Gov. Schwarzenegger Notes Federal Funds for California

May 18, 2004

California Governor Schwarzenegger announced on Monday significant progress in his efforts to collect California’s fair share from the federal government.

Since taking office, the Governor has vowed to get California’s fiscal house in order. In addition to passing Propositions 57 and 58, reforming the workers’ compensation system and proposing a balanced budget, a top priority has been working with Washington to get the state’s fair share of federal dollars. After only six months in office, Schwarzenegger has finalized agreements with the federal government that will mean more than $400 million in savings for California.

“I would like to thank the Bush Administration for their willingness to work with me on these very important issues for all Californians,” said Governor Schwarzenegger. “These savings will significantly help to get California back on track, and will mean more money for programs that serve some of California’s most vulnerable populations. I am grateful for this spirit of cooperation, and will continue to work with the federal government to get results for the people of California.”

Among the Details of the Agreements:

– South Central Los Angeles Regional Center – The federal government disallowed federal funding for the facility due to poor fiscal and management controls. The California Department of Developmental Services has worked closely with the center to improve its fiscal accountability to the satisfaction of federal officials and the federal government has allowed payment of nearly $30 million of the disputed claims.

– Total savings for California is estimated at $455 million for fiscal year 2004-05.

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