Revenue Up, Governor to Reverse Cuts
Schwarzenegger is expected to propose more transportation and education spending as a stronger economy adds to state coffers.
By Evan Halper, Times Staff Writer
SACRAMENTO — As California's economy improves and unanticipated cash flows into state coffers, Gov. Arnold Schwarzenegger is set to reverse some of the sharp budget reductions he has proposed in transportation and education spending — actions that drove unions and other groups to organize against him.
Administration officials, lawmakers and advocacy groups say the revised budget that the governor is scheduled to unveil Friday will probably have hundreds of millions of dollars in added spending to help repair crumbling roads and jump-start other transportation projects delayed by state cuts in recent years.
They say the governor will also move to increase the pay for teachers in low-performing and dangerous schools.
Department of Finance spokesman H.D. Palmer said restoring as much of the $1.3 billion in transportation money the governor had initially proposed to cut is the administration's top priority for the new revenue....
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The extra revenues are a welcome break for the governor, whose administration has suffered a number of setbacks in recent months and whose approval ratings have fallen significantly amid an assault of television advertisements from teachers and other unions angered by his cuts and proposed ballot initiatives....
http://www.latimes.com/news/local/la-me-budget8may08,0,73630.story?coll=la-home-headlines