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Friday, May 22, 2009

California vote, tough choices


LOS ANGELES — Now what? With few tricks up their sleeves, Gov. Arnold Schwarzenegger and state lawmakers agree they can no longer avoid deep cuts to schools and government services after California voters rejected their special election budget proposals this week.

"I think the message was clear from the people: Go all out and make those cuts and live within your means,” Schwarzenegger said Wednesday in Washington, D.C., after voters rejected a complex slate of propositions that included a spending cap, higher taxes, borrowing and raiding money from programs dedicated to young children and the mentally ill.

Tuesday’s ballot defeat was resounding, with two-thirds of voters rejecting the five budget-related propositions. They overwhelmingly passed a sixth proposition, which denies lawmakers and state elected officials pay raises when the state runs a deficit.

Defeat of the measures means California’s deficit for the fiscal year that begins in July will grow from $15.4 billion to $21.3 billion.

The shortfall remains that great even after lawmakers account for billions in aid from the federal stimulus package and more than $12 billion more in tax revenue.





by the associated press

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