The start of a legislative session is always filled with hope, some drama and a little trepidation. In the coming months --- and the two-year session to follow --- our representatives will script either an uplifting storyline or remake the same old soap opera.

The plot line includes a budget proposal which cuts assistance for children significantly (a questionable call at best); expansive health care proposals to cover all or most Californians; and an unjust, deteriorating prison system.

Re-elected by one of the largest margins in California history, Gov. Arnold Schwarzenegger is fighting to restore the Golden State's luster, and calling for a new spirit of cooperation which he named "post-partisanship." Give him credit for vision.

His most ambitious --- and admirable --- goal is revamping California's health insurance system. With 6.5 million residents uninsured, the effort is long overdue.

Two Democrats, Speaker Fabian Nuņez, and Don Perata, Senate President Pro-tem, offer alternatives. While differing on critical details, the governor's plan is sometimes more "progressive" than the Democrats' versions.

Complicating things, California has fallen from the fifth-largest economy in the world, to the seventh or eighth. Very limiting budget procedures, funds restricted to specific purposes (often by voters), federal mandates, and a built-in deficit are some of the factors contributing to our decline.

Days before the governor announced his insurance proposal he also launched a trial balloon --- removing thousands of children from cash assistance. The contrast is startling if not somewhat puzzling.

Cutting aid to children is not due to something the children have done, but something their parents have not done --- find work. Last year's Federal Deficit Reduction Act --- where tax cuts masqueraded as deficit reduction --- changed many critical regulations and definitions. Among them, the definition of work.

CalWORKS --- our state's assistance program --- is geared toward getting people to work. When they don't, a series of sanctions take effect, culminating in an end to all aid after 60 months. Never in California, however, has assistance to children been stopped.

Despite overwhelming evidence to the contrary, the governor is apparently betting that such a move will encourage people to work. The flaw in this approach stems from a misunderstanding of poverty.

Roughly one-third of people on assistance face some unforeseen circumstance. They have the skills to better their situation and will do so with a little help.

Another third have deeper problems. They were born into generational poverty --- growing up in poor families, not learning basic life or work skills. With the proper help, they too can leave poverty behind, but it requires more time and addressing issues in society --- such as discrimination --- that perpetuate generational poverty.

The final third are poor because of mental health or chemical abuse. They may have lifelong problems that defy simple solutions. Many of those on the street are in this final category and, sadly, many are veterans. They often have children, sometimes being raised by aging and struggling grandparents.

In any case, why punish the children? In none of these circumstances will doing so encourage people to work. Those with the skills to leave poverty need no more incentive.

Generational poverty may actually increase, because these people who need more help will find it harder to get. Their children may be condemned to the same fate as their parents. And the final group need far more help than threatening their children's wellbeing.

Many elements of the governor's budget cuts are a stark contrast to his health care plan.

To his great credit, Gov. Schwarzenegger has called for covering all children regardless of legal status. He also requires more of insurance companies than either Democratic proposal. And he requires employers to pitch in to cover those who cannot afford insurance. (A recent court ruling calls into question employer mandates.)

To their credit, some business leaders have not only embraced this concept but said it does not go far enough. Why? They recognize the severe community health threat and expense of having 6.5 million uninsured residents of California.

But like any good drama, this one has a twist --- prisons. The cost of new prisons and hospitals needed to remedy an unjust situation will be tremendous. It will complicate all political decisions in the coming months.

Who are the heroes or villains will be determined with the passage of the budget this summer. The health care debate is likely to play out over the two years of the legislative session.

The efforts to insure all Californians and grapple with the budget maze will not be easy --- nor will it make all people happy. But if we can improve the situation, it will be a large step to restoring the luster of California, and a resolution to a drama that will benefit everyone.

Steve Pehanich, executive director of Catholic Charities of California, deals with public policy issues in Sacramento, supporting the 12 Catholic Charities agencies in the state. Email him at spehanich@cactholic.org.