Schwarzenegger Signs $85 Billion Budget

California Governor Arnold Schwarzenegger has signed a revised $85 billion budget and targeted welfare for deeper cuts, prompting threats from Democratic lawmakers to block his political agenda during his final months in office, The Associated Press reports.

Photo: Schwarzenegger Signs Billion Budget

After weeks of negotiations, the Republican governor and top lawmakers in the Democratic-led legislature early last week agreed to several measures to close the state's massive budget deficit of more than $24 billion.

On Friday, the legislature passed many of the measures to close most of the gap but left it to Schwarzenegger to use line-item cuts to fill in the rest of the shortfall.

Schwarzenegger said in a statement his signed budget would plug the deficit largely with spending cuts of $16.1 billion and some one-time moves while excluding tax increases. It also maintains a $500 million reserve, which analysts have said the state government likely will need should its revenue slump persist, Reuters reports.

The governor reduced the Department of Aging by $6.3 million, to $4.1 million. He cut the Department of Public Health by about $7 million, to $47.4 million. He slashed $80 million from a program for abused and neglected children and $16 million from domestic-violence programs. While the Legislature fought bitterly to stave off Mr. Schwarzenegger’s stated desire to eliminate health insurance for poor children, he reduced that program — Healthy Families — by $178.6 million, to $225.3 million, which will be matched by $737.7 million in federal money.

The state parks will see a budget reduction of about $6 million, to $422,517,000. About 100 parks will likely be closed, The New York Times reports