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State Budget Week in Sacramento

Having spent last week signing hundreds of bills (including the Exchange legislation) and vetoing hundreds of others, the Governor, along with the legislature, turns his attention to the budget.

The legislature convenes this week, with the first committee hearing to take place on Wednesday. There are reports that leaders want to a deal signed by this Friday — to avoid going more than 100 days into the new year without a budget.

While the Big 5 recently announced a framework for a 2010-11 budget deal to close the $19.1 deficit, very few details have emerged.

What We Know Is In the Deal

• Reduction of pension benefits for future state employees;
• Pay cut for current state workers;
• Block on general tax hikes;
• Ballot measure to strengthen the state’s “rainy-day fund;”
• State worker reductions $900 million in savings through state-worker;
• Higher employee contributions toward pensions and unpaid leave days;
• Reduction in pension promises for future state workers;
• Suspension of a corporate tax deduction for two years;
• Cut in-home care for low-income disabled and elderly;
• Selling 11 state office properties; and
• Cuts to education spending.

Healthcare programs will likely dodge big cuts due to the Maintenance of Effort (MOE) provisions in the AARA and PPACA.

More on the budget as the week unfolds…