$145 Billion Budget Signed Late By Republican Arnold Schwarzenegger

Arnold Schwarzenegger, the governor of the state of California signed a $145 billion state spending plan Friday, making the plan a staggering two months late and $700 million less than the legislature approved.

Payments to schools, hospitals, state contractors and social service agencies totaling billions of dollars had been delayed because last financial year ended on June 30 and when the new one began on July 1 it was left without a budget.

The $700 million spending cuts were said to because of a promise to Senate Republicans to help end one of the longest budget stalemates in 30 years.

“Some things are worth fighting for, and a good budget is one of those things,” Arnold Schwarzenegger said. He also stated California’s deficit had been $16 billion when he took office in 2003.

However California still faces multi billion-dollar deficits through 2011, and depressed housing and credit markets threaten to take away state tax revenues even further.