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Governator and CA Legislature Finally Reach Deal

California legislature and Governor Arnold Schwarzenegger met on Monday to finalize a state budget deal. The result is a broad cut across California's government, moving costs into the future and taking funds from cities and counties. The action is an attempt at erasing the state's $26 billion deficit.

Some implications of the budget deal and their corresponding savings include:

  • K-12 schools and community colleges over 2 years: $6 billion
  • University of California and California State University: $3 billion
  • Three unpaid furlough days per month for state workers: $1.3 billion
  • California's health care program for the poor (Medi-Cal): $1.3 billion
  • State prisons: $1.2 billion
  • CalWORKS: $528 million

Members of both parties have placed blame on the ongoing recession for the choices they made. Assembly Republican Leader Sam Blakeslee of San Luis Obispo stated "This is of course, one of the most difficult economic times to face our state since the Great Depression. So none of these were easy choices. All of them entailed difficult options for the state." While Assembly Speaker Karen Bass, D-Los Angeles, stated "For Democrats, I have to tell you that many of the cuts we had to make...in another time we would have thought were unthinkable". She went on to say she felt that due to the recession she and her colleagues "didn't have a choice"

Leaders have expressed confidence in Monday's agreement, but only time will tell for sure what the outcome will be. A floor vote is scheduled for July 23rd, and leaders are already in the process of briefing their caucuses.

In lieu of these major cuts, GovWin anticipates a rather large decrease in volume of Information Technology procurements within California, especially as they relate to verticals such as Education, Health Care, Justice and Public Safety, and Social Services. To that end, don't be surprised if opportunities believed to be coming down the pike get put on the back burner, or some opportunities under evaluation get canned altogether.

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