Governor Schwarzenegger is calling for another three-billion dollars in state budget cuts today (Friday). They’d dig deeper into education and health and welfare programs for the needy.
Capital Public Radio's Steve Shadley reports...
State Department of Finance Director Mike Genest (JUH-Nest) says the governor wants to cut education by an additional 680-million dollars. In addition, Medi-Cal and social programs for the needy would see another one-billion dollars eliminated. According to Genest, if lawmakers don’t approve the cuts by mid-June the state will quickly run out of money. He says if that happens, the consequences aren’t easy to describe.
“If this was a private company it would be easy to explain, it would be a simple process its called bankruptcy. There is no such option available to the state, so I just can’t describe the worst-case scenario. But, I would say that its impossible to get to it but we could get to it if we don’t get the budget problem solved...”
Governor Schwarzenegger is expected to call lawmakers into a joint session on Tuesday to outline his latest cuts. He’s also going to explain more about his plan to cut the pay of state workers by five-percent and close 220 state parks to help California overcome a 24-billion dollar cash shortfall.