Budget accord reached: Calling for deep cuts and avoiding broad tax hikes, Schwarzenegger and legisl

[lindisfarne]

Source: LA Times

Calling for deep cuts and avoiding broad tax hikes, Schwarzenegger and legislative leaders agree on ways to close California's $26.3-billion deficit.

Gov. Arnold Schwarzenegger and legislative leaders announced today that they have reached a deal to close California's $26.3-billion deficit and begin paying all of the state's bills again.

The agreement does not include any broad-based tax increases, they said, and relies largely on deep cuts in government services to wipe out the deficit.

Most of the details have yet to be released. But interviews with lawmakers and staff involved in the negotiations suggest that the plan would reshape government in California, significantly scaling back many services that have been offered to residents -- particularly the elderly and the poor -- for years.

In addition, tens of thousands of seniors and children would lose access to healthcare, local governments would sacrifice billions of dollars in state assistance this year and large numbers of state prisoners would have their sentences scaled back. Welfare checks would go to fewer residents, state workers would be forced to continue to take unpaid days off and new drilling for oil would be permitted off the Santa Barbara coast.



Read more: http://www.latimes.com/news/local/la-me-budget21-2009jul21,0,5521044.story