NewsMax Wires
Friday, Sept. 6, 2002

A relieved Davis, who is up for re-election in November, told reporters in Sacramento that the $98.9 billion spending package included $7.5 billion in program cuts and the elimination of around 7,000 government jobs, but also increased spending on education and other programs aimed at children and families.

"It is not a perfect document, but it takes an important step in addressing the state's priorities," Davis said, as he signed the plan more than two months into the fiscal year that began June 30.

After two years of heady budget surpluses, California's finances were rocked in the past year by the hangover from the state's electricity crisis and the economic downturn in the tech sector that slashed revenues from business and personal taxes.

As a result, the Legislature had to cobble together a plan for the 2002-2003 fiscal year that Davis said included some tax increases that rankled Republicans and social program cuts that miffed his fellow Democrats.

Davis' budget director, Tim Gage, said the new $98.9 billion plan, when compared to the last budget of $101.3 billion, and on the bright side had an increase of nearly 7 percent in per-pupil spending for public school students.

The signing also resumed payments to state employees who had been forced to go without wages after June 30 while the budget was put together.

"I'm just happy that I'll be getting a paycheck again," Gage half-joked to reporters after the signing ceremony.

Still, the governor was glad the budget was finally completed after a "difficult and arduous process."

"Any time you can bridge a $24 billion shortfall, you can feel that you took a positive step," Davis said.

The latest budget drama comes while Davis tries to stay ahead of Republican Bill Simon in his bid for a second term in the Nov. 5 election.

Simon wasted no time Thursday in chiding Davis for what he called "a fabrication that is neither balanced nor fiscally responsible.

"The budget relies on billions of dollars in loans, funds shifts and transfers," Simon said in a statement. "Our state has already begun the next fiscal year with at least a $10 billion deficit because the governor was unwilling to balance the budget this year. This budget is about Gray Davis' re-election campaign, and he has sold out Californians."

Simon still trailed Davis in a new poll released Thursday, however, the survey actually showed that more voters were joining the ranks of the undecided.

The Field Poll conducted Aug 23-Sept. 3 gave Davis 38 percent of the vote to Simon's 31 percent, but the same group issued a poll in July in which Davis had 41 percent of the vote to Simon's 34 percent; the percentage of undecided voters rose to 22 percent from around 15 percent in July.

Simon's campaign issued a statement saying that their man was remaining competitive while Davis had slipped below the 40-percent level - a threshold they said doomed his chances for re-election.

"Like the Titanic, Gray Davis steamed straight ahead, thinking he could not be hurt," Simon campaign manager Sal Russo said. "And like the Titanic, he is now sinking into a watery grave."

Copyright, United Press International

All rights reserved

Read more on this subject in related Hot Topics:

California Governors Race

A product that might interest you:
FREE - 4 Months to NewsMax.com`s Magazine. Check It Out - Get four FREE