Still No State Budget Deal

July 17, 2009 9:23:51 PM PDT
In his continuing efforts to pare down state government during one of California's worst budget crisis, Governor Schwarzenegger ordered all state agencies to reduce their vehicle fleet by 15% and to sell the surplus cars at the government garage sale next month.It's the Governor's latest move in dealing with declining revenues that has already forced him to close most state offices for three Fridays a month, make state workers stay home unpaid and pay bills with IOU's.

Budget talks were finally set to continue late today, after breaking down Wednesday night.

Meanwhile, a stalled budget fix is making Pa Lor anxious.

The young mother just signed up for state-funded health care for her kids, but Healthy Families stopped taking new enrollees Friday because of the budget crisis.

Pa Lor, concerned mother said: "What do we do if my kids get sick? How am I going to take them to the doctor? I don't have enough money to cover their healthcare."

For the first time since its inception, Healthy Families has to turn away kids. It's estimated nearly a thousand uninsured kids a day will lose access to healthcare.

There's anxiety, too, here at this gathering of City and County Leaders. They are furious at word Sacramento is going to take or borrow as much as $5,000,000,000 dollars, not $2,000,000,000,In property tax money, redevelopment funds and gas-tax money; Money local governments were desperately counting on.

Tony Cardenas, La City Councilman said: "That means we're going to have to contend with that big hole in the budget, and try to figure out how we're going to keep our libraries open, keep our parks open for our kids all summer and also keep firefighters and police officers on the streets."

Jim Ridenour, Modesto Mayor said: "We cut $19 million out of my budget for 09/10 and they think I'm going to have to go back and maybe cut another $10 million? It's just can't be done."

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