California Budget Deal Reached

It doesn't solve everything but its a definite start and should help the state have its credit rating improved. Of course they ended up cutting anyway which goes to shoe shoe that a minority party that is stubborn when its right can accomplish things:

The plan, which is certain to be viewed with trepidation among legislatures across the country also facing huge budget gaps, distributes pain through nearly every aspect of government services. While the Legislature pushed back on Gov. Arnold Schwarzenegger’s proposal to eliminate health care programs for children and the state’s generous welfare program, both took large cuts. So did public education, universities and local governments.

All told, the deal contains $15.6 billion in cuts, about $2.1 billion in borrowing, $3.9 billion in new revenues and about $2.7 billion in accounting maneuvers like shifting a payday into the next fiscal year, which Mr. Schwarzenegger had claimed he would not brook.

Under the new budget, which runs through the 2010 fiscal year, localities will basically serve as unwilling lending agents to the state. It will raid their coffers and repay them over time as the state’s fiscal situation improves.

“I would characterize this budget as shared pain and shared sacrifice,” Karen Bass, the speaker of the California Assembly, said in a telephone interview from Sacramento.

The governor also had this gem:

The governor also said, on his Twitter feed: “We’ll actually be having a CA Garage Sale at the end of Aug to auction cars and office supplies.” He will sign some of the items to increase their value.