Democratic Assembly Speaker Fabian Nunez was blunt about the revised budget:

 “This is a budget that’s just plain bad.”

Nunez is frustrated that Schwarzenegger has proposed suspending cost of living increases for in-home care for the elderly and disabled – and even deeper cuts to welfare to work programs – while paying down some debt ahead of time:

“The administration wants to pay off wall street early, even if it means that kids on main street do without.”

Republicans, on the other hand, applaud the early debt payments – but are concerned that the state would spend more than it takes in under the Governor’s plan.  Assembly budget Vice-Chair Roger Niello:

 “We still go into the next budget year 08-09, several billion dollars,, so you have to at least balance this year.”

Both sides have made it clear budget negotiations won’t be easy this year.