Californians will be relieved to know that their state Legislature has finally approved a new budget for it’s 2010-2011 fiscal year, passing it a hundred days after its deadline. The new budged includes projects that will save CalPERS $100 billion though part of that plan involves rolling back pension benefits that were approved eleven years ago. Other reforms to the state’s pension system are also included.
Governor Schwarzenegger is expected to sign the budget, though he can – and may – line-item veto individual spending items.
Especially grateful for the announcement of the new deal was the Division of Workers’ Compensation, which recently announced that the payment of benefits to some workers would have to end because there was no more money.
Even though the budget has been passed, it’s still coming under criticism for it’s optimistic revenue projections, which includes more federal money than most people believe the state will actually receive. In addition, the budget doesn’t solve the problem of the California deficit; it merely shifts spending to the following fiscal year.