Governor's Budget Increases Spending and Revenue

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(Sacramento, CA)
Monday, January 10, 2005
The governor’s budget plan for next fiscal year increases spending by three and a half billion dollars. But revenues are expected to grow by five billion. Schwarzenegger said to make it all add up, he had to balance the claims of health services for children with the demands of the education lobby. CUT: ArnEdCant10 :10 Education groups insist the governor promised full restoration of Proposition 98 school spending increases that were forgone last year. Kevin Gordon with the California Association of School Business Officials says because the new budget is being released as a C D, and not on paper, its impact isn’t fully known yet. CUT: KevinGordon09 :09 The governor says proposed increases will push per pupil spending in California above ten thousand dollar a year for the first time. But he wants a constitutional change that would automatically cut school spending – along with all other programs – if revenues decline in the middle of the budget year. SOC