Calif. Assembly OKs Budget Plan; Schwarzenegger Next

By Newser Editors and Wire Services
Posted Jul 24, 2009 5:33 PM CDT
Calif. Assembly OKs Budget Plan; Schwarzenegger Next
California state Senate Minority Leader Dennis Hollingsworth, R-Temecula, left, ponders talks with Sen. Bob Huff, R-Diamond Bar, during the debate over one of the state budget measures today.   (AP Photo)

(Newser) – California's state assembly today approved a plan to close most of its $26 billion budget deficit, sending the package of financial fixes to Gov. Arnold Schwarzenegger, who's expected to sign it by Monday. The Assembly rejected two of the most controversial measures, a plan to take about $1 billion in transportation funding from local governments, and allowing oil drilling off the California coast for the first time in 40 years.

The loss of $1.1 billion from the budget package essentially eliminates the $900 million reserve fund Schwarzenegger negotiated with Democrats and Republicans. That will force him to use his authority to make even deeper cuts to close the gap. (Read more California stories.)

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