More California budget cuts proposed for the current year
Gov. Arnold Schwarzenegger announced additional cuts to the state budget today. To bridge an estimated $11.2 billion budget gap, he’s proposing to raise $4.7 billion with new taxes (including raising the state sales tax by 1.5 cents, taxing services like car repair and veterinary visits, and raising taxes on drinks served in bars and restaurants). Cuts to K-12 education funding in the current school year total $2.5 billion under the new plan. No word yet on what cuts will look like for 2009-10. “A drastic situation like this,” Schwarzenegger said in a news conference, “takes drastic measures.” State Republicans say they’ll fight the increase in taxes.