According to the Washington Post, the top six U.S. banks set aside $74 billion in 2009 for bonuses and other compensation--up $14 billion from last year alone.

In response, SEIU released its own "Top 5 Ways We'd Spend The $74 Billion." Included in the list were: covering the budget shortfalls of 16 states, including California; paying one year's worth of mortgage for over 6 million families, and giving over $5,000 to every single American that's currently unemployed.

Andy Stern, SEIU International President, has this to say about the report:

"As millions of families struggle just to hang onto their homes and get through the next month's bills, the architects of the economic crisis are using our tax dollar bailouts on the kind of bonus money that finances glitzy Upper East Side Penthouses and glamorous Riviera getaways. We can think of better ways to spend $74 billion--and we bet most working Americans can, too.

"We support legislation like the Employee Free Choice Act to create an economy that works for those of us who aren't caviar connoisseurs, but who work hard every day just to put food on the table."

TOP FIVE WAYS WE'D SPEND THAT $74 BILLION

1. We'd Cover the Budget Shortfall in California - and 15 Other States - COMBINED. Everyone has been focused on state budget shortfalls in recent months, with a major focus on California's $26 billion shortfall. Not only could the six banks' bonuses and compensation fill the California gap, but it could also fills shortfalls in Arkansas, Colorado, Indiana, Louisiana, Maine, Missouri, North Carolina, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Texas and Virginia (with a few dollars to spare) combined. [Center on Budget and Policy Priorities, 7/24/09; Wall Street Journal, 7/21/09]
2. We'd Give $5,034 to Every Unemployed American. In June 2009, 14.7 million Americans were unemployed. [Bureau of Labor Statistics, 7/2/09]
3. We'd Cover a Full Year of Health Care for 5.8 Million Families. The average cost of an employer-based family insurance policy in 2008 was $12,680. [Healthreform.gov, accessed 7/27/09].
4. We'd Pay the Mortgage and Maintenance Costs of 6.3 Million Homeowners for a Full Year. According to the U.S. Census Bureau, the median monthly housing cost for homeowners, including mortgages and maintenance, was $972. [American Housing Survey for the United States: 2007, issued September 2008]
5. We'd Pay a Year's College Tuition for 11.2 Million Students. For the 2008-09 school year, the average tuition cost at a public four-year college was $6,585. [CollegeBoard.com, accessed 7/27/09]

Big banks set aside $74 billion for bonuses and compensation in 2009. "So far this year, the top six U.S. banks have set aside $74 billion to pay their employees, up from $60 billion in the corresponding period last year." [Washington Post, 7/23/09]

Investment banks paid 60% of all compensation in year-end bonuses in 2008. For investment banks, "the bonus figures are based on estimates that about 60 percent of the compensation and benefits expenses reported by the companies will be paid in year-end bonuses, as occurred in past years." [Bloomberg, 10/27/08]

With a future body count guaranteed to make it a horror film classic, the new California state budget approved by legislators on Friday puts an end to the endless "debate" that's been causing debilitating migraines even in those who don't suffer them.

But the pain is far from over. Governor Arnold Schwarzenegger and his band of loyal lawmakers proved they're no 'girlie-men' with the budget cuts by taking healthcare from the sick and frail and every kind of care from the elderly; by closing schools so kids have nowhere to learn, and after-school programs so they have nowhere else to go. They closed the deficit by privatizing public services and throwing public servants under the bus, while taking money with impudence from those who remain. And if you thought these outcomes were shocking, here's the most shocking thing of all: CA lawmakers managed all of this without taxing corporations one single additional dime.

And no doubt the heads of those corporations will be spending this glorious, victorious weekend with Governor Arnold in his hot tub, smoking their cigars.

The difference
Rapid action by members of SEIU Local 1021, Local 1000 and all the California locals, together with the communities they serve, prevented the outcome of the budget deal from being much worse. "While we don't like the outcome [of this budget], had we not gotten involved it would have been much worse," said SEIU executive vice president Eliseo Medina.

Working closely in collaboration with communities and allies, scores of public events were held all over the state that put a human face on the cuts to home care, health care, CalWORKS, schools, and other public services. All together, SEIU members made 40,000 calls to the Governor and legislators, took part in 400-plus lobby days and sent 100,000 petitions and postcards. The most dramatic difference these efforts made is that new revenues are finally on the table and, against the odds, even made it into the Conference Committee budget. And more significantly, SEIU members, CA activists and allies helped scale back (and lessen in severity) the Governor's worst cuts:

• Home care: In-home Supportive Services (IHSS) will be cut by 20 percent instead of 90 percent.
  
• CalWORKS will be cut 40 percent instead of eliminated entirely.
  
• Healthy Families: The Governor wanted to eliminate the program entirely - instead, it was cut by 50 percent.
  
• Education: Despite deep cuts to education, Proposition 98 was not suspended and legislative safeguards on school outsourcing were protected.
  
