Stimulus Could Help California's Budget

January 29, 2009 12:00:00 AM PST
If approved, the economic stimulus package would bring in about $8-billion dollars to California.But the money may not come soon enough to avoid layoffs and program cuts. The state's budget stalemate has dragged on for 84 days now. California will not be able to pay all of its bills in a matter of days.

Governor Schwarzenegger says the possibility of federal stimulus money would be only a temporary solution to the state's budget problems.

"I always make it clear, we will not use that money to bail us out because we have to bail ourselves out. I think we have to be very careful not to look at them as a savior, but look at them as icing on a cake," said California Governor Arnold Schwarzenegger.

Assembly Speaker Karen Bass said the federal money should be part of any deal they hammer out to ease cuts to classrooms and social programs.

Thursday morning a Sacramento County Superior Court Judge sided with the governor in his bid to save money by forcing tens of thousands of state workers to take days off without pay.

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