SACRAMENTO (AP) - Governor Arnold Schwarzenegger has released a
$144.3 billion dollar state budget that eliminates a massive
deficit by selling lottery bonds and cutting billions in state
programs.
The spending plan for the fiscal year that begins in July is
austere, a byproduct of a slowing state economy.
Tax revenue has been falling far short of what California needs
to keep pace with spending, leading to a more than $15 billion
dollar shortfall.
The centerpiece of Schwarzenegger’s budget relies on a plan to
make the state lottery more lucrative and thus more attractive to
potential investors. The governor hopes to raise $15 billion
dollars over the next three years by selling bonds based on
anticipated lottery revenue. He will use about one-third of that in
the next fiscal year to help erase the state’s deficit. The rest
would remain in a reserve fund the governor wants to create to help
the state get through rough financial times in the future.
Filed under: State News
