This week, Governor Arnold Schwarzenegger submitted a revised budget which saves state parks and some school funding, but makes drastic cuts to health and welfare programs for the disadvantaged. The controversial plan would borrow against future lottery revenue to fill the state’s projected $15 billion deficit and create a $2 billion rainy day fund. The lottery proposal would go before the public for a vote on the November ballot. If the measure fails, the state would automatically impose a one cent sales tax increase for three years. The plan, which the Assembly must approve by June 15th, was quickly criticized by both Republicans and Democrats.
With:
John Myers.
Airdate: May 16, 2008.
Additional Resources
New Schwarzenegger budget for California would divert gas taxes
Evan Halper and Patrick McGreevy, Los Angeles Times
Governor's big gamble with the budget
Matthew Yi,Cecilia Vega, Chronicle
Tough budget decision shifted to voters
Kevin Yamamura, Sac Bee
'Painful' changes in state budget
Mike Zapler, Mercury News
