'Big Five' Hammer Out State Budget Deal

Budget deal includes $4.3 billion in borrowing from local governments Gov. Arnold Schwarzenegger and California legislative leaders report t...




Budget deal includes $4.3 billion in borrowing from local governments




Gov. Arnold Schwarzenegger and California legislative leaders report they have reached an agreement on the state's budget tonight.




The new budget includes $15 billion in cuts coming mostly in education. The balance of the $26 billion shortfall will be derived from borrowing from local government and accounting maneuvers.

Of the $15 billion in cuts, $9 billion will come from education, $1.3 billion from state employee furloughs and $1.2 billion from the prison system. The budget includes no new taxes or fees.

The budget must be approved by both houses before it is enacted.

The state will also borrow $4.3 billion from local governments or diverat money earmarked for local projects. Some economist have expressed concern the borrowing will hurt local governments ability to provide promised services.

EGN has contacted city manager Laura Gill and finance director Rebecca Craig seeking comment on how the budget deal might affect city finances.


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6 comments

Anonymous said...

"Borrowing" from local govt's? More like stealing. They solved nothing. All they have done is move the debt around. All tricks. In 6-9 months, we will be back at square one.

stinceelli said...
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Bob Lent said...
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Anonymous said...

Love the Mall Lisa!

Anonymous said...

Can't wait for Coach to open! YES WE ARE MAD AS HELL!

Anonymous said...

Just heard Arnold plans to take excess money of EG.... give it up Pat Hume.... you destroyed this city!

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