supervisors. He has worked to help close a $483 million shortfall for next fiscal year.


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