• BREAKING NEWS ABC shows live and on-demand -- Download the WATCH ABC app!

Gov., leaders reach budget deal?

February 12, 2009 12:00:00 AM PST
Gov. Arnold Schwarzenegger and legislative leaders have reportedly reached a deal to close the state's $42 billion budget gap. All Californians can expect to pay the tab.The Sacramento Bee says the deal calls for $14 billion in new taxes, including a hike of one penny on the dollar to the state's sales tax and 12 cents a gallon on gasoline.

The deal reportedly also calls for $16 billion in spending cuts and $11 billion in borrowing.

Under the proposal, education cuts would reduce funding for dozens of programs, such as summer school and gifted students.

State workers would lose two paid holidays and still face the two day a month unpaid furloughs through 2010.

Given all those tax increases, the big question is whether Republicans will be onboard.

Three lawmakers in each house have to cross over to meet the two-thirds vote requirement, and GOP members are under pressure from their constituents to vote "no" unless permanent state spending restraints are included.

An Assembly vote is scheduled for Friday.


MORE L.A. BREAKING NEWS, WEATHER, TRAFFIC, SPORTS

USEFUL LINKS:
SEND TIP || REPORT TYPO || TWEET @abc7 ||  WIDGET


Load Comments