Advocates for the poor are calling Governor's Schwarzenegger's proposed budget cuts the worst prescription for California's economy. Advocates argue tax increases would cause less damage to the state.
Governor Schwarzenegger wants to cut Medi-Cal spending, and eliminate California's welfare program known as CalWORKS.
Frank Mecca heads up the California Welfare Director's Association. He says just axing CalWORKS alone would hurt the state's economy.
"We were looking at a full percentage point increase in the unemployment rate," Mecca says. "We're looking at over a $100 million of lost sales tax revenue. And impacts that would make recovery from the current economy more difficult, not less difficult."
Supporters of the governor's plan argue tax increases would worsen the recession. Critics claim health and welfare cuts have four times the negative impact of high income tax hikes.
