Duncan McIntosh, Governor's Office
California Governor Arnold Schwarzenegger has proposed a tight-fisted budget that includes record revenue.
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.