Economy

GOP finally makes its budget proposal in California

Republicans finally threw a no-new-taxes proposal on the table Monday that calls for easing the state's massive budget shortfall by cutting deeply into schools and social service programs.

The plan broke new ground by making public the GOP's vision for cutting $22 billion from a projected $40 billion shortfall over 18 months, but neither Democrats nor Gov. Arnold Schwarzenegger embraced it.

"This isn't a negotiated compromise, this is a drill," said Aaron McLear, Schwarzenegger's spokesman.

"Until Republicans and Democrats start negotiating with one another on solutions the governor can support, the problem will continue to get worse every day," McLear said.

California expects to be unable to pay its bills by February or March, and fiscal officials will consider pulling the plug on $5 billion in public works projects Wednesday.

Read the full story at sacbee.com.

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