Under Governor Schwarzenegger’s 143 billion dollar plan - debt payments aside - the state wouldn’t spend more than it takes in.  That hasn’t happened in awhile. The Governor says his budget also includes a 2 billion dollar rainy day fund, money to expand health insurance for low-income children, and millions to implement a first-in-the-nation cap on greenhouse gases:

 “And let us show leadership to the rest of the country because we are dealing here with a lot of issues that the federal government should be taking care of – if it’s the healthcare situation, if it’s immigration.”

The plan also includes cuts to the state’s welfare-to-work program, which Democrats will fight.  And it clears the way for a massive round of borrowing for public works projects.  Republicans question whether the state can afford the new debt.