On Tuesday, Californian voters refused to pass Gov. Schwarzenegger’s ballot measures aimed at fixing the state’s budget crisis by increasing taxes, redistributing funds and borrowing money. Read the Truthdig article on the subject here.

Washington offered little hope in lending money to California, fearing it would set a precedent, with other states demanding the same help.

As a result, Schwarzenegger announced a plan to fill the gap of the budget crisis by attacking the poor. He is considering eliminating the state’s main welfare program, as well as health insurance that caters to low-income families and children, and CalGrants, a financial aid program for low- and middle-income college students.

The Los Angeles Times:

With deficit forecasts growing darker by the day, Gov. Arnold Schwarzenegger is considering a plan to slash California’s safety net for the poor by eliminating the state’s main welfare program, health insurance for low-income families and cash grants to college students.

The stark proposal surfaced in testimony by the administration at a joint legislative hearing Thursday that followed the governor’s decision to withdraw a week-old plan to borrow $5.5 billion to help balance the budget.

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