California Governor Arnold Schwarzenegger is set to unveil his revised budget after four months of legislative debate failed to close a budget deficit calculated at $20 billion. Schwarzenegger's updated budget, scheduled to be released on Friday, is expected to call for eliminating various state programs with health and welfare programs expected to bear the brunt of cuts, Reuters reported
Just a suggestion, but wouldn't it make a lot of sense to start cutting the most recent first?
The report also says that teachers are expected to lose jobs and cities will be forced to hand over revenue.
Earlier this year, Schwarzenegger acknowledged his proposed spending cuts for health and welfare programs were "draconian" but he reportedly believes that the state's $20 billion budget deficit will be closed mostly through spending cuts.
However, the governor of California has ruled out raising taxes or closing corporate tax loopholes, saying doing so would harm the state economy, Associated Press reported.
Democrats in the California State Assembly say they will not accept more cuts, but Republican lawmakers are standing with the governor.
Time is running out for the two sides to reach an agreement on a spending plan for the state's next fiscal year, which begins on July 1, but pundits predict the impasse will not be resolved by the deadline.