By Katy Murphy
Tuesday, January 15th, 2008 at 9:09 am in finances.
I’m sure most of you are well aware that Schwarzenegger aims to terminate the state’s massive deficit by cutting programs across the board by 10 percent. That would mean a $4 billion loss for schools.
Well, the nonpartisan Legislative Analyst Elizabeth Hill doesn’t think that approach is very prudent. Her analogy? A financially strapped family who decides to blindly cut each of its expenses — groceries, clothing, entertainment — by 10 percent, rather than trimming movies, restaurants and other non-critical expenses first.
She says the governor’s proposal wouldn’t change tax breaks and loopholes, which cost the state some $40 billion a year in lost revenue. Everything should be considered as part of the solution, she said.
Here is a story about Hill’s report in today’s Tribune.
In your view, how should the governor balance the budget?