California budget plan relies on accounting maneuvers

Proposed agreement would delay payments to schools until next year, contain no new taxes or fees



Don Thompson
October 7, 2010 3:30AM (UTC)

Lawmakers are getting their first look at a proposed budget agreement that attempts to close California's $19 billion deficit with some spending cuts and a large dose of creative accounting.

The deal reached last week between Gov. Arnold Schwarzenegger and the leaders of the Assembly and Senate does not contain new taxes or fees.

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Instead, it relies on a series of assumptions and accounting shifts. For example, it would delay nearly $2 billion in payments to K-12 schools and community colleges until the next fiscal year.

It also counts on the state receiving $5.3 billion from the federal government and an economic recovery that would provide $1.4 billion in additional tax revenue.

The overdue annual spending plan starts to go before committees on Wednesday.

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Don Thompson

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