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December 2, 2008 8:54:18 PM CST

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Calif. Budget Deal Pays '08 Debt With '09 Taxes

Posted Sep 15, 08 9:21 AM CDT in Politics 

(Newser) – California lawmakers have finally come to an agreement on the new state budget, ending a stalemate in which Republicans refused to add new taxes and Democrats fought against cutting funding for education and health care. The compromise sees the state using next year's money to pay off its current debts, writes the Los Angeles Times.

Gov. Arnold Schwarzenegger might still demand changes, but any veto from his office could be overridden by the same two-thirds vote needed to pass the bill. The plan requires taxpayers and businesses to pay more of their taxes earlier, and will avoid the need to cut state employees' salaries to minimum wage, as Schwarzenegger had been trying to force the state controller to do.

Source Los Angeles Times

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California Gov. Arnold Schwarzenegger remained in California during the GOP convention because lawmakers failed to reach agreement on a state budget, now two months overdue.   (AP Photo/Nick Ut)
California Gov. Arnold Schwarzenegger tried to get the state controller to cut the pay of all state employees to the federal minimum wage while budget negotiations went on.   (AP Photo/Ben Margot)
Students demonstrated against proposed cuts to funding of the state's college systems in Gov. Arnold Schwarzenegger's proposed 2008-09 state budget, Monday, April 21, 2008.   (AP Photo/Rich Pedroncelli)
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The proposed budget not only fails to fix the ongoing budget crisis but places health and other vital services at even more risk in future years. - Anthony Wright, executive director of the nonprofit Health Access California

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California • Arnold Schwarzenegger • taxes • budget deficit • minimum wage • fiscal imbalance


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