Gov. Arnold Schwarzenegger urged lawmakers to act quickly to close the state's $19.9-billion shortfall. His budget plan includes:
New revenue
$6.9 billion: Ask the federal government to cover more state expenses, including those related to incarcerating illegal immigrants, special education and healthcare for the poor.
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California budget highlights
$200 million: Allow new oil drilling off the coast of Santa Barbara.
Budget cuts
$2.4 billion: Cut funding for schools and community colleges.$868 million: Scale back services provided by the Medi-Cal healthcare program for the poor and raise co-payments and premiums. Medi-Cal services for new legal immigrants would be eliminated.
$950 million: Restrict access to the state's in-home healthcare program for the low-income elderly and disabled to those with the "highest level of need." Caregiver salaries also would be cut to the minimum wage.
$1.4 billion: Cut pay for state workers by 5% and require that they contribute more to their pension plans. State departments also would be asked to reduce their payrolls by an additional 5% through workforce reductions.
Source: California State Department of Finance
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July 25, 2008 - Gov. Vetoes Minimum Wage Hike
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