- Newsmaker: Mayors Descend on Sacramento
Mayors and county supervisors trooped to Sacramento today, demanding protection for vital public services that are at risk because Governor Schwarzenegger cut the Vehicle License Fee, which local governments were counting on to pay their bills. Today, they received their last full payment unless there is action in Sacramento. Jenny O-Mara of public radio station KXJZ has more on the mood in Sacramento. Don Waldie, public information officer in Lakewood, says the cuts could deprive small cities up to 20% of their revenue.
Cuts in Education, State Credit-Rating Downgraded
During his campaign Arnold Schwarzenegger said education would be cut -over my dead body,- but yesterday he said Prop 98, which guarantees that education gets 40% of the budget, might have to be suspended after all. Meantime, the Governor and the Legislature are negotiating to borrow massive amounts of money by selling billions of dollars in bonds as another Wall Street rating agency reduced the state-s credit rating to rock bottom. Will K-12 education and community colleges take a hit after all? Can a tax increase be put off forever? What does the state's declining financial health mean to California-s major businesses. We hear from the Superintendent of Public Instruction, the State Treasure, and the director of the Business Roundtable.