California governor Schwarzenegger presents new budget plan

Saturday, May 15, 2010

California governor Arnold Schwarzenegger unveiled a new budget plan for California on Friday, claiming that the Californian economy faces growth and budget problems like eurozone countries such as Greece and Ireland.

Schwarzenegger said in a Sacramento press conference that California must cut spending to US$12.4 billion.

To achieve this goal, the governor proposed cutting the CalWorks welfare system; however, state lawmakers quickly rejected this. Schwarzenegger said cutting the state welfare system for low-income families would save the state government $1.6 billion.

The governor also proposed freezing funds to local public schools and cutting state workers' incomes.

He wants to cut programs for the treatment of narcotics addiction for those using Medi-Cal and cut state mental heath services by 60%.

California is set to receive monetary aid from Washington, D.C. worth $3.4 billion.

California State Senate president Darrell Steinberg, a Democrat, said, "The cuts are absolutely unacceptable," and the governor should focus on delaying business tax cuts.

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Sources

Jim Christie and Peter Henderson. "Schwarzenegger compares California's woes to euro zone" — Reuters, 14 May 2010
Shane Goldmacher. "Schwarzenegger unveils austere budget plan" — Los Angeles Times, 15 May 2010

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Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

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Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.