Skip to: Content
Skip to: Site Navigation
Skip to: Search

December 2, 2008 12:01:49 PM CST

Learn about Newser Points »

« Back to the grid | Next story »

Calif. Crunch May Force Drastic Cuts

Posted Dec 22, 07 7:22 PM CST in US 

(Newser) – California's dire financial straits may force the early release of 30,000 low-risk inmates and bring drastic cuts in education, the Los Angeles Times reports. Arnold Schwarzenegger will declare a fiscal emergency next month as the state wrestles with a $14.5 billion budget gap. The governor has ordered agencies to explore spending cuts of 10% across the board, which could soften opposition to future tax increases.

The 10% cut is “not as easy as it sounds,” said one state official. The state’s interest groups are “going to be squealing beyond belief,” another predicted, adding that because Schwarzenegger vowed not to raise taxes, he’ll prod Californians by proposing the cuts: “He won’t talk taxes until there is a consensus that these services are what the state wants.”

Source Los Angeles Times

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • State Budgets Caught in Economy's Freefall

    Mar 17, 08 12:38 PM CDT
    State Budgets Caught in Economy's Freefall Politicians from New York to California are wringing their hands, wondering whether to cut spending or raise taxes. As the economy barrels towards recession, income and sales taxes are coming in well below expectations, and about half the states in the country are facing budget shortfalls, the New York Times reports. In many places, health care and education are on the chopping block. More »

  • Calif. Budget Falls Prey to Housing Crisis

    Nov 6, 07 9:26 AM CST
    Calif. Budget Falls Prey to Housing Crisis With the housing crisis laying waste to California’s coffers, Arnold Schwarzenegger yesterday ordered all state agencies to cut budgets by 10%, the LA Times reports. “We are among a handful of states that has a lot of exposure to the housing crash,” said an economist. Property, sales, and income taxes are all down, threatening to balloon the deficit to $10 billion. More »

Governor Arnold Schwarzenegger will present a raft of proposals to close the gap in the state's budget, including reducing school funding and releasing inmates early from prison.   (Getty Images)
Gov. Arnold Schwarzenegger will announce major cuts to state spending next year, the Los Angeles Times reports. (AP Photo/Rich Pedroncelli)   (Associated Press)
Governor Arnold Schwarzenegger plans to cut $1.4 billion from California's school budget in order to close a gap in the state's budget.   (Getty Images)
California Governor Arnold Schwarzenegger will seek to cut school funding by $1.4 billion next year to close a gap in the state's budget.   (Getty Images)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 2)

Tags

California • education • Arnold Schwarzenegger • budget deficit • teacher • state sales tax • state spending • inmates • prison population • school budget


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other US Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »