Gov. Arnold Schwarzenegger proposed Monday a revised $146 billion spending plan for next year that cuts social services and public transit, while making early payments on debt and avoiding tax increases. Democratic lawmakers were upset by some of the spending cuts, and vowed to not approve the budget without changes.
Schwarzenegger's new spending plan for 2007-08 varies from the first draft he released in January by increasing spending on education, prison health care and social service caseloads, while making larger cuts in transit.
The May revise also allows a $1.4 billion operating deficit;previously Schwarzenegger had proposed to fully eliminate it.
