Republican legislative leaders released a long-awaited plan Monday to ease the state's massive shortfall without raising taxes.
Republican Senate leader Dave Cogdill and GOP Assembly leader Mike Villines said their joint proposal would cut $22 billion from the state's projected two-year $40 billion shortfall.
The GOP plan proposes that voters be asked to approve a stiff state spending cap, and it proposes a wide range of changes to environmental and labor laws to bolster businesses.
The proposal would cut deeper into public schools, $10.6 billion, than proposals by Gov. Arnold Schwarzenegger or Democratic leaders.
The plan also targets the state's safety net of Medi-Cal and services for the needy, blind, aged and disabled.
GOP seeks to reallocate $3.9 billion in taxes from mental health programs and $2.1 billion from preschool programs and services.
Voters would need to approve the total $6 billion reallocation, since the money was generated from passage of Proposition 63 in 2007 and Proposition 10 in 1998.
The GOP plan, like that of Schwarzenegger, seeks to furlough state employees one day a month and eliminate two paid state holidays.
Unlike Schwarzenegger's proposal, the GOP plan also calls for a 5 percent reduction in the Legislature's budget - including a cut in pay for lawmakers themselves.
State law requires an independent state board to set legislative salaries. Thus, the Legislature could not force a pay cut, but the GOP expects lawmakers to voluntarily accept lower pay.
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