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Davis To Propose $10 Billion In Cuts

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Governor Davis will propose $10 billion in midyear budget cuts tomorrow to help address a budget shortfall that could soar past $21 billion over the next 18 months.

That´s double what Davis originally said he would propose in midyear cuts.

The figure includes cuts to this year´s budget, savings in the following year and other measures. Davis says it does not include tax or fee increases.

State legislators will return to the Capitol Monday for a special session on the cuts, which Davis wants finalized by the end of January.

A sagging economy has led to less state revenue, causing a shortfall that could exceed $21 billion deficit over the next 18 months.

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