Lawmakers and Gov. Schwarzenegger finally hammered out a deal last night to close the $26.3 million budget gap. The final budget more closely resembles the governor’s proposed budget than that of the Democratic lawmakers who’ve been locked in a stalemate with Schwarzenegger and legislative Republicans since February. The deal calls for $15 billion in cuts, up from the $11 billion the Democrats were proposing and closer to the $16 billion the Governor wanted. According to Bloomberg and the Wall Street Journal, $6 billion will come from education, $3 billion from colleges, $1.2 billion from prisons and $1.3 billion from state worker furloughs; it’s not clear where the rest comes from, though reports say the state will raise $4 billion in part by collecting income taxes early. The state will also “borrow” $2 billion from cities and counties and gain another $1.5 billion by shifting money into different accounts and bumping the last state worker payday into next fiscal year. The two houses of the legislature are to vote on the budget this Thursday.
California Gets a Budget
