Hopes for budget compromise dim amid Calif deficit - Boston.com

Hopes for budget compromise dim amid Calif deficit - Boston.com

Hopes for budget compromise dim amid Calif deficit

By Judy Lin

Associated Press Writer / May 15, 2010

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SACRAMENTO, Calif.—Having already cut billions from state programs and tried tax increases, Gov. Arnold Schwarzenegger and legislative leaders from both parties say they are in no mood to compromise as they face California's latest summer of fiscal gloom.

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Schwarzenegger on Friday released his revised spending plan for the fiscal year that begins in July, forcing state leaders to tackle another massive shortfall -- this one estimated at $19.1 billion -- and consider deep cuts. The financial distress has been brought on by a recession that has seen jobs evaporate and tax revenue to state and local governments plunge.

At times somber, the Republican governor called for his deepest cuts to date on social welfare and health programs for the needy. He even proposed eliminating the state's main welfare program, which would affect 1.4 million people.

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