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Assembly Passes Budget: State Will Not Swipe Gas Tax Revenues

Sacramento, Ca — The Assembly has approved a plan designed to close the $26.3 billion deficit, and the package now heads to Governor Schwarzenegger for his signature.

Assembly leaders did eliminate a controversial plan to take over $1 billion in gas tax funds from local cities and counties. It would have had a significant effect on the local public works departments. The Assembly also decided against allowing new offshore drilling along the coast.

The budget reduces spending for a majority of state programs, borrows heavily from local cities and counties and reduces state salaries by furloughing workers.

Written by bjhansen@mlode.com.