Midyear Budget Cuts Update

A sharp decline in revenues the past month has compelled Gov. Arnold Schwarzenegger to call lawmakers back for a special lame duck session to help close a new, gaping $11 billion shortfall, which has opened up in the 2008-09 budget. Schwarzenegger is proposing a mix of cuts and revenues to close the gap. The cuts come on top of $10 billion already cut out of this year’s spending plan, which was signed in mid-September. The governor has proposed the following cuts, effective December 1. The cuts will be considered in a Special Session in November, by the “lame duck” legislature, before the new session, and new members, convene on December 1st.

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