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A legislative analyst takes a look at Governor Schwarzenegger's May budget revision
Governor Schwarzenegger’s May budget revision on Friday was the first act of the multi-part drama that is about to unfold in Sacramento as the Legislature begins to grapple with closing a $19 billion budget deficit. Today the nonpartisan Legislative Analyst Office takes its turn pulling apart the governor’s budget proposal and is sure to look at the short-term savings versus the long-term costs of some of the more drastic cuts proposed by the governor. For instance, will completely eliminating the CalWORKS program, scheduled to save the state about $1.1 billion, come back to haunt the state government in the form of higher unemployment and lower tax revenues? Will the cuts to in-home care programs and mental health services result in great costs in the state’s emergency rooms? The LAO weighs in on what is sure to be a protracted fight over California’s budget.
Michael Cohen, Deputy Legislative Analyst at the LAO