California Budget Proposal Finally Debated By Full Legislature
SACRAMENTO (KCBS/AP) - California lawmakers have gotten their first look at a proposal that attempts to end the state's record-long budget impasse and close a $19 billion deficit, primarily through targeted spending cuts and a large dose of creative accounting.
The deal, reached late last week between Governor Arnold Schwarzenegger and the four Republican and Democratic leaders of the Assembly and Senate, does not contain new taxes or fees. Instead, it relies on a series of assumptions and accounting maneuvers that in all likelihood will punt many of this year's budget problems to the next governor, who will be elected Nov. 2 — either Democrat Jerry Brown or Republican Meg Whitman.
An initial vote Thursday in the Assembly failed to muster the necessary two-thirds majority needed for approving budgets, but leaders from both parties were optimistic that the legislation eventually would pass.
The sessions in the Assembly and Senate were the first floor discussions of a budget agreement reached last week by Gov. Arnold Schwarzenegger and the Democratic and Republican leaders from both houses.
The proposal relies on targeted spending cuts, rosy revenue assumptions and creative accounting to close California's $19 billion deficit.
KCBS/CBS 5 and Chronicle Insider Phil Matier said California's fiscal situation is nearly the same as when Gov. Arnold Schwarzenegger took office promising great change in Sacramento.
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