The California Legislature has approved a new budget for its 2010-2011 fiscal year, passing it a record 100 days after its deadline. The budget includes major reforms in the state’s pension systemand projects to save CalPERS $100 billion by, among other things, rolling back pension benefits approved in 1999.
Schwarzenegger is expected to sign the budget, although he can line-item veto spending items.
Announcement of the deal was welcome news to many in the state, including the Division of Workers’ Compensation, which earlier announced it would have to stop paying workers’ compensation benefits to some injured workers until a new budget could be approved because of a lack of funds.
Despite the budget agreement, it is criticized for assuming overly optimistic projections in revenue, such as more dollars from the federal government than many believe will be received. The budget also shifts spending to the following fiscal year, without actually solving the deficit problem.
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