California Budget to Close $26 Billion Gap

LOS ANGELES, Calif.- California lawmakers finally signed a budget deal that closes a $26 billion gap to ease the state finances. The budget contains more than $15 billion in cuts to services and discards a plan to drill for oil off of the Santa Barbra coast.

The State Assembly removed $1 billion reserve funds and plans to take gas tax revenues away from local governments. The rest of the budget contains many spending cuts including a K-12 and community college education budget, which lost $6.1 billion from its $58 billion base, while higher education lost $2 billion.

The state’s way of managing its budget is being challenged by outside groups who wish to change the state’s tax system and the entire state constitution.