California Lawmakers Continue Negotiations To Tackle Budget Deficit
Legislators have set Sunday as the deadline to act on Gov. Arnold Schwarzenegger's (R) plan to boost state sales taxes and cut spending in an effort to ease the state's budget deficit of $11.2 billion this fiscal year, the San Jose Mercury News reports (Zapler, San Jose Mercury News, 11/18).
Under the governor's proposal, the California Health and Human Services Agency faces a mid-year budget cut of $950 million and the prospect of a $3 billion cut for fiscal year 2009-2010 (California Healthline, 11/7).
According to the Mercury News, Republican lawmakers remain opposed to tax increases, just as Democratic legislators continue to oppose "deep spending cuts" for state services.
The governor is scheduled to meet with legislative leaders today to discuss strategies for addressing the deficit.Sources in the Legislature "are pessimistic" that a deal will be reached by the weekend, the Mercury News reports (San Jose Mercury News, 11/18). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.