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Calif. lawmakers make $2 billion in cuts

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Published: Feb. 15, 2008 at 7:51 PM

SACRAMENTO, Feb. 15 (UPI) -- The California Legislature Friday approved nearly $2 billion in spending cuts to help the state make ends meet through next fiscal year, a report said.

The Los Angeles Times reported that the emergency cuts -- which were approved with bipartisan support -- include cuts to schools and healthcare providers and a delay in welfare benefit increases.

Schools will receive $506 million less than anticipated and doctors who treat the poor under the state's Medi-Cal program will see their reimbursement rates drop by 10 percent, the newspaper reported.

Democrats had sought to close a $26 million tax loophole allowing purchasers of boats, motor homes and airplanes to take possession of their purchase outside the state and avoid paying California sales taxes, but the proposal was rejected by Republicans.

Lawmakers decided on the cuts after Republican Gov. Arnold Schwarzenegger called on the Legislature to help plug the state's $14.5 billion budget gap, brought on by declining tax revenues.

"Today was the first taste," Senate Pro Tem Don Perata said of the reductions. "There is a lot of time ahead with a lot uglier issues."

Topics: Arnold Schwarzenegger, Don Perata
© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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