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More Budget Cuts Feared in Governor's Revised Proposal Today

Governor Arnold Schwarzenegger is expected to call for more spending cuts when he unveils his revised budget on Monday. From Sacramento, Jenny O'Mara has more.

More Budget Cuts Feared in Governor's Revised Proposal Today

Governor Arnold Schwarzenegger is expected to call for more spending cuts when he unveils his revised budget on Monday. From Sacramento, Jenny O'Mara has more.

New and growing expenses along with the economic ripples from the state's sluggish housing market are some of the factors playing into the governor's revised budget. That's according to State Department of Finance Spokesman H.D. Palmer, who says Schwarzenegger's spending plan will include spending cuts beyond those he announced in January.

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The State Controller recently reported an historic $12 billion in personal income tax payments. But Palmer says that has not paved the way for an easy budget.

Palmer : We started out April about $1.3 billion below where we needed to be. We ended April a couple of hundred million dollars ahead of where we were supposed to be. So that's good, but that surge in tax revenues in April basically got us back to sea level.

Democrats have said among their top concerns are proposed cuts to welfare programs and public transit announced by the governor in January.