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Difficult Choices Ahead

Sacramento, CA – Governor Schwarzenegger is proposing that California return to its spending level of 2004-05.

The Governor has released his comprehensive plan to cut $19.9 billion over the next year and a half.

Schwarzenegger is proposing that state employees take a five percent cut in salaries across the board. He is also calling for a 15 percent reduction in state personnel costs achieved by modifying employee compensation. Workers would be required to contribute five percent more to their pension plan.

Education funding is not affected by the Governor’s proposal and would be fully funded.

The Governor is hoping to achieve $6.9 billion in savings by reforming the way that state obtains funds and reimbursements from the federal government.

Cuts are proposed for health and human services, welfare, transportation and environmental programs. He is also proposing to roll back recent corporate tax breaks and expand oil drilling of the Santa Barbara coast.

The Governor’s budget for the fiscal year that begins in July contains $82.9 billion in spending from the General Fund, the lowest amount in six years.

Written by bjhansen@mlode.com.