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Calif. Lawmakers Discuss Effects Of Federal Debt Deal

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The California Capitol in Sacramento

The California Capitol in Sacramento (File Photo)

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SACRAMENTO, Calif. (AP) — State lawmakers and policy analysts are trying to figure out how the tentative federal deal to cut $900 billion over the next decade could affect California and so far, it’s unclear.

The state is expecting $79 billion from the federal government this year, much of it money that’s passed through to local governments, schools and individuals for health care for the poor, education and transportation. The state is expected to spend another $129.5 billion.

Jason Sisney of the nonpartisan Legislative Analyst’s Office says the deal appears to result in little reductions in federal aid in the short term. But more substantial and unspecified cuts will have to follow in future years.

That could come at a time as the state and local governments are still dealing with their own deficits.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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