Cloudy Skies in California Will Persist Despite Budget Agreement

On August 24, California Governor Arnold Schwarzenegger signed into law the state's contentious 2007 budget (which was nearly 2 months overdue). It's especially difficult to pass a budget in the Golden State because a supermajority is required for passage. In order to gain the two-thirds majority needed in the Senate, the Governor committed to slashing $703 million in spending through his line-item veto power.  The California Budget Project reveals that about 75 percent of the vetoes came directly from Health and Human Service programs. And there's no reason to think these problems will go away on their own. The Legislative Analyst's Office predicts a shortfall of $5 billion for next year and the year after that.