California Budget Deal Reached
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Gov. Arnold Schwarzenegger and the four state legislative leaders reached an argreement on how to rid the state of a $19.1 billion deficit--the closest the state has been to having a budget this fiscal year.
"We've reached an agreement, and there will be a vote on the budget Thursday," Schwarzenegger said in a post on Twitter.
The deal includes:
- $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
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