The final package erased a projected $41.6-billion deficit by setting the budget at $130 billion for the next fiscal year and making $6.7 billion in cuts that take effect immediately. The gap was closed in these ways: 36% spending cuts, 30% new taxes and other revenue, 19% federal money, 13% in new borrowing and 2% vetoes, according to the administration.

California’s two massive university systems, UC and Cal State, will take a considerable hit.

At the 23-campus Cal State system, Chancellor Charles B. Reed said plans to reduce enrollment by about 10,000 students will go ahead.

UC President Mark G. Yudof said that "lower spending for higher education ultimately erodes student opportunity, innovation, healthcare and medical research, and economic growth for California."

Read full article [here].
by Jordan Rau , The Los Angeles Times.

Posted: February 21st, 2009, by: admin. Categories: . Awaiting Comments.