Schwarzenegger Seeks New Cuts to Close Calif. Deficit
California Governor Arnold Schwarzenegger proposed a new round of budget cuts, including eliminating the state’s main welfare program for families, to close a $19.1 billion budget deficit for the year starting July 1.
The $83.4 billion plan calls for $12.4 billion in spending reductions, $3.4 billion in additional federal aid and $3.4 billion in fund shifts, fees and assessments, according to the governor’s budget. This year’s budget was $86.4 billion.
The Republican’s revisions come four months after his first draft of a 2011 spending plan stalled in the Democrat-led Legislature. Schwarzenegger has vowed not to raise taxes, forcing him to rely on deeper cuts.
The proposals include dismantling the state’s main welfare program for families, known as CalWorks,