Free Republic

SACRAMENTO - Gov. Arnold Schwarzenegger's budget plan for eliminating an $8 billion state deficit relies on substantial borrowing and fund-shifting that is already angering local school and transportation officials. The proposal, to be released Monday, calls for at least $2.5 billion in borrowing, diverting transportation funds to pay for other programs, and loading school districts with $1.1 billion in new pension costs, administration officials said. As details of the spending plan for the fiscal year starting July 1 began to trickle out Wednesday night and Thursday, they drew scrutiny from fiscal analysts. ``There's an old maxim: If you are faced...

<p>Any credit counselor will tell you that, if you have a debt problem, the first step is to stop digging the hole deeper. It's a lesson we hope voters apply to Proposition 55 in the March 2 election.</p> <p>Prop. 55 would float $12.3 billion in bonds to upgrade and build new classrooms for K-12 schools and community colleges, the California State University and the University of California. Of the total, $10 billion would go to K-12 schools, $2.3 billion to higher education.</p>