California budget hole update

California budget hole update:

"Gov. Arnold Schwarzenegger is schmoozing with the federal government again this week as he tries to pry more money. Meanwhile, the state Legislature made its first budget cut for the fiscal year and is still debating the tax system.


Another update on California’s $20 billion budget hole is right here.


$2 billion cut: The State Legislature has made its first decision in budget cuts this fiscal year."

According to The San Jose Mercury News, the cuts to prisons and state worker pay were approved by the State Senate Monday after the State Assembly approved of it last week. It will now go to Gov. Schwarzenegger’s desk for a signature.

“Up against a deadline to close at least part of the state’s $19.9 billion deficit, the California Legislature sent more than $2 billion in cuts to Gov. Arnold Schwarzenegger on Monday. But they held off on approving the rest of a package that punts most of the state’s budget pain until later this year.

In low-key votes, lawmakers slashed nearly $1 billion from the state’s prison system, chiefly from inmates’ medical care, and approved a $540 million reduction in state workers’ paychecks. The state Senate had approved those measures last week, and on Monday they passed the Assembly on party-line votes.”

Party blame is still existent in Sacramento as Assembly Minority Leader Martin Garrick (R-Carlsbad) told the paper, “the Democrats seem intent on avoiding tough decisions.”

Controversial taxes: California’s taxing system and any ideas surrounding it remains a hot issue. As of Monday, Democrats are reconsidering their plan to revamp how the gas tax is collected after Schwarzenegger threatened to veto it.

Read more: http://www.sdnn.com/sandiego/2010-02-23/politics-city-county-government/california-budget-politics-city-county-government/california-budget-crisis-diaries-first-cuts-and-stalled-tax-changes#ixzz0gSeEM9Z0