Gov. Schwarzenegger to swing a big budget ax

Friday, January 2, 2004

SACRAMENTO, Calif. -- Saddled with a shortfall of at least $14 billion and a promise not to raise taxes, Gov. Arnold Schwarzenegger is likely to release a budget next week with few surprises -- it will contain cuts, cuts and more cuts. While the administration has released no details of the 2004-2005 spending plan, lawmakers and lobbyists engaged in budget negotiations with the governor say they expect to see a painful list of spending reductions that reach every corner of the state bureaucracy. Topping the list will likely be public health and welfare programs -- especially Medi-Cal, the state's health insurance for the poor and disabled that costs more than $10 billion a year.

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