SACRAMENTO — California lawmakers began chiseling away at a $20 billion deficit Thursday as part of a special legislative session ordered by Gov. Arnold Schwarzenegger.
Democrats in the Senate started budget votes they said would prevent a cash crisis this spring. But they postponed the hardest decisions on education and social services, which make up the bulk of state spending. The Senate approved cutting the state payroll by 5 percent and trimming spending on inmate health by $811 million. Democrats also pushed through tougher tax collection policies, including a bill that would require out-of-state retailers to collect taxes on items sold to California residents.Proposed measures
In all, Senate Democrats have proposed measures designed to reduce the deficit by more than $5 billion. After approving half the measures Thursday, the Senate put off the tougher votes until Monday, including a change to the state gasoline tax. The Assembly is expected to act on similar measures next week. The Senate on Thursday also approved the initial pieces of a legislative package designed to create or preserve jobs, including a measure that would end three-day-a-month furloughs for tens of thousands of state employees.
It's not clear whether Schwarzenegger will support all the proposals. Democrats, who hold a majority in both houses, began pushing changes on a majority vote without Republican support.
Republicans said much of the Democrats' package involved accounting tricks that don't address the structural deficit. Democrats are hoping an economic recovery could help narrow the size of the budget gap. The state Finance Department reported January revenues came in $1.4 billion above the governor's budget forecast. Still
