California Governor Proposes State Spending Plan.

From: San Jose Mercury News (San Jose, California) (viaKnight-Ridder/Tribune Business News) | Date: January 11, 2002 | Copyright information

Jan. 11--SACRAMENTO, Calif.--Faced with a projected $12.4 billion budget hole, Gov. Gray Davis unveiled a $100 billion state spending plan on Thursday that would protect schools by borrowing billions, betting on relief from Washington and reining in benefits for the poor, elderly and disabled.

Heading into what is expected to be a tough re-election year, the Democratic governor detailed a delicately balanced proposal that seeks to meet California's needs without raising taxes.

"Preparing this budget has been a very painful exercise," Davis said after aides handed out ...

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