Insurance Surcharge Proposed to Fund Calif. Fire Suppression Efforts

California Gov. Arnold Schwarzenegger has submitted to the Legislature his proposed 2010-11 budget – calling for “greater reductions in nearly every aspect of state government than were necessary in 2009.”

Among the proposed cuts is a decrease of $32.8 million for CAL FIRE’s emergency fire costs. He noted that based on expenditures to date, CAL FIRE’s emergency fire suppression expenditures are estimated to be $255.8 million in 2009. In 2010, he proposed a total of $223 million, which he said reflects the historical average of emergency firefighting costs over the past five years and additional federal reimbursements.

Additionally, Gov. Schwarzenegger suggested reducing funding CAL FIRE’s Fire Protection Program by $200 million from the state’s General Fund, and replacing the funding with revenue generated from a 4.8 percent statewide surcharge on all residential and commercial property insurance.

Beginning in 2011, the Emergency Response Initiative will provide funding to enhance the state’s emergency response capabilities, including enhancements for CAL FIRE, the California Emergency Management Agency, the Military Department, and assistance to local first response agencies in support of the state’s mutual aid system, he said.

Schwarzenegger said he was suggesting cuts because the state is in a “midst of a fiscal crisis,” and was making “every effort to maintain essential services for Californians who need them most.”

“With our national economy still struggling to recover, California, like most other states, must confront an additional budget gap of nearly $20 billion,” he said in a statement. “In many ways, the decisions that will be necessary to close this gap will be even more challenging – and far more difficult.”

Yet he said his budget proposal protects education, including higher education, from additional deep cuts. He suggested a re-prioritization of funds away from administration and into the classroom, and away from prisons and into universities.

To view more of Schwarzenegger’s 2010-2011 budget details, visit www.ebudget.ca.gov.