Davis Unveils $10.2 Billion In Cuts
Governor Gray Davis is proposing $10.2 billion in sweeping midyear budget cuts.
The cuts include $3.4 billion in midyear cuts, transfers and borrowing to this year´s budget. They also include $6.7 billion in savings in the fiscal year starting July 2003.
Davis is proposing that the largest share – $1.7 billion – be taken from education spending.
There are also transportation project cuts and cuts in the state´s Medi-Cal program for the poor.
Davis is also proposing agencies and departments slash state payrolls by $470 million dollars through salary freezes or reductions, layoffs and furloughs.
The cuts are intended to help the state deal with an expected $21 billion budget shortfall.
Davis announced the proposal today in Los Angeles. The Legislature will convene Monday for a special session to take up Davis´ proposed cuts.