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FROM THIS EPISODE

With a state deficit of $ 24 billion, one third of the entire general fund and twice what was estimated in January, Governor Gray Davis has foregone his pledge of no new taxes. Today, the Governor made his case for reinstating past reductions in the motor vehicle tax and increasing cigarette taxes. He also wants to cut $ 8 billion from health programs, aid to local government and education. We hear more from a reporter who attended the news conference and an economist who studies economic and demographic trends in California. We also get opposing views on the budget proposal from Republican State Senate leader James Brulte, and Democrat Jenny Oropeza, chair of the Assembly Budget Committee, as the major political battle of this election year gets under way.

Governor Davis- Budget

Center for Continuing Study of the California Economy

Sacramento Bee

State Assemblywoman Jenny Oropeza

State Assembly Budget Committee

State Senator James Brulte

Producers:
Frances Anderton

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