California Budget Deal Reached
"We've reached an agreement, and there will be a vote on the budget Thursday," Schwarzenegger said in a post on Twitter.
- $7.5 billion in spending cuts (Republicans wanted $12 billion and Democrats wanted $8 billion)
- Cuts to K-12 spending this year and past years would have to repaid to schools in the future
- Delay of a $1.4 billion coporate tax break whereby companies could deduct current operating losses against past revenues
- Sell 11 state properties for more than $1 billion and then lease them back
- Increased projection of $5 billion from $3.4 billion of federal funding