The Associated Press today is reporting that after a record 77 day delay, California legislators are nearing a deal to finalize the 2009 state budget. Leaders from both parties announced that a $15.9 billion deficit was erased to balance the budget, with $9 billion in spending cuts and the rest in what the legislators called “accelerated revenues.”
Details were not yet released in order to brief other state leaders on the deal. Governor Schwarzenegger is expected to approve the plan, but has said that he would not be warm to a budget that did not include long-term reform. The AP story reports that the plan does include many variations that Schwarzenegger requested, but a spokesman for the governor expressed concerns that reform was not strong enough. The state is months behind on millions of dollars owed to California schools and programs, medical facilities and many other companies.
It will certainly be a relief when the budget is finally passed, but not all are happy with the plan. Members of the healthcare world (like this one) are particularly unhappy, and several local education and medical facilities in Long Beach have suffered from the delay. Many will not know their financial outlook until well after the state budget is approved – which, again, has not yet officially happened.
By Ryan ZumMallen, Managing Editor