Jul 29, 2009 6:06 am US/Pacific
Dems Question Legality Of Gov.'s Budget Cuts
SACRAMENTO (AP) ― Gov. Arnold Schwarzenegger has signed a revised $85 billion budget and targeted welfare for deeper cuts, prompting threats from Democratic lawmakers to block his political agenda during his final months in office.
"This kind of game playing by the governor doesn't bode well for success in terms of water, corrections, pensions or any of the other items that he is looking to in order to build some kind of real legacy," Assembly Speaker Karen Bass said in a statement Tuesday after the Republican governor announced his vetoes.
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His vetoes drew sharp criticism from advocates who said more children would go without insurance, foster families would receive less money and the state would cut HIV/AIDS testing.
"The governor's heartless act is not only deadly, but guaranteed to cost California taxpayers millions more in the future," said Michael Weinstein, president of AIDS Healthcare Foundation.
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Among the questionable maneuvers in the plan, the state will accelerate income tax withholding by 10 percent to inflate revenues during the year and shift state employee payroll by one day for a paper savings of $1.2 billion. The state also will sell a portion of its workers compensation insurance business for $1 billion, which the Legislature's nonpartisan analyst doubts can be done within the fiscal year.
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http://cbs13.com/politics/reaction.schwarzenegger.budget.2.1105762.html