• State workers: Workers' pensions and health care were protected, and a fourth furlough day has not been issued like Governor Schwarzenegger threatened.

As California confronts severe budget difficulties in coming months, the war of words, lobby days and public actions are far from over. Middle-class families will continue to challenge state leaders to provide a common sense, balanced approach--even when it requires that our leaders have the courage to stand up to powerful corporate interests. More news and reports on the CA budget can be found from Rough & Tumble and California Budget Project.

Thanks to SEIU Local 1021 for this budget update.

"Governor, we've sacrificed. And we've now reached our limit. We cannot, and will not, allow you to use us as pawns in your political power game," writes SEIU Local 1000 President Yvonne Walker in a letter to Gov. Arnold Schwarzenegger concerning the California union's contract deal and latest budget proposal. The deal -- which includes some concessions -- is now stalled by Republicans in the legislature.

The Governor's proposal seeks to pile on an additional 5 percent pay reduction or fourth furloughed work day for more than 230,000 state workers. The three furlough days per month state workers are already faced with amounts to a roughly 14 percent loss in pay for state workers. Add on 5 percent, and CA's state workers would lose nearly 20 percent of their income.

The letter Local 1000 President Walker delivered to the Governor on Friday afternoon informs Schwarzenegger that the state workers will not take the Governor's threats lying down. "When we negotiated one furlough day monthly, a wage freeze, and other cost saving changes, we were standing up for state services. While we will continue to battle for quality public services, we are now standing up for ourselves as well. We will fight for a common sense budget." (Read President Walker's letter to the governor here).

Last week, Local 1000's Council voted unanimously authorizing the union's officers to seek member support for concerted actions up to and including a strike to protect our members' pay, benefits and job security.

On Tuesday, lawmakers on the California Legislature's joint budget committee refused to cut state worker pay and spared that state's In-Home Support Services the major cut that Gov. Arnold Schwarzenegger proposed as part of his plan to solve the state's $24.3 billion deficit.

Under the governor's budget proposal, IHSS would stand to lose roughly $765 million, resulting in a near-elimination of services for nearly 400,000 people---or 90 percent of the elderly or disabled persons currently receiving care. Making such drastic cuts to California's IHSS program to make up for budgetary shortfalls would also result in more people having to resort to institutional care (nursing homes or other residential institutions)-- which is estimated to be four times more expensive to the State.

Assemblywoman Noreen Evans, who chairs the budget conference committee, reiterated the counter-productiveness of such large cuts to balance the deficit. Such large cuts would have been tantamount to cost shifting, Evans told the San Francisco Chronicle, as people would receive more expensive services at already-strained hospitals and nursing homes. "The imagination runs wild on what would actually happen to these people," said Evans. In contrast, the Conference Committee rejected the Governor's near-elimination of IHSS and passed cuts totaling $117 million, which would eliminate services for slightly less than 10% of those currently enrolled.

California Home Care Workers Rally at the State Capitol to Save the Services they Provide to California's Most Vulnerable: SEIU has played a big role in the movement to fight these cuts, mobilizing support for a fair state budget and balance budget approach that protects middle-class families, seniors, kids, and people with disabilities. Last week, SEIU released a TV ad arguing for a balanced approach and earlier this week, hundreds of home care workers rallied on the grounds of the California State Capital. "Stop home care cuts" was the message home care workers made loud and clear on the grounds of the California State Capital, as care providers from across the state displayed a 625 square-foot sign made up of more than 75,000 postcards calling for an end to the governor's drastic cuts to the In-Home Supportive Services (IHSS) program. In addition to the TV ad campaign, SEIU is encouraging Californians to weigh in for common sense budget at www.commonsense4ca.org.

The bottom line: Laying off state workers from their jobs and cutting their pay on top of the 9.2 percent cut those workers have taken through unpaid furloughs days is not the answer to solving this budget crisis. Neither is shredding California's social safety net and decimating state programs like the welfare-to-work program and health insurance for children. To produce revenue for the state, the legislative budget panel instead approved on Tuesday plans to hike up taxes on oil and tobacco, which would produce an estimated $830 million and $1 billion, respectively, in the coming fiscal year. Repealing a corporate tax break approved only a few months ago would produce another $80 million.

Senate President Pro Tem Darrell Steinberg (D-Sacramento) and Assembly Speaker Karen Bass (D-Los Angeles) said yesterday at their press conference that they "expect that [their] Republican colleagues will be responsible" in helping them pass a "compromise" budget. Lawmakers are meeting with Schwarzenegger again today, and the two Democratic leaders are holding out the possibility that common ground can be reached to put a Legislature-approved plan on how to close the state's deficit by the middle of next week. Highlights of the Legislature's approach to solving the budget crisis at California Progress Report here.

