LEGISLATIVE LEADERS AGREE ON PACKAGE OF SPENDING CUTS.Byline: David M. Drucker Staff Writer SACRAMENTO - Legislative leaders late Wednesday agreed on a $3.6 billion package of spending cuts Noun 1. spending cut - the act of reducing spending cut - the act of reducing the amount or number; "the mayor proposed extensive cuts in the city budget" , deferrals and loans toward the 2003-04 budget, two months before it is due, but just in time to capture $656 million in current-year savings. The Assembly and state Senate are expected today to approve the compromise, which includes $316.9 million in reductions and changes to state subsidized sub·si·dize tr.v. sub·si·dized, sub·si·diz·ing, sub·si·diz·es 1. To assist or support with a subsidy. 2. To secure the assistance of by granting a subsidy. health care sought by Republicans and the realization of $1.85 billion in revenue through the sale of pension obligation bonds wanted by Democrats. Gov. Gray Davis said he would sign it by Monday, the deadline for selling the bonds. ``The good news is, we solved about $3.7 billion of the (2003-04) budget year problem. The bad news is we have about another $29 billion to go,'' Senate Minority Leader Jim Brulte Jim Brulte (born April 13, 1956) is a Republican U.S. politician, who served as a California State Senator representing the 31st district, from 1996 to 2004. He also served as the Senate Republican leader from 2000 to 2004. , R-Rancho Cucamonga, said during a joint news conference. Legislative action on shoring up Noun 1. shoring up - the act of propping up with shores propping up, shoring supporting, support - the act of bearing the weight of or strengthening; "he leaned against the wall for support" a deficit Davis pegs at $34.6 billion has been relatively stagnant stagnant /stag·nant/ (stag´nant) 1. motionless; not flowing or moving. 2. inactive; not developing or progressing. since early December, when the governor called the Legislature into special session to address the problem. Wednesday's deal marked the first time since this crisis began that the four leaders came together to announce significant progress. ``We worked together on this for several days, and I think if there was ever an example of bipartisanship In a two-party system (such as in the United States or Australia), bipartisan refers to any bill, act, resolution, or any other action of a political body in which both of the major political parties are in agreement. , this is it,'' Assembly Speaker Herb J. Wesson, D-Los Angeles, said. The sale of the pension obligation bonds will not actually occur for 22 weeks, but because it takes that long to prepare for the transaction, May 5 is the absolute deadline for commencing such a move. Doing so scores $656 million in savings in the 2002-03 budget year - which ends June 30 - because Sacramento will not have to use general fund money to make its regular payment into the state employee retirement pension fund. The move will make $500 million available in next year's budget because of a payment due to an additional pension fund on July 1. ``The Republicans can clearly take joy that, in order to vote for the pension obligation bonds which were so very necessary, they insisted on us making a like number of cuts,'' Senate President Pro Tem president pro tem n. pl. presidents pro tem Informal A president pro tempore. John Burton John Burton is the name of:
Other elements of the deal include $327.6 million in education savings through reducing funding for the Proposition 98 guarantee to the minimum level allowed by law, while $48.7 million was recovered by phasing out the Scholarshare program. |
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