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July 21, 2009

California Lawmakers Reach Deal to Close $26 Billion Budget Gap
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In California, lawmakers have sealed a deal with Governor Arnold
Schwarzenegger on a plan to close a $26 billion budget gap. Under the
plan, the state government will significantly scale back services
offered to residents, particularly the elderly and the poor. The Los
Angeles Times reports tens of thousands of seniors and children will
lose access to healthcare. Local governments will lose several billion
dollars in state assistance. Many residents will stop receiving welfare
checks. New drilling for oil will be permitted off the Santa Barbara
coast. As many as 20,000 prisoners will be released before their
sentences are complete. The agreement also involves cutting nearly $6
billion from schools and community colleges and close to $3 billion from
the state’s university system.



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