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Schwarzenegger cuts heath and welfare to balance California budget
Sacramento, Jan 10: California Governor Arnold Schwarzenegger presented his first state budget, proposing sweeping cuts in health and welfare to balance the 14-billion-dollar deficit.
Sacramento, Jan 10: California Governor Arnold Schwarzenegger
presented his first state budget, proposing sweeping cuts in health
and welfare to balance the 14-billion-dollar deficit.
''For the past five years, the politicians have made a mess of
California's budget,'' said Schwarzenegger yesterday when
introducing the 99.1-billion-dollar plan. ''Now it's time to clean
it up.''
Among the largest changes were some 900 million dollars cut from a medical insurance programme, 800 million dollars less for welfare programmes and fee hikes of up to 40 per cent for students in the state university system. The budget also assumed an improved economic climate and the issuing of 15 billion dollars in state bonds.
Also targeted for major cuts are transportation projects. The governor is proposing to reallocate roughly one billion dollars in gasoline tax money that is earmarked for transportation. That money would instead go to balancing the budget.
In line with Schwarzenegger's campaign promises, the budget contained no new taxes. Observers said it would require consummate political skill on the part of the republican governor to push the plan through the democrat-controlled legislature.
''It is difficult. It is painful,'' Schwarzenegger said. ''This is the only way we can do it, because we don't have the money.''
Bureau Report
Among the largest changes were some 900 million dollars cut from a medical insurance programme, 800 million dollars less for welfare programmes and fee hikes of up to 40 per cent for students in the state university system. The budget also assumed an improved economic climate and the issuing of 15 billion dollars in state bonds.
Also targeted for major cuts are transportation projects. The governor is proposing to reallocate roughly one billion dollars in gasoline tax money that is earmarked for transportation. That money would instead go to balancing the budget.
In line with Schwarzenegger's campaign promises, the budget contained no new taxes. Observers said it would require consummate political skill on the part of the republican governor to push the plan through the democrat-controlled legislature.
''It is difficult. It is painful,'' Schwarzenegger said. ''This is the only way we can do it, because we don't have the money.''
Bureau Report