California Finally Has A Budget

California Governor Arnold Schwarzenegger joined legislative leaders Monday night to tell reporters that a budget compromise had finally been reached to patch up the current $26 billion dollar budget gap. The budget will provide temporary relief for California if it survives in the two houses of the State Legislature.

"We are very happy to have a basic agreement," Schwarzenegger said outside his office.

"All around I think it is a really great, great accomplishment," added the Hollywood star turned politician.

Here are the details of the new budget according to PressTV:

Under the currently proposed deal, the state will enforce $15.5 billion in cuts in the education sector and in health and welfare services. Around $4 billion will be taken from local governments, and $2 billion will come from new borrowing.

The state will also employ accounting maneuvers to plug nearly $3 billion of the budget hole, around $1 billion of which will come from assigning end-of-year pay to state workers to the next fiscal year.

Controversial plans to release prisoners early, however, will not take effect even though prisons will be subject to budget cuts. State parks will stay open and an off-shore oil drilling project will get the go-ahead.

College students will also be temporarily shielded from the deteriorating economy as those who have been promised grants this year will be able to receive them.

The plan will not entail tax increases, according to Schwarzenegger.

Although the budget gap will be closed, at least for this year, not everyone is happy with the results.

"This is a sober time because there isn't a lot of good news in this budget," The Associated Press quoted Senate President Darrell Steinberg as saying. "We have cut in many areas that matter to real people, but I think we have done so responsibly."

Karen Bass, the speaker of the California Assembly, in a telephone interview with The New York Times termed the budget as one that would cause pain. "I would characterize this budget as shared pain and shared sacrifice."

"This is, of course, one of the most difficult economic times to face our state since the Great Depression, so none of these were easy choices," said Assembly Minority Leader Sam Blakeslee, a Republican. "I think we selected a path which will lead the state back to the point where we will be strong."

A vote on the measures to close the $26 billion deficit is expected on Thursday.