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State Budget Chills Send Shivers Through K-12 Circles

Governors Sounding Alarm Over Deficits, Need for Cuts; California Lawmakers to Act

With California’s fiscal outlook worsening, Gov. Arnold Schwarzenegger last week called state lawmakers into a special session to balance the current budget, while governors in Mississippi, New York, and several other states sounded alarms about their own revenue problems.

Gov. Schwarzenegger is proposing about $4.5 billion in budget cuts—including $2.5 billion in education cuts—along with tax increases, to help plug a deficit that has ballooned to more than $11 billion.

“We have drastic problems that require drastic and immediate action—we must stop the bleeding right now,” he said during a Nov. 6 press conference on his latest efforts to plug holes in the...