Governor Proposes Budget For ‘Tough Times’

SACRAMENTO -Gov. Arnold Schwarzenegger has released an $83 billion spending plan for California that will provide the lowest general funding spending in six years.

An austerity budget that relies on deep social service cuts is needed, he said, because “tough times still lie ahead.”

He will make up for a drastic drop in tax revenue and plug a $20 billion deficit by cutting health and human services, welfare, transportation and environmental programs.

He also seeks to raise money by rolling back recent corporate tax breaks, expanding oil drilling off the Santa Barbara coast and calling on the federal government for more assistance.

The Republican governor vowed to protect spending for public schools.

Schwarzenegger’ budget proposal for the fiscal year that begins in July contains $82.9 billion in spending from the general fund, $3.1 billion lower than last year.