More Economic Games From Arnold Schwarzenegger

 Budget


 During the Governor’s proclaimed “Year of Education,” his May Revision cuts K-12 education funding by more than $4.3 billion. His proposal borrows against the future, and includes a new state lottery scheme. The Governor introduced another plot to borrow from the gas tax, future lottery earnings, and various special funds.

The lottery scheme gives Wall Street bankers dibs on California Lottery revenue, so that education funding could stand to lose $1.2 billion in funding each year, as lottery revenue slows in a sluggish economy.

After publicly declaring that he has finally torn up the credit cards, the Governor wants to borrow $7 billion (in addition to the $3.3 billion borrowed mid-year) to cover our deficit.