Schwarzenegger Signs Calif. Budget, Finally

Plan calls for massive cuts to close $26B budget hole

(NEWSER) - After weeks of wrangling, Gov. Arnold Schwarzenegger has made a deal with state lawmakers to close the $26 billion hole in California's budget, the Sacramento Bee reports. Leaders believe the plan—which involves massive spending cuts and borrowing from city governments—is solid enough to secure billions of dollars in short-term loans, allowing the state to stop issuing emergency IOUs. More»

(NEWSER) - The California Legislature and Gov. Arnold Schwarzenegger are just steps away from an agreement that would close the state’s $26.3 billion deficit, the Los Angeles Times reports. Talks are expected to conclude today. “I don’t think there is anything that would make negotiations shut down at this point,” the Democratic assembly speaker says; a deal on contentious education cuts appears to be key. More»

Gov defends stance amid standoff

(NEWSER) - Tensions are soaring in California as Gov. Arnold Schwarzenegger faces off against Democratic lawmakers in the state’s budget crisis. But the governator is keeping calm as he defends his position, the Financial Times reports. He’s calling for welfare reform before he’ll sign off on a budget, but Dems say now’s not the time. “If you can’t get them to cut down the costs of government when the state is facing such a financial crisis, then it’s never going to happen,” said Schwarzenegger. More»

(NEWSER) - California Gov. Arnold Schwarzenegger today declared a fiscal emergency and ordered lawmakers to produce a plan to close the state’s $24.3 billion deficit within 45 days, the San Francisco Chronicle reports. To accomplish that, Schwarzenegger called a special session of the legislature, and also ordered 220,000 state employees to take a third additional furlough day each month. More»

Defeat leaves Governator facing massive service cuts

(NEWSER) - Californian voters soundly rejected five ballot measures that would keep the hard-hit state economically solvent until the end of the year, on a turnout of little more than 10%. The vote against extended tax increases and capped spending is a sharp rebuke to Gov. Arnold Schwarzenegger and state legislators who put together the last-minute budget deal, reports the San Francisco Chronicle. More»