Led in part by SEIU Local 1996 in Puerto Rico, close to 100,000 union members, students, and other activists marched in front of the capitol building in San Juan last week to protest Governor Luis Fortuño's plan to lay off more than 30,000 government employees and suspend public sector collective bargaining rights. Puerto Rico is currently in its fourth year of recession and has an unemployment rate of more than 15 percent. Governor Fortuño has since agreed to meet with representatives from the laid-off workers.

If you think agree that workers should not be made to pay the price for a crisis they did not create, send a letter to the Governor of Puerto Rico in strong protest of these anti-union and anti-public sector measures. Layoffs of public sector employees are set to begin on July 1, so please take action now: Click here to send a letter telling Governor Fortuño not to cut public sector services and jobs.

For more than 18 months, SEIU Local 1000 has been suggesting alternatives to Schwarzenegger's draconian cuts--promoting budget-balancing proposals worth billions of dollars, including the elimination of costly private vendor contracts. Instead, Gov. Schwarzenegger has fought to reduce the budget deficit by laying off 5,000 state workers from agencies supported by the General Fund, along with a 5 percent across-the-board pay cut for state workers. "Why in a time of crisis, [...] wouldn't the governor and the Legislature cut wasteful spending first, especially when state workers can do the work for one-third or even one half less?" questioned Local 1000 President Yvonne Walker.

Finally...Schwarzenegger Agrees with SEIU: Use of Government Vendors needs Revamping
Yesterday, Governor Arnold Schwarzenegger issued an executive order calling for all unfulfilled state department vendor contracts to be canceled through the end of the fiscal year, retroactive to March 1, and to cut outside contracts by 15 percent. Schwarzenegger's recognition of the vendor waste is just the tip of the iceberg. SEIU Local 1000 believes the California government is hiding $34.7 billion in some 13,600 vendor contracts.

Read the study prepared by SEIU Local 1000, which represents 95,000 state government workers, showing California's "hidden branch of government."

This past Saturday, Organizing for America asked that Americans around the country meet to discuss what they believe health care reform should look like. President Obama's organization put out a video that organizers could show their group and use to solicit support for reform and encourage participants to share their stories dealing with the broken health care system. Change that Works California is committed to working with OFA to support the President and make health care available to all Californians.

This past weekend, hundreds of meetings took place in California with thousands of participants around the state. I attended two OFA meetings in the Los Angeles area. On June 6, Mayor Abbe Land, Council member Lindsey Horvath and Deputy to the Mayor, Corri Planck held an OFA meeting at the West Hollywood City Hall. Approximately forty people were in attendance from in and around the city of West Hollywood. Participants watched the President's video; wrote their health care stories and talked about they wanted health reform to look like. Many community members stressed an emphasis on choice, echoing one of the three principals of health reform the President has stressed. Community members also wanted health care reform to encourage preventive treatment.

The second OFA meeting took place at Pasquale's Café in Los Angeles. About 25 folks squeezed into the café and dined on Pizza Michelle (created in honor of the First Lady by Chef Tonino) as they listened to several speakers, including Jack d'Annibale; Ronald Norby, Regional Director of the Veteran's Administration Desert Pacific Health Care Network and Mike Petrold, CA State Field Director for Organizing for America. Community members asked questions about the federal employees health plan and discussed their concerns about health reform. Health care stories were collected and the meeting concluded with a mini phone bank organized by Obama campaign workers from Nevada.

These kick-off meetings along with many others, are the precursors to the June 27 day of action-- check for listings of many of the OFA events around California on this site.

This weekend, about 100 union service employees, policemen and firefighters in Orlando, FL, met to discuss budget cuts which would force them from their jobs. In a city that Forbes magazine recently ranked as the sixth most dangerous city in America, many are questioning how having fewer police offers on the streets of Orlando might affect the safety of citizens.

"It's not the unions causing the crisis. The unions are the ones putting out your fires, responding to your domestic problems, picking up your garbage and making sure clean water comes to your house," said Joshua Willis, a solid waste worker and chair of a SEIU local union in Florida. Read about the 222 workers Mayor Buddy Dyer proposes to lay off in order to fix the Orlando budget deficit.

Workers and community members from Santa Clara County rallied on Tuesday, May 12, to urge the Board to preserve critical county services. What's at stake: a $140 million reduction in public services and some 340 county workers--nurses, mental health counselors, social services workers--who will be affected either by losing their jobs, having their job changed, or reduced work hours.

The crowd of over a hundred people--members from SEIU Local 521, the National Alliance on Mental Illness, Momentum for Mental Health, and other non-profit organizations--gathered just before county officials met for a budget workshop. "We are translators and community workers who link the community with county services," said Rosemary Romo, a Public Health Assistant. "How many administrators are going to sit down and talk with clients who have a mental illness? How many administrators can speak the diverse languages of this community? If we need to cut, start cutting from the top."

Check out the photo slideshow from the rally:

One personal story that captures the essence of what county government was created to do comes from Andreine Golden, who was rescued from the brink seven years ago. Read her story here . More from SEIU Local 521.