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Governor Davis Signs $5 Billion in Cuts

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Governor Gray Davis has signed legislation cutting almost $5 billion from state spending over the next two years. But Davis said more cuts are needed to reduce the looming state deficit that could reach $34 billion over the next 15 months.

The approved bills will cut about $1.2 billion from education and public health. There was also authorization allowing the state to use borrowed money instead of general fund cash to make $1.8 billion in pension payments.

Davis said his revised budget is due out next week, bringing expectations of more budget cuts to come.

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