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Governor Schwarzenegger Announces Revised Budget Plan




Governor Schwarzenegger is seeking the deepest cuts to the state's health and welfare programs since California tumbled into a recession nearly 3 years ago. He announced his revised budget plan today for the fiscal year beginning in July, with unemployment remaining high and tax revenue low.

General fund spending will be $83.4 billion ... the lowest level in six years as the state faces a $19.1 billion deficit, more than 20 percent of all planned spending.

Saying we have to use the ax, Schwarzenegger's plan is to eliminate CalWORKS, the state's welfare-to-work program. He said cuts over the past few years have done away with the ``low-hanging fruit'' in state government.