Which Way, L.A.?

Governor Balances Budget by Borrowing, Cutting Services

Governor Schwarzenegger claims his first budget is new and different, but it proposes some of the same fiscal devices he criticized from the spending plans signed by Gray Davis. Though his proposal does not call for new taxes, it does include massive cuts in health and welfare programs and increased fees for higher education. It also depends on borrowing, accounting maneuvers and assumptions about the future that may or may not come to pass, and it-s only the start of a long laborious process. What-s the difference between a fee increase and a tax hike? Could the rich pay the debt without feeling the pain? What do Californians want from government, and what are we willing to pay? We hear from a political scientist who's written on California's tax revolt, a spokesman for the Department of Finance and a molecular biologist who's co-authored his own tax proposal. Making News: Grocery Strike Hurts Other Southern California Retailers Secret talks collapsed yesterday, leaving almost 70,000 workers on the streets three months after the start of Southern California-s grocery strike and lockout. Despite massive losses, Vons, Ralph's and Albertsons reportedly rejected a union compromise, and United Food and Commercial workers are running out of money. Jack Kyser of LA-s Economic Development Corporation says the stoppage is hurting many small businesses as well.