California governor Schwarzenegger presents new budget plan

May 15, 2010

California governor Arnold Schwarzenegger unveiled a new budget plan for California on Friday, claiming that the Californian economy faces growth and budget problems like eurozone countries such as Greece and Ireland.

Schwarzenegger said in a Sacramento press conference that California must cut spending to US$12.4 billion.

To achieve this goal, the governor proposed cutting the welfare system; however, state lawmakers quickly rejected this. Schwarzenegger said cutting the state welfare system for low-income families would save the state government $1.6 billion.

The governor also proposed freezing funds to local public schools and cutting state workers' incomes.

He wants to cut programs for the treatment of narcotics addiction for those using and cut state mental heath services by 60%.

California is set to receive monetary aid from Washington, D.C. worth $3.4 billion.

president, a , said, "The cuts are absolutely unacceptable," and the governor should focus on delaying business tax cuts.