Cuts, borrowing to balance state budget

Health programs and schools took the biggest hits Friday as California lawmakers whittled more than $2billion from state programs during a budget crisis expected to lead to even harsher reductions in the weeks ahead. Harrison Sheppard in the Daily News.

Combined with other reductions, cash-shifting and borrowing, the cuts meant that state officials now have dealt with almost half of a $14.5 billion deficit projected over the next 18 months.

But they said they still expect it to be extremely difficult and painful to finish the task in hope of producing a balanced budget by June 30, and some fear that deficit projections could worsen.