Governor Arnold Schwarzenegger has signed into law a state budget that’s nearly two months overdue. In a ceremony in the Capitol rotunda Friday he noted the problems the late budget caused, with delayed payments to nursing homes and hospitals.
“Now I have traveled up and down the state and I have seen people suffer because of it. So I am very glad the Controller is speeding up the payments on more than 60-thousand unpaid claims…”
Schwarzenegger reduced spending by more than 700-million dollars in line-item vetoes he made. That was part of the final budget agreement worked out among legislative leaders. That will bring the deficit down to zero in this budget year. Among the cuts is a reduction of more than 300-million dollars in projected Medi-Cal spending. Medi-Cal is the health care system for the state’s poor. More than fifty-million dollars has been cut from a program to serve the homeless mentally ill.