Schwarzenegger plans to veto Assembly’s budget bill

The California Assembly passed a $5 billion budget proposal Thursday, which would have prevented the state from issuing IOUs to local governments, college students and welfare recipients.

Gov. Arnold Schwarzenegger, however, said that he would veto the bill, because it did not cover the entire budget deficit.

Republican lawmakers blocked the bill on the Senate floor shortly afterward, but Democrats have vowed that they will continue their attempts to pass the revisions.

The budget package planned to significantly cut funding from education, delay educational costs until a later time and put off other state expenses.

The recent decision may not have an immediate impact on the Cal Grants program, said Daniel Mitchell, professor emeritus at the UCLA School of Public Affairs.

“In theory, the program could be eliminated, but right now, it is unlikely,” Mitchell said. “The big problem is that the budget includes the Cal Grants, but if we run out of cash, payments will slow in July to avoid running out of cash, so these programs may not get funds.”

Meanwhile, University of California spokesman Ricardo Vázquez said that the budget approval process will continue.

“Our priorities have not changed, and we are keeping an eye on it and closely following it,” Vázquez said. “One of our main priorities is to preserve the meaningful Cal Grants program.”

Vázquez added that in light of the funding cuts to education, the UC hopes to retain the independence to determine which of its programs will be cut.

He said, “We understand that the UC will receive cuts, but we hope that these cuts will be unallocated so that the UC can be more flexible